The Earnix Blog

Generative AI (GenAI) is transforming financial services by boosting efficiency and personalizing customer interactions, supported by tools like copilots and large language models. Prompt engineering optimizes AI model inputs, enhancing decision-making and streamlining processes in areas like pricing and underwriting.

Recent research shows that 74% of insurance companies still use outdated, legacy technology for pricing, rating, underwriting, and other vital insurance processes.  

This finding was reinforced in the Earnix 2024 Industry Trends report. While we asked the question slightly differently – “How urgent is the need for insurance operations modernization technology at your company?” – we heard similar feedback. The vast majority of insurers reported that this is a major challenge within their organization. 

Pricing intelligence solutions, powered by artificial intelligence (AI) and machine learning (ML), are transforming insurance, enabling carriers to make smarter, data-driven pricing decisions in real-time to stay competitive and maximize profitability.

There is no more important set of decisions in the insurance business than pricing. Price too low, and you’ll invite financial disaster when claims overwhelm premiums. Price too high, and you’re sure to lose business to competitors. No matter where you land on that spectrum, price and risk must be precisely balanced to ensure business success.