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Capco Journal 54AI and Digital Transformation of Insurance Markets.pdf (251.07 kB)

Artificial intelligence and digital transformation of insurance markets

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journal contribution
posted on 2022-02-07, 10:22 authored by Christopher P. HollandChristopher P. Holland, Anil KavuriAnil Kavuri
Artificial intelligence (AI) is recognized as a strategically important technology because it has the potential to exploit human-like intelligence at machine scale and speed. However, the hype surrounding its business use masks the AI phenomenon and makes it difficult to analyze and evaluate in a systematic manner. Current approaches to defining AI tend to focus on its technical aspects and neglect the business, ethical, legal, and regulatory context. To remedy this deficiency, an AI systems approach is taken that defines AI within a broader systems framework. This is important because it provides a richer set of concepts that relate AI technology to business processes, business models, ethical considerations, and the legal and regulatory environment. A new framework of digital transformation is proposed, which is based on a synthesis of a new AI systems definition and business model concepts. The digital transformation model is illustrated with two global leaders in insurance markets, Ping An and Tesla insurance. In both cases, a similar causal model of digital transformation, continuous innovation, and rapid growth is identified that exploits the AI digital flywheel effect. The managerial and regulatory implications of the case study analyses and conclusions are described, and future research opportunities are outlined.


Technology Driven Change and Next Generation Insurance Value Chains (TECHNGI)

Economic and Social Research Council

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  • Business and Economics


  • Business

Published in

Journal of Financial Transformation




104 - 115


Capco Institute


  • VoR (Version of Record)

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© The Capital Markets Company (UK) Limited

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Reproduced with the permission of the publisher.

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  • en


Prof Chris Holland. Deposit date: 7 February 2022

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