- Nearly half say AI will be critical in asset allocation and investment strategy in five years’ time
- Around half will increase their AI budget by 75% or more in the next 12 months, global study finds
Insurance investment managers and investment managers working for insurers are increasingly using AI to guide and improve their investment strategy as spending on new applications increases, a new global study* shows.
A survey from Ortec Finance, of investment managers responsible for $10.48 trillion assets under management, found nearly half (45%) believe AI will be critical to investment strategy and asset allocation within five years, with a further 48% expecting it to be of significant importance.
The growing importance of AI for insurers is underlined by research from Ortec Finance, a leading global provider of risk and return management solutions for insurers, pensions funds and asset management companies.
All firms surveyed expected their investment in AI to rise, with nearly half (49%) of respondents saying their organization’s budget for AI applications will rise by 75% or more over the next 12 months.
That comes on top of increased spending in the past 12 months – 90% of respondents said they had already boosted spending on AI applications over that period.
Almost all (99%) currently use AI in the investment process with 91% having adopted it more than a year ago. Around a third (31%) have done so for more than two years. Around 60% say they use AI for evaluating investments, with 62% using it for client engagement and 55% using it for marketing.
Where it adds value
When asked where AI delivers the greatest value, biggest positive impact is said to be in:
- Investment evaluation (41%)
- Risk management (21%)
- Reducing operational costs (12%)
- Marketing, and client engagement (16%)
- Underwriting, and compliance & reporting (10%)
Hamish Bailey, Managing Director UK, and Head of Insurance & Investment said: “AI is already being used in some form by insurers and investment managers, and looks like this will continue to grow.
“Within five years AI will play a critical or highly important role in investment strategy and asset allocation for nearly all organizations surveyed, a trend clearly reflected in plans to significantly increase budgets in the next 12 months.
“Given the strategic importance placed on the role of AI, it is crucial that companies can maximize their investments with access to appropriate tools and expertise.”
Ortec Finance supports insurers and asset managers by providing advanced scenario analysis, balance sheet simulation, and portfolio optimization tools that take account of dynamic asset/liability interactions, liquidity and solvency constraints and help navigate market uncertainty to help make data-driven, resilient investment decisions.
For further information visit https://www.ortecfinance.com/en/industries/insurance-companies
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Notes to editors
* Ortec Finance commissioned independent research company Pureprofile to interview 100 senior executives working in insurance asset management or in investment management firms supporting insurers in May 2025. Survey respondents are located in the UK, France, Germany, Switzerland, Hong Kong, Malaysia, Singapore and Norway. Collectively the organisations they work for manage around $10.48 trillion.
For more information, contact:
Phil Anderson, Perception A.
phil@perceptiona.com /0044 7767 491 519