Artificial intelligence (AI) and digital transformation in the insurance market: a case study analysis of BGL group

Artificial Intelligence (AI) is transforming the insurance industry and there are many examples in the business press and at industry conferences. However, there is a paucity of detailed conceptual analysis and evaluation of AI technology that places AI in a strategic context and considers how different AI applications fit together and form a coherent picture. In this paper, a detailed case study of BGL group, a leading European insurance firm, is presented. A general business process model of insurance companies is used to structure the analysis. Five AI applications are described using an insurance firm-customer data flow diagram, which illustrates the marketing impact of AI technology and shows the nature of the business value creation process. The results are generalized into an AI customer lifecycle model, which has broad applicability to digital transformation projects. The likely future direction of AI in insurance is outlined and further research opportunities are identified.