Insurers in the Asia/Pacific region are set to gain 45% more value from their IT investments by 2027 through the integration of AI-driven Financial Operations (FinOps), says IDC.
Key insights
- AI-driven financial governance: The report indicates a significant shift towards AI-driven financial governance, where tools for dynamic expense management, predictive analytics, and real-time insights will empower insurers to optimise costs and improve operational efficiency.
- Modernising IT infrastructure: IDC identifies the modernisation of core IT infrastructure as the top priority for Asia/Pacific enterprises over the next 18 months. The future digital infrastructure will be hybrid, incorporating public clouds, private cloud environments, and edge computing, all of which will leverage AI models to enhance business value.
- Enhanced financial strategy: AI-driven FinOps is expected to revolutionise financial strategies for insurers, enabling smarter IT spending and scalable automation. As competition and regulatory pressures increase, insurers are prioritising AI tools for cloud cost management and predictive expense control.
- Balancing cost and transformation: Surya Narayan Saha, research manager at IDC Asia/Pacific, emphasises the need for global insurers to balance cost optimisation with digital transformation.
“AI-driven FinOps offers a path to smarter IT spending, but success depends on seamless integration, risk mitigation, and maximising ROI in an increasingly complex landscape.” Surya Narayan Saha
Future predictions for the insurance sector
The IDC report outlines several predictions for the insurance industry through 2029, including:
- GenAI initiatives: By 2026, 25% of insurers will achieve over 80% success in their GenAI initiatives by appointing an AI Orchestrator to eliminate internal silos.
- Legacy modernisation and ESG: By 2027, 45% of global insurers will adopt AI-driven legacy code modernisation and green-certified cloud data centres, enhancing energy efficiency and promoting sustainable IT practices.
- AI reskilling: By 2029, 65% of the insurance workforce will master human-machine collaboration, focusing on personalised learning and critical thinking to boost efficiency and customer satisfaction.
These insights provide a roadmap for insurers looking to leverage technology for sustainable growth and competitive advantage in a rapidly evolving landscape.
