A new study from the Global Workforce Intelligence (GWI) Project, titled Intelligent Adaptation in Insurance – Predicting the Unpredictable, highlights wide disparities in how prepared insurance organizations are for the disruptions brought on by Generative AI. The report presents a detailed analysis of workforce skill gaps and strategic responses across the $10 trillion global insurance market.
Rising Protection Gaps Underscore Industry Risk
The insurance sector is under mounting pressure as the global protection gap—defined as the shortfall between economically beneficial insurance coverage and the actual coverage in place—continues to widen. In 2022, the protection gap stood at $181 billion. This increased sharply to $262 billion in 2023, with 2024 losses projected to surpass those figures and trend significantly above historical norms. Much of the increase is attributed to a rise in natural disasters, posing new challenges to an already strained industry.
Workforce Skill Gaps in the AI Era
According to the GWI Project’s research, conducted in partnership with talent intelligence platform Eightfold AI, insurance professionals across core functions such as sales, IT, product development, and claims management are facing critical skill shortages. The report notes that traditional strengths in sales and marketing, such as customer service and sales management, are becoming increasingly commoditized due to the rise of digital marketing funnels and AI-driven automation.
The study emphasizes that the ability to continually upskill, adapt, and respond to technological advances is now essential for organizational resilience. However, most companies are not currently equipped to meet these demands.
Key Findings
The report outlines four central findings regarding talent strategy and business adaptability:
- Lack of proactive risk management: Most insurers are unprepared to manage rapidly changing global risks effectively.
- Need for systemic HR solutions: Fragmented talent strategies are proving inadequate; a more cohesive, enterprise-wide approach is needed.
- Prioritization of adaptable skills: Leading companies—referred to as “pacesetters”—are focusing on skill sets and roles that enhance organizational flexibility.
- Deeper talent intelligence: Sophisticated analytics tools are becoming essential to inform effective workforce planning and decision-making.
The Four R Framework and Strategic Response
To address these challenges, the report recommends implementing a systemic approach to workforce transformation, structured around the “Four R Framework”: recruiting, retention, reskilling, and redesigning. It suggests that sustainable growth will depend on operationalizing talent intelligence across these dimensions.
The report concludes by presenting six actionable steps for leaders looking to develop a unified, AI-ready strategy for workforce adaptability. These steps are designed to help organizations keep pace with external disruptions and internal transformation requirements in an increasingly uncertain business environment.
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