HK major insurers unite to foster AI adoption in insurance sector

Seven major insurers including AIA, AXA, and FWD Group, have pledged to promote artificial intelligence (AI) adoption in the insurance sector and strengthen Hong Kong's position as a regional AI hub.

This comes as the three insurers, along with Prudential, HSBC Life, YF Life Insurance, and China Taiping Insurance (HK), have joined a Hong Kong Insurance Authority (IA) programme named the “AI cohort programme” (人工智能促進計劃).

As part of the programme, the core participating insurers are committed to establishing an AI centre of excellence in Hong Kong to serve as a regional hub for AI innovation; supporting AI talent development through capability-building initiatives; and contributing to knowledge sharing with the industry and regulators.

Furthermore, the seven insurers pledged as core participants of the AI cohort to establish centres of excellence and nurture talent in Hong Kong, as well as to share insights with fellow industry stakeholders.

Meanwhile, the IA has carved out a strategy encompassing regulatory and developmental perspectives, balancing the need to ensure responsible AI adoption and inject market dynamism. 

Clement Cheung, CEO of the IA said that the seven insurers are the inaugural participants in the authority’s AI cohort programme, according to SCMP. The authority has planned to release new regulatory guidance next year to help all insurers effectively integrate AI into their operations. Additionally, an AI expert group will be established, comprising regulators, industry representatives, and technology experts, to assist the industry in leveraging technology to boost productivity and service while safeguarding customer privacy.

Cheung said that AI development is a global trend impacting various sectors, including insurance. He emphasised that Hong Kong must ensure it has sufficient talent, robust regulations, and the necessary infrastructure to establish itself as an AI hub and an international center for risk management, according to the report.

He noted that only 20% of the city's 157 insurance companies are currently integrating AI into their operations, such as claims processing and document management. Around 40% are looking into AI adoption, while the remaining companies are uncertain about how and when to implement it, he added.

“Accelerated AI adoption is transforming the global insurance landscape, with innovative applications sprouting in a wide range of areas including policy underwriting, claims settlement, fraud detection, customer service and sales support. We are committed to driving collaboration across different disciplines, and the AI Cohort is a key initiative aimed at achieving this objective. With advanced digital infrastructure, facilitative government policies and a dynamic insurance sector, Hong Kong is poised to become the regional AI hub,” said Stephen Yiu, chairman of the IA.

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