Role of AI in insurers' investment strategy growing rapidly

Written by Adam Cadle

15/07/2025

Almost half (45%) of European and Asian based insurance asset managers or investment management firms supporting insurers believe AI will be critical to investment strategy and asset allocation within five years, a new survey from Ortec Finance has revealed, with a further 48% expecting it to be of significant importance.

All firms surveyed expected their investment in AI to rise, with nearly half (49%) of respondents saying their organisation’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.

When asked where AI delivers the greatest value, (41%) point to investment evaluation while 21% say it has the biggest positive impact in risk management. Just one in eight (12%) say AI has the biggest positive impact in reducing operational costs. Marketing and client engagement was considered most impactful by 16% of respondents, with 4% citing compliance and reporting.

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.

“Given the strategic importance placed on the role of AI, it is crucial that companies can maximise their investments with access to appropriate tools and expertise.”

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 $10.48trn.

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