AI cuts price determination time by 75% at Swiss Re

Context

TL;DR

• AI boosts productivity by up to 80% in Swiss Re processes.
• AI reduces pricing determination time from weeks to a day.
• Humans remain central in decision-making despite AI adoption.
• Data integrity and quality are crucial for AI effectiveness.

Key facts

• AI productivity: Up to 80% increase in efficiency in some business processes.
• Pricing time: Reduced from up to three weeks to one day with AI agents.
• Applications used: Decreased from 14 to fewer than 5 for pricing determination.
• Decision-making: Humans make critical decisions, not AI.
• Data integrity: Central theme for successful AI adoption and process streamlining.
• Cyber risks: Potential damage from AI could exceed single company coverage capacity.
• AI partner: Swiss Re collaborates with Palantir for AI governance and transparency.
• Training needs: Employees need AI and data management skills for effective adoption.

Swiss Re CEO Andreas Berger has stated that artificial intelligence will boost work productivity to levels not seen in decades, potentially increasing efficiency by up to 80% in some business processes. In an interview with the NZZ am Sonntag, Berger explained that the reinsurance giant is redesigning its core processes from scratch using AI agents, without reducing staff. The goal is to free up time for higher-value activities such as claims management, closing new deals, and supporting customers to enhance their resilience.

The concrete case: pricing determination in 24 hours

Berger provided a practical example from the construction insurance sector. Before implementing AI, pricing a policy could take up to three weeks, involving 25 procedural steps and 14 different software applications. Thanks to AI agents, the process has been drastically simplified: employees now use fewer than five applications and can determine a price within a single working day, cutting processing time by 75%. This improvement is not an isolated case but represents a structural shift in the company’s working methods.

Governance and human responsibility

Despite the operational benefits, Berger emphasized that humans remain central to the decision-making process. According to the executive, Swiss Re carefully ensures that no critical decisions are made solely by AI. 'In the end, it’s the person who decides,' he stated, reiterating the importance of strong governance to ensure innovation is implemented responsibly. AI is used as a supportive tool, not a replacement for human expertise.

📊 Data and infrastructure risks

'Many companies, even in the insurance sector, have fragmented IT infrastructures — a critical obstacle to AI adoption,' Berger noted. 'Data integrity and quality are central themes.' Without reliable and structured data, AI can create additional complexity, costs, and frustration instead of streamlining processes. Swiss Re is working to improve data consistency and availability, a prerequisite for fully leveraging AI’s potential.

Security and insurance coverage

Addressing cyber risks, Berger acknowledged that the potential damage caused by AI could be enormous, exceeding the capacity of a single company to cover. In response, Swiss Re is exploring collaborations with the public sector to expand insurance coverage in this area. 'We’re discussing with authorities to enhance protection,' he explained, without providing specific timelines or details. The priority is to find solutions that balance innovation and security without compromising business competitiveness.

The choice of Palantir: governance and transparency

The CEO defended Swiss Re’s partnership with Palantir, a US-based big data analytics firm, despite the controversies surrounding it. 'We have strict governance processes when selecting our partners,' Berger said. The collaboration with Palantir is limited to defined and regulated use cases, with clear rules ensuring the responsible use of AI. 'If you find another provider with comparable capabilities, let me know,' he challenged, highlighting the high costs and lengthy timelines required to develop similar systems. However, he left the door open to evaluating alternatives, provided they meet the same standards of security and reliability.

Operational details

The introduction of AI into Swiss Re’s business processes is not just about efficiency—it also involves reallocating human resources and managing risks. For cross-border workers from Ticino who operate in similar sectors, such as financial services or insurance consulting, this innovation could represent a radical shift in their daily work routines. But what does this mean in practice for those who cross the Italy-Switzerland border every day?

Before vs. after: what changes for employees

Before AI, Swiss Re employees took weeks to determine an insurance premium, relying on manual processes that involved 25 steps and the use of 14 different software programs. Today, thanks to AI agents, the same process can be completed in less than a day, reducing complexity and the risk of errors. This not only accelerates operations but also frees up time that can be reinvested in higher-value activities, such as claims management or the development of new insurance products.

📊 Key takeaway: AI transforms time-consuming, error-prone tasks into streamlined, efficient processes.

Implications for Ticino’s insurance sector

Ticino is home to numerous insurance companies and brokerage firms operating at an international level. The adoption of AI could become a competitive advantage, pushing local businesses to implement similar solutions to keep pace with Swiss and global competitors. However, fragmented IT infrastructures remain a significant obstacle, particularly for smaller companies. 'Data integrity and quality are fundamental,' Berger noted, emphasizing that without a robust IT system, AI risks becoming an additional cost rather than an opportunity.

⚠️ Challenge: Smaller firms in Ticino may struggle to adopt AI due to outdated systems and limited resources.

Scenarios for cross-border workers: opportunities and challenges

For cross-border workers in the insurance sector, the adoption of AI could mean:

• Increased productivity: less time spent on repetitive tasks and more on strategic activities.
• Continuous training: the need to acquire data management and AI skills to stay competitive.
• Cultural shifts: adopting digital tools may require realigning team dynamics and skill sets.
• Cybersecurity risks: greater exposure to cyberattacks and data breaches, potentially impacting insurance coverage.

💡 Opportunity: AI can free up time for cross-border workers to focus on higher-value tasks, enhancing job satisfaction and career growth.

The role of Ticino’s institutions

The cantonal government and local institutions, such as SUPSI and USI, could play a key role in supporting businesses with AI adoption. Professional training programs and subsidized funding for IT infrastructure upgrades could help Ticino’s companies seize this opportunity without falling behind. Berger stressed that 'developing such systems requires significant time and investment,' but left open the possibility of collaborations with the public sector to expand insurance coverage for cyber risks.

📌 Actionable step: Local institutions could partner with businesses to provide training and financial support for AI adoption.

A practical example: what to do today to prepare

Ticino-based companies and workers looking to prepare for AI adoption can:

• Assess their IT infrastructure: ensure data is reliable, structured, and accessible.
• Invest in training: develop skills in data management, machine learning, and AI governance.
• Collaborate with tech partners: evaluate solutions developed by companies like Palantir, but with strict governance processes.
• Monitor cyber risks: implement updated security policies to protect against potential threats.

🔍 Pro tip: Start with a pilot project to test AI tools before full-scale implementation.

The future: AI as an opportunity, not a threat

Berger concluded the interview with a clear message: 'Innovation and science don’t scare me, as long as they are applied responsibly.' For Ticino’s cross-border workers and businesses, AI represents both a challenge and an opportunity to enhance competitiveness and free up time for higher-value activities. However, success will depend on the ability to manage risks, train employees, and invest in robust infrastructure.

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Key points

If you are a Swiss Re employee or work in the insurance sector in Ticino and want to understand how AI could impact your work, here's what to do today to prepare for the change, step by step.

Step 1: Assess the current status of the processes

1. Analyze your current processes: Identify procedures that are most time-consuming and error-prone. For example, insurance pricing or claims management. 2. Document each step: Create a detailed map of the 25 steps required before AI implementation, as Berger describes. This will help you identify where AI can bring the most benefit. 3. Involve your colleagues: Discuss with team members to understand what the pain points and specific needs are. AI adoption should be driven by real need, not technological hype.

Step 2: Check the data quality

1. Data cleansing: Make sure your data is complete, up-to-date, and free of duplicates. Swiss Re emphasized that data integrity is critical to the effectiveness of AI. 2. Data structuring: Create a centralized system to store data consistently. This may require the adoption of new software or the updating of existing ones. 3. Reliability testing: Run simulations to verify that the data is robust enough for AI. If the results aren't satisfactory, invest in training or analytics tools to improve the quality of your data.

Step 3: Train on key competences

1. AI foundation courses: Attend webinars, workshops, or online courses on artificial intelligence, machine learning, and data management. The SUPSI and USI offer up-to-date training programs that can be helpful. 2. Soft skills: develop problem-solving and project management skills, which are essential for integrating AI into business processes. 3. Collaborate with experts: If your company does not have a specialized IT department, consider working with external consultants or adopting turnkey solutions.

Step 4: Adopt safe and regulated tools

1. Evaluate technology partners: Before choosing an AI solution provider, check that they have strict governance processes and that they are in line with Swiss security standards. Berger defended Palantir's choice, but also left open the possibility of alternatives. 2. Define clear use cases: AI is not a one-size-fits-all solution. Identify specific areas where it can make tangible improvement, such as pricing or risk analysis. 3. Monitor results: After implementation, measure the impact of AI in terms of time saved, error reduction, and customer satisfaction. This will help you optimize your use of technology over time.

Step 5: Prepare for cyber risks

1. Update your security policies: Adopt up-to-date protocols to prevent cyberattacks and data breaches. Berger emphasized that cyber risks can be huge, so prevention is key. 2. Security training: Organize training sessions for employees on phishing, secure passwords, and handling sensitive data. 3. Cooperation with authorities: Stay informed about possible collaborations between the public and private sectors to expand insurance coverage in the event of cyber incidents.

Useful tools for cross-border commuters

For those who work in Ticino and want to stay up-to-date on the adoption of AI in key sectors, these tools can be useful:

• Productivity calculator: calcolatore produttività to estimate potential time savings thanks to AI. - AI Governance Guide: linee guida SUPSI for AI Responsible Deployment. - Online training: courses on machine learning and data management available on platforms such as Coursera or edX. - Regulatory updates: monitor the pages of the DFE to learn about the latest cybersecurity regulations in Switzerland.

Frequently Asked Questions: AI in Ticino

Will the adoption of AI reduce jobs in the Ticino insurance sector? > According to Berger, the goal is not to save staff, but to free up time for more value-added activities. Productivity will increase, but employees will be able to focus on more strategic tasks.

What are the main risks of adopting AI in Switzerland? > Berger highlighted two main risks: fragmentation of IT infrastructures and potential cyber damage. Without reliable data, AI can generate complexity, while cyberattacks could exceed a single company's coverage capacity.

How can I prepare my Ticino company for AI adoption? > Start by assessing the current state of your processes and data, train on key competencies, and adopt secure, regulated tools. Collaborating with reliable technology partners is essential.

Are there any government incentives for the adoption of AI in Ticino? > Berger has opened up the possibility of collaborations with the public sector, but no concrete incentives have been specified at the moment. Keep up to date on the DFE pages for news.

Is AI also accessible to Ticino SMEs? > Berger pointed out that developing AI systems is time-consuming and expensive. However, turnkey solutions or collaborations with technology partners can also make AI accessible to SMEs.

Source: tio.ch