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AI Is Growing, but Strategy and Skills Need to Catch Up

Source: Enterprise Technology Trends, Salesforce

AI adoption is expected to double within two years in the IT industry. And chatbots — a form of AI that have maintained the same pace of adoption as AI at large — are also expected to double in use within the same time frame, a study by Salesforce shows.

Eighty-three percent of industry leaders say that AI is transforming customer engagement, and 69% say it is transforming their business, with customer service and marketing ranking as the areas of AI’s highest potential value. Beyond customer service, roughly 80% of industry leaders anticipate AI contributing to increased business security and operating efficiency.

However, while 37% of leaders say AI is a high priority, only 7% have a completely defined AI strategy. Insufficient skill sets are the biggest barrier to AI implementation, with just 10% of workers having advanced AI skills to match the desire to adopt the technology. 

But who is responsible for closing this skills gap? Ninety-six percent of general public respondents said: companies. 

The Countries Where the Pandemic Has Lowered the Cost of Living

Note: Index shows estimated average expenses for a four-person family. The Rent Index estimates for renting one- and three-bedroom apartments in and outside of the city center.

Turkey, Colombia and Costa Rica are the top OECD countries that saw the biggest drops in cost of living between 2019 to 2021, according to BRINK analysis of numbers provided by online quality-of-life database Numbeo. 

While this may seem like a good thing, all three countries have struggling economies, which may explain the lower cost of living. Turkey is battling inflation and a weak currency, Colombia has crime and oil crises and Costa Rica is struggling with an impact on tourism.

Among the top 10 countries with higher index scores, South Korea, Germany and the United States have seen their rankings fall throughout the past 18 months. These are examples of countries that have done well economically throughout the pandemic. South Korea has seen exports rise 16.7% in 2021; Germany’s economy is forecasted to grow 3.1% this year; and the United States’ economy has shown relative resilience throughout the pandemic.

Insurer Premiums Are Aligning to Net-Zero Targets

Several major insurers and reinsurers are committing to transitioning their underwriting portfolios to net-zero by 2050, as part of the newly formed Net-Zero Insurance Alliance (NZIA). 

Launched in July 2021, NZIA includes eight institutions with over $400 billion in gross written insurance premiums and $130 billion in gross written reinsurance premiums. These figures account for 22% and 59% of global gross written insurance and reinsurance premiums among listed carriers, respectively. 

The reinsurance sector is highly concentrated. Consequently, net-zero commitments among a small number of the largest reinsurers place the reinsurance sector some way ahead of the insurance sector. In turn, this is expected to increase pressure on insurers to align their underwriting portfolios with net-zero. Over time, those that do not may find it harder to cede risks to net-zero-aligned reinsurers. 

How the Pandemic Affected the Non-Insured Population

Rates for those without health insurance in the U.S. remained relatively stable in 2020, according to data from the Census Bureau, analyzed by the Kaiser Family Foundation. Results show that 10.2%, or 27.4 million nonelderly people, were uninsured throughout 2020, a 400,000 increase from 2018.

The uninsured rate among nonelderly non-Hispanic Black people increased from 10.5% in 2018 to 11.7% in 2020, while the rate for Asian people decreased from 7.7% in 2018 to 6.4% in 2020. Although a majority of those insured were covered by their employer’s insurance, the 41.3% that weren’t shows a need for personalized health care plans.

Eugene Sayan, founder of Softheon, a cloud-based health insurance exchange and service provider, predicts a sea change in health care. “There’s a great opportunity to break down this macroeconomy around health care under the pillars of Medicaid, Medicare, the marketplace and commercial,” says Sayan. “What we’re going to start to see is consumers, individuals, empowerment taking so many different shapes.”

What Are the Biggest Upcoming Risks for Organizations?

Changes in consumer demand and cyberattacks are the two biggest risks organizations expect to face in the next two years, according to polls undertaken by Marsh McLennan. Other notable risks include workforce and industry disruptions, as well as challenges associated with international trade.

The poll results also show that the risk outlook of businesses is heavily influenced by their sector. For example, financial sector companies highlighted digital risks — stemming from new technology adoption and cyberattacks — while industrial sector firms were most concerned about international trade.

Today’s dynamic global risk environment necessitates that organizations proactively navigate upcoming risks. Those that manage to do so will emerge more resilient and agile in the face of future disruptions.

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