Aon’s Zakhary: Gen AI will boost capital flow into the market

Generative AI will be a key component in the development of solutions to address “megatrend” insurance opportunities, according to Sherif Zakhary, CEO of Aon’s Strategy and Technology Group.

“Gen AI allows us to think about data in a different way – access data in a more robust fashion, and therefore gain insights to give us a better view on risk, and ultimately adopt these transformative trends to move away from aversion to new, to running towards new,” Zakhary told The Insurer TV in Monte Carlo.

“That's where the capital will follow,” he continued.

In its first transformative trends report, Aon identified megatrends such as the transition from fossil fuels to new forms of energy and shared mobility.

Zakhary said future editions of the report will identify other megatrends with the next edition likely to include space-related activities.

“So as [we see] the advent of reusable rockets and space tourism and frequent space exploration, that's all expanding a different view on risk. And we think that will continue to accelerate into the foreseeable future,” said Zakhary.

A top priority since Zakhary took over the lead position earlier this year at STG has been integrating the acquisition of actuarial software platform Tyche into Aon’s business. He said it is now part of a holistic, executable solution for clients.

As the industry works hard to stem the growth in the protection gap, Zakhary said technology can help to address the problem, as can moving the industry mindset away from a zero-loss target.

“Better data, better insights, drive a different view on risk that will ultimately not only change the protection gap, but change the capital entering into the market,” said Zakhary.

“So we lose that sort of static approach, to: how are we underwriting towards zero loss, and more – how do we expand our capabilities, deploy our capital, and therefore shrink the protection gap?”

Watch the 10-minute interview with Aon’s Sherif Zakhary to hear more on: