Xceedance, the Bermudian-registered technology company, is to establish a centre of excellence for generative artificial intelligence.

The company said this initiative would involve significant investments in developing and introducing high-ROI (return on equity) generative AI use cases across the insurance value chain.

Generative AI is a branch of artificial intelligence that focuses on generating new data based on existing data.

This sophisticated technology can be used in many ways, including data retrieval and analysis, content generation, and summarisation in a growing number of applications.

Arun Balakrishnan, the chief executive of Xceedance, said: “One of the most compelling advantages of generative AI is its ability to expedite data processing, elevating insurance professionals from laborious, repetitive tasks to higher-value responsibilities.

“Xceedance is at the forefront of innovation, collaborating with several insurers and brokers worldwide to establish a sandbox environment for experimenting with generative AI.

“This approach ensures motivated users gain exposure to generative AI, enabling them to identify high-return use cases and fail fast, fostering technological exploration.”

Xceedance said generative AI addressed the pressing need to assimilate data from diverse sources and extract insights into evolving risks. It equips insurers with a deeper understanding of underlying risks, allowing them to stay abreast of technological advancements in various industries, comprehend associated risks, strategically use data and embrace intelligent technologies.

In an industry where human expertise was crucial for customer engagement and generative AI was a relatively new and untested technology, the sandbox approach provided the groundwork for successful integration, the company said.

Generative AI accelerated data processing and swift, data-driven processes allowed insurers to deliver enhanced client value, fostering a more consultative relationship, the company said.

As the insurance landscape contends with emerging risks such as cyber threats and climate change, Xceedance said, generative AI would simplify identifying patterns and correlations within vast data sets, quickly unearthing deep insights and refining risk assessment models.

Xceedance said the advantages of digital transformation and AI-driven initiatives for insurers were extensive, spanning scalability, flexibility, data analytics, sustainable operations, and surpassing policyholder and agent expectations.

The company has a registered office in Bermuda, four offices in India, and single offices in the United States, Britain, Australia and Poland.