Southeast Asia insurers risk profit hit from weak data systems

Igloo Co-Founder and CEO Raunak Mehta was interviewed by Insurance Asia on how AI deployment on outdated data systems is limiting profitability gains for Southeast Asian general insurers. Mehta told the publication that insurers who make the right AI investments over three to five years could see profitability improve by 300 to 400 basis points, but warned that many still operate on decades-old infrastructure that needs upgrading before AI can deliver results.

"You need to separate the hype layer from what I call the infrastructure layer," Mehta said, noting that most general insurers in the region operate at high combined ratios with thin net incomes.