The role of AI in claims handling : a Maltese insurance industry perspective

Abstract

The insurance industry is under increasing pressure to adopt emerging technologies, with Artificial Intelligence (AI) becoming central to this transformation. Despite AI's rapid evolution, its integration within the insurance sector has been relatively slow, particularly in smaller markets such as Malta. This thesis examines the perceptions of key stakeholders regarding the implementation of AI in insurance claims handling within the Maltese insurance industry. It also evaluates the extent to which AI technologies are currently employed by Malta-based insurance companies and identifies the factors influencing their decision-making around AI adoption. A qualitative research approach was used, consisting of semi-structured interviews with professionals involved in claims management and strategic decision-making within the insurance sector. Thematic analysis was employed to extract common themes and insights from the participants' perspectives on AI adoption. The research reveals key factors influencing AI implementation, emphasising the need to balance technological innovation with human expertise. This study advances the understanding of AI adoption in a smaller insurance market and provides valuable insights for industry leaders and policymakers in Malta as they navigate the evolving digital landscape. The findings underscore the challenges that must be addressed to fully harness AI’s potential.