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MS&AD Systems and Hitachi Partner for Generative AI in Insurance

In a significant development within the insurance sector, MS&AD Systems Co., Ltd. has teamed up with Hitachi, Ltd. to apply Generative AI technology in the development of mission-critical systems. This collaboration underscores their commitment to integrating advanced digital technologies to enhance operational efficiency and service quality for MS&AD Insurance Group's IT strategies.

MS&AD Systems operates with the mission to support a world-class insurance and financial group through IT, providing high-quality services driven by innovative digital solutions. In line with their initiatives for business growth, strengthening competitiveness, and enhancing service innovation, the company is embarking on projects that center around digital transformation (DX) and operational efficiency.

As part of this initiative, MS&AD Systems plans to implement Hitachi's Generative AI Framework, known as the Hitachi GenAI System Development Framework, starting from December 2025. This framework comprises five core functionalities aimed at assisting various processes in system development, including code generation. One of the standout features of this framework is its ability to simplify the input of prompt information, allowing for high-quality outputs in system development irrespective of the technician's expertise or familiarity with Generative AI.

By starting in January 2025, MS&AD Systems, in collaboration with Hitachi, will introduce this framework to enhance their development processes and then gauge its effectiveness. Early results from testing demonstrated that this framework not only adhered to the high-quality outputs expected in mission-critical environments but also achieved a notable 25% increase in productivity during production and unit testing phases. This promising outcome led to the decision to commence real-world applications of the framework.

The Need for Generative AI in System Development

Given the ongoing challenges within system development, including a shortage of specialized personnel and the need for standardization to mitigate dependency on individual knowledge, companies are increasingly turning to Generative AI. This technology could help alleviate burdens on engineers, particularly when inputting a high volume of complex prompt information during the system development lifecycle. Such complexities can lead to inconsistent response quality from AI, heavily influenced by the engineer's experience and familiarity with the subject.

Hitachi, while also undergoing its own transformation into a digital-centric organization, aims to innovate the working styles and productivity of software engineers facing these challenges. In preliminary studies, this framework demonstrated that 70 to 90% of the source code generated by AI was substantially accurate, indicating a step forward in both functionality and the accumulation of use cases.

Overview of the Generative AI Framework's Application at MS&AD Systems

Between January and April 2025, MS&AD Systems will initiate the introduction of the Hitachi framework across its operations. Subsequently, from May to September of the same year, they will focus on real-world applications within their primary area: the development of additional features for existing automobile insurance systems, comparing traditional development approaches with the new framework.

The effectiveness trials will utilize Helper functionalities within the framework to produce outputs. The initial results indicate that the precision levels achieved are comparable to those derived from traditional methods. As such, the framework is set to be a valuable tool that can operate effectively in real-world settings, projecting high performance regardless of an engineer’s proficiency with AI.

Future Directions

In the future, MS&AD Systems and Hitachi intend to broaden the scope of the framework's application across all system development processes within MS&AD Systems. This will include upstream processes such as requirements definition and external design, ultimately supporting the efficient delivery of high-quality products and services. By leveraging Hitachi's extensive experience in developing mission-critical systems alongside the capabilities of Generative AI, they aim to drive transformative changes in system integration that align with customer needs.

About MS&AD Systems

MS&AD Systems, as the core system company of MS&AD Insurance Group, supports innovations in the insurance and financial sectors by harnessing advanced digital technologies. They are committed to fostering growth and enabling high-quality service delivery through their IT initiatives. More details can be found on their website: MS&AD Systems.

About Hitachi

Hitachi works towards a harmonized society where environmental sustainability, happiness, and economic growth coexist through its solutions that leverage IT, OT (operational technology), and products. They operate globally across four primary sectors and continue to advance meaningful innovation in various business units. For more information, visit Hitachi.