AI in Insurance
Conning Releases 2025 Survey on AI & Insurance Technology: The C-Suite Verdict
Conning, a leading global investment management firm, today announced findings from its third annual Survey on AI & Insurance Technology, AI in Insurance:
The C-Suite Verdict. The report highlights how U.S. insurers are increasingly integrating artificial intelligence into their workflows across impact areas, prompting a shift toward upskilled workers and key implications for cyber risk management.
"With 90% of the respondents in some stage of Generative AI evaluation and 55% in early or full adoption, Generative AI has shown the strongest uptick amongst all AI technologies. Insurers are ramping up their investment in and adoption of AI as an integral part of their workflow," said Manu Mazumdar, Head of Data Analytics and Insurance Technology, Insurance Research at Conning and author of the report.
The survey reveals several trends in AI adoption across the industry, including:
- Generative AI gains prominence – While utilization of GenAI was minimal in last year's analysis, 55% of respondents now report that they are at either early or full adoption stages.
- AI increasingly leveraged for claims – Alongside other areas of business, operations and claims processing represent key areas where insurers are integrating AI to improve efficiency and decision-making.
- Insurance workforce transformed by 2035 – As AI streamlines repetitive tasks, industry roles will be adjusted to value more customer relationship skills and technological literacy, demanding new skills and thus reshaping the traditional career ladder.
- Cyber risk both created and mitigated by AI – While advanced tech increases potential entry points for cyber-attacks, AI also revolutionizes insurers' threat detection and mitigation strategies.
Commentary/Opinion
Conditions good for buyers, but uncertainty persists: Lockton - Business Insurance
Commercial insurance market conditions remain favorable for buyers across many lines, but economic uncertainty abounds, with tariffs a key concern, according to a report issued Wednesday by Lockton Cos. LLC.
Rates continue to fall across multiple lines, particularly in property, financial lines and specialty coverages, as insurers compete for existing and new business, the brokerage said in the report
Liability remains a notable exception, as pricing and capacity challenges persist because of social inflation and rising loss severity, and broad tort reform remains elusive, the report said.
Insurers are eyeing the potential effect of tariffs on their operations and taking a cautious yet proactive stance amid rising economic uncertainty, Lockton said.
A key concern is that tariffs could disrupt supply chains and fuel inflation, leading to higher loss costs and more pressure on underwriting and pricing strategies, the report said.
“2025 has been anything but predictable,” Vince Gaffigan, Lockton’s U.S. market strategy and engagement group leader, said in a news release accompanying the report. “From social inflation and tariffs to regulatory shifts, geopolitical tensions, and a highly volatile stock market, the challenges are complex and interconnected.”
The Evolving Carrier-Agent Relationship: Five Trends Shaping the Future of Insurance Distribution
The insurance industry is in the midst of a fundamental transformation, driven by changing customer expectations, rapid digitalization, and the increasing use of artificial intelligence. At the heart of this transformation lies the evolving relationship between carriers and their key distribution partners: brokers and agents.
While technology is reshaping how insurance is sold and serviced, the human element remains essential. Whether serving personal lines policyholders or commercial clients, agents and brokers offer the insight, guidance, and interpretation of complex policy language that are beyond the current capabilities of automated systems. However, to continue to serve as trusted advisers, agents and brokers require greater support, more advanced tools, and a more collaborative relationship with carriers.
Sudheendra “SG” Galgali is Vice President, Head of Strategy, Innovation & Digital at American Modern, a Munich Re company
Announcements
Adjusto Launches AI Platform to Modernize Contents Claims | Insurance Innovation Reporter
Adjusto (Boulder, Colorado) has launched FairMatch, a new AI-powered platform designed to help property/casualty insurers resolve contents claims with greater accuracy and efficiency.
Unlike traditional approaches that rely on replacement catalogs or retail links, FairMatch equips adjusters with tools to determine like-kind-and-quality valuations, apply consistent depreciation logic, and prepare settlements, according to an Adjusto statement. The platform accepts handwritten, spreadsheet, or digital loss lists and automates much of the matching and review process while allowing adjusters to retain control of final decisions.
FairMatch automates:
-Line-by-line matching to like-kind-and-quality (LKQ) items that adjusters and policyholder can agree on - Depreciation and valuation logic that scales and is consistent - Settlement prep and flag reviews—automating 85% of the heavy lifting for adjusters giving them the space to provide a personalized and empathetic claims experience
“As an adjuster and a wildfire survivor, I know what people really need in the aftermath of loss,” says Michael Balarezo, CEO, Adjusto. “They want to be understood—and fairly compensated. That’s why we built Adjusto.”
Balarezo, a former all-lines adjuster and software engineer, co-founded Adjusto with Reid Greer, CTO, and James Terry, chief product officer. The team brings experience from Capital One, Crunchbase, Instawork, and other technology firms.
InsurTech/M&A/Finance💰/Collaboration
ZestyAI Secures $15 Million Credit Facility from CIBC Innovation Banking to Fuel Growth of AI-Driven Risk Platform
ZestyAI, a leading provider of AI-based risk analytics for the property and casualty insurance industry, has secured a $15 million credit facility from CIBC Innovation Banking.
The new financing will bolster the company’s balance sheet and support the continued expansion of its climate and property risk models, which are gaining traction across the insurance ecosystem.
The announcement comes as ZestyAI experiences rapid growth in demand for its parcel-level risk insights. In 2024, the company delivered more than 31 million property risk assessments—more than double the volume from the previous year—and is on track to exceed 46 million in 2025. The new capital will enable ZestyAI to scale operations and product offerings to meet that growing demand.
“We’ve built ZestyAI with long-term discipline and a clear mission: to help insurers navigate changing risks with confidence,” said Attila Toth, Founder and CEO of ZestyAI. “As demand for trusted, property-level risk insights continues to grow, this capital infusion enables ZestyAI to further invest in supporting this rapid growth and become the industry standard for property risk analytics.”
Westfield inks banking arm deal to prioritize P&C expansion | Insurance Business America
CEO cites momentum in insurance platforms and plans to reinvest in profitable underwriting
Westfield, a property and casualty insurance group, has announced that its parent company, Ohio Farmers Insurance Company, has entered into a definitive agreement to sell Westfield Bancorp to First Financial Bancorp in a cash and stock transaction.
The transaction is part of Westfield’s strategy to focus on its core P&C insurance operations.
Under the terms of the agreement, First Financial will acquire 100% of the stock of Westfield Bancorp from Ohio Farmers. The deal is valued at $325 million and will be paid 80% in cash and 20% in stock.
Specifically, the transaction will include $260 million in cash and approximately 2.75 million shares of First Financial stock, valued at about $65 million based on the 10-day volume weighted average price of the stock as of June 20.
Zurich Expands Cowbell Collaboration to Offer D&O, EPL, Crime, and Fiduciary Coverage to US SMEs through Wholesale Distributors
Cowbell, a leading provider of cyber insurance for small to medium-sized enterprises (SMEs) and middle-market businesses, today announced a major expansion of its product portfolio to include a comprehensive multi-line insurance offering from Zurich North America (Zurich) within the United States.
Building on its established success in Cyber and Technology Errors & Omissions (Tech E&O), Cowbell has collaborated with Zurich to offer Zurich Select Plus through the E&S distribution channel for small to medium-sized private businesses. Zurich Select Plus is a co-branded modular suite of four coverages: Directors & Officers (D&O), Employment Practices Liability (EPL), Crime, and Fiduciary insurance.
With this launch, Cowbell now offers cyber, technology errors and omissions, and management liability coverage through both a fully integrated API and a proprietary agentic email automation platform.
The move mirrors Cowbell's recent diversification in the UK, where it introduced professional indemnity insurance tailored for technology providers. Together, these initiatives reflect the company's vision to scale its tech-enabled platform globally and deliver intelligent insurance solutions to businesses wherever they operate.
"In cyber insurance, we've earned a reputation for underwriting discipline, broad distribution, and a user-friendly experience," said Jack Kudale, Founder and CEO of Cowbell. "Cyber remains one of the most complex risks facing businesses today. By leveraging our first-of-its-kind, vertically integrated, AI-powered platform and proprietary risk modeling, we've simplified the process, enabling faster, more streamlined transactions for our broker partners. Now, we've aligned with Zurich to bring innovation to additional lines of coverage, further advancing our mission to provide comprehensive, tech-forward insurance to the global SME and middle-market segment."
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Insurance POST: Clearspeed raises $60m for ‘high growth’ | Clearspeed
The round was led by Align Private Capital, with participation from IronGate Capital Advisors, Bravo Victor Venture Capital, KBW Ventures and private investor US Army general David H. Petraeus.
Speaking to Insurance Post, CEO Alex Martin, pictured, explained that the firm will be in “high growth” mode for the next two to three years.
“On the adoption curve, you have folks like Zurich, who are very innovative and willing to step out early, then there are other folks that are more patient and willing to wait and see.”
He shared that the new capital has been earmarked for further penetrating its existing markets and sectors, geographical expansion into Europe, the Middle East, Africa and Canada, as well as product innovation.
The UK will be a specific focus for this penetration, as Martin highlighted it as his favourite market.
“There’s an incredible amount of innovation happening [in the UK] for a number of reasons, so we’re very bullish on expanding our footprint in the UK,” he asserted.
When asked whether Clearspeed plans to list on a stock exchange or sell soon, as is typical of firms completing a series D funding round, Martin said: “You’re absolutely right, where we are on our journey, we’re hopefully going to be looking at a range of options.
“But right now, it’s absolute laser focus on the next two or three years of high growth and then exceeding all of our current projections to put us in a position where we have optionality in the market, whatever the strategy may be.”
Insurance penetration
Martin explained that Clearspeed intends to expand its products with existing customers in order to further penetrate the insurance market.
The firm will consider how to add features requested by clients and evolve its product roadmap to match the needs of the organisations it works with.
Martin shared that Clearspeed also hopes to expand into new insurance lines and areas of the value chain for existing clients.
“The fraud ecosystem is where we got started, and we’ve been migrating into the claims universe, but now we’d like to be at the point of sale, helping people get quotes bound and risks adjusted,” Martin explained.
Clearspeed is also looking to acquire new customers within insurance as part of its market penetration plan.
Martin said: “On the adoption curve, you have folks like Zurich, who are very innovative and willing to step out early, then there are other folks that are more patient and willing to wait and see.
“Along that curve, we’ll be moving back to meet those customers where they are and find out how we can help them augment their strategies.”
This comes after Clearspeed executive vice president for the UK, EMEA and APAC Manjit Rana confirmed to Insurance Post in October that the firm was in talks with the top eight insurers in the UK.
This article was originally published by Insurance POST
MetLife Partners with Sprout.ai to Accelerate Claims Automation Across Global Markets
Sprout.ai, an insurance automation specialist, today announced it has partnered with MetLife, a leading global insurer, to drive claims automation and deliver improved claims experiences. The collaboration, which spans multiple territories across the US, Asia and LATAM regions, is aimed at improving accuracy, speed and the overall customer experience.
Sprout.ai’s purpose-built AI technology seamlessly integrates into insurers’ existing systems, enabling automated claims decisions that are both swift and fair. By combining Sprout.ai’s advanced capabilities with MetLife’s human expertise, it ensures that AI serves as a powerful complement – amplifying human judgment, empathy, and experience in every claims decision.
The broadening of the partnership follows strong early success in Latin America, where the solution has already demonstrated measurable improvements in claims turnaround times, accuracy, and customer satisfaction.
For both MetLife and Sprout.ai, these results speak to more than just technological advancement – they represent a fundamental reimagining of the claims experience.
News
Citizens Insurance drops below 800,000 policies
Citizens had 777,592 policies last Friday, the lowest number at a comparable time of year since June 2021, according to data on its website.
Citizens Property Insurance Corp.’s policy count dropped below 800,000 last week and is projected to plunge to fewer than 654,000 by the end of the year, the state insurer’s top executive said Wednesday.
Citizens had 777,592 policies on Friday, the lowest number at a comparable time of year since June 2021, according to data on its website. Friday’s total also was down from 820,882 policies a week earlier, amid what is known as a “depopulation” program aimed at shifting customers into the private market.
With hurricane season starting June 1, the shifts into the private market will slow in the coming months but are expected to pick up again in the fall.
“Our policy count is going to creep up now, during the hurricane season,” Citizens President and CEO Tim Cerio told members of the Citizens Board of Governors on Wednesday. “The (policy) takeouts aren’t happening, and you do have new business coming in. But we are projecting that once the takeouts resume in the fall, that number will drop. Again, we should be, hopefully, knock on wood, just under 654,000 policies (at the end of the year).”
NICB Warns of Increased Cargo Theft in 2025
The confluence of tariffs, profitability to fund criminal enterprises, enhanced technology to defeat law enforcement, and geopolitical circumstances has led to an increased level of threat to the global supply chain, according to the National Insurance Crime Bureau (NICB), the nation's leading non-profit association dedicated to preventing insurance fraud and crime.
In the last 18 months, NICB has assisted in more than 240 cargo crime investigations, leading to more than 70 recoveries valued at nearly $40 million. Since 2022, the organization has opened an average of 150 commercial cargo crime cases per year. NICB agents play a crucial role in coordinating with local, state and federal law enforcement agencies, as well as NICB member insurance companies to aid in investigations of organized crime and other bad actors involved in cargo theft.
"Weaknesses in common-use business technologies like voice over internet protocol (VoIP) and GPS, coupled with business email compromises, identity theft, and synthetic identities enable sophisticated criminals to reroute high-value consumer goods such as electronics, medicine, and clothing from their intended destination to the black market," said NICB President and CEO David J. Glawe. "Bad actors leverage these vulnerabilities, along with economic uncertainty created by ongoing tariff negotiations, for their own profit."
For the first time, the value of stolen merchandise and estimated loss rose to more than $1 billion in 2023. Last year, cargo crimes increased to an all-time high, up 27% from 2023, according to CargoNet. Annual cargo theft losses are expected to rise another 22% from already historic evelns by the end of 2025. The estimated average value of an individual theft is more than $202,000.
Cyber Risk
Global executives overestimate their cyber resilience: Beazley - Reinsurance News
While more global executives cite cyber risk as their greatest threat this year compared to 2024, 83% say they feel prepared to counter it—up from 74% last year—potentially indicating a false sense of security, as many organisations still lack the sustained vigilance needed for true resilience, according to Beazley’s latest Risk & Resilience report.
The report revealed that, for the first time since 2021, concern over cyber risk has increased, with 29% of global executives identifying it as their top threat, up from 26% in 2024.
Despite the growing awareness of cyber risk, executives report feeling more prepared to handle cyber threats, with 83% believing they can counter them—up from 74% last year. Beazley suggests this may reflect a false sense of security in an increasingly dynamic and unpredictable risk environment.
However, most executives (79%) are looking to improve their cyber security through third-party suppliers this year, and 37% intend to invest directly in cyber security.