'Connected' Headline of the Day
InsurTech Hartford | Agenda | Day 2 | April 30, 2025
Day2 at InsurTech Hartford Symposium kicked off with some inspiring words from Connecticut Governor, Ned Lamont. He shared that Hartford has a rich history of insurance, evolving from fire to injury protection in the early 1900’s and looking forward to how AI will reshape it.
“Insurance innovators will lead the way in today’s uncertain times.” - Governor Lamont
AI in Insurance
Will AI really transform the insurance industry?
With the thousands of blogs, articles, and presentations on AI and P&C insurance saturating the market, you may be wondering, “What more can be brought to the table?” While this may seem like just another blog on the topic, our research at ReSource Pro goes deep into the current state of AI across the ecosystem – agents/brokers, MGAs, and carriers.
It would be easy to share real and potential use cases, and I have been doing so in many forums and with many customers over the years. However, here, I want to address AI from a completely different angle – how AI will change the customers and risks of the industry.
By Mark Breading, Senior Partner of Transformation Services, ReSource Pro
AI-Washing In Insurance: Are Companies Overpromising And Underdelivering?
AI, a revolutionary force, is poised to transform industries, including insurance. But not all AI claims in the insurance sector stand up to scrutiny.
Insurers and insurtechs are increasingly touting AI-driven solutions, promising faster underwriting, enhanced claims experiences and improved customer engagement. Yet, many are merely rebranding automation as intelligence. While this may not always be intentional, the line between innovation and false advertising can become blurred. Transparency is crucial. Customers deserve to know what they’re really getting, and insurers and insurtechs need to ensure their claims about AI are both ethical and accurate. Misconceptions about AI in insurance are rife, making it challenging to discern real innovation from a marketing spin.
In other words, are companies using AI to transform insurance, or is “AI” simply a marketing tool?
AI-Washing: Understanding The Reality Behind The Hype
“AI-washing” refers to the practice of loosely applying the term “artificial intelligence” to technologies that don’t meet the criteria of true AI. Much like “greenwashing” in sustainability marketing, AI-washing makes solutions appear more advanced than they really are.
True AI involves machine learning, systems that learn from data and improve over time. In contrast, automation follows preset rules without adapting. Many insurance providers claim to use AI for underwriting or claims processing, but in reality, they are leveraging basic automation rather than advanced, self-learning AI systems.
A 2023 National Association of Insurance Commissioners (NAIC) survey found that 88% of auto insurers currently use, plan to use or are exploring the use of AI or machine learning in their operations. However, many of these implementations rely on preprogrammed automation rather than adaptive AI.
AI in InsurTech faces scrutiny as profit takes priority, research reveals
The insurance industry is undergoing a fundamental shift powered by emerging technologies, evolving consumer expectations, and a strategic pivot toward profitability and innovation. According to the newly released InsurTech Global Outlook Report 2025 by NTT DATA, InsurTechs are not only reshaping the insurance value chain—they’re redefining how insurers think about growth, risk, and customer engagement.
After years of aggressive funding and experimentation, 2024 marked a turning point as investors and insurers recalibrated their focus toward sustainable innovation. This recalibration, according to the report, is unlocking new value through smarter investments and deeper technological integration, setting the stage for a more efficient, customer-centric insurance model.
“Today’s customers expect coverage that fits around their lives: personalised, available in real time, and built into the digital services they already use,” said Dave Brooks, Head of Insurance Practice at NTT DATA UK&I. “People don’t want to dig through paperwork or wait on hold to file a claim. They want their insurance to be as intuitive and responsive as the rest of their digital lives, whether that’s getting a prompt about a lower premium based on their driving, or having protection automatically activated when they make a large online purchase. That kind of experience is what builds trust and loyalty.”
A New Era of Hyper-X and AI-ssurance The report introduces the concept of Hyper-X—a new benchmark in customer experience where hyper-personalisation, hyper-automation, and hyper-efficiency define the user journey. Through advanced use of AI, IoT, synthetic data, and real-time analytics, insurers are building dynamic policies that adapt instantly to changing user behaviour and risk profiles.
Genpact Study Shows Insurance Customers Embrace AI When Value and Benefits Are Clearly Demonstrated
Genpact (NYSE: G), a global advanced technology services and solutions company, today announced new research uncovering uncertainty around AI adoption within the insurance industry – offering insurers insights to help turn customer skepticism into confidence and preference.
New Genpact study reveals strategies to drive AI adoption and reshape customer perceptions in insurance
The study reveals that a majority (55%) of US adult respondents feel neutral about their insurance companies using AI, and 25% view it negatively. However, when AI delivers tangible benefits – such as faster and more accurate claims processing, customized quotes, and improved customer service – customer acceptance increases significantly. The findings emphasize an opportunity for insurers to shift perception and build preference and trust with their customers.
"As insurers embrace AI to enhance operations or customer experience, they must ensure that every interaction – whether human-led or AI-powered – meets or exceeds customer expectations," said Adil Ilyas, Global Business Leader for Insurance at Genpact. "This research highlights AI's potential to transform insurance, but also the need for insurers to close experience gaps and communicate transparently to build trust and loyalty."
InsurTech/M&A/Finance💰/Collaboration
Frontline Insurance Selects Roots' Insurance AI Agent Platform to Enhance Claims and Underwriting Service Levels
Roots, creator of the agentic AI platform for insurance and InsurGPT™, the world's first generative AI model for insurance, today announced that Frontline Insurance has chosen Roots' AI agents to enhance the efficiency of its claims and underwriting operations. Frontline is a leading multi-state Property & Casualty insurer delivering customizable solutions across the Southeastern United States.
After evaluating several vendors, Frontline determined that Roots was the preferred technology provider to meet its needs. Roots' AI agents are powered by InsurGPT, which includes proprietary generative AI designed specifically for insurance. Frontline is implementing Roots across a number of functional areas to increase efficiency and allow employees to focus on more 'value add' work.
"Roots showcased their knowledge of the industry, bringing a level of expertise to our discussions that we were simply not getting from other vendors," said Kurt Bonigut, CIO, Frontline Insurance. "The Roots team critically understood our vision and delivered a customer centric solution. We are very excited about this partnership."
"Manual processes limit insurance organizations' ability to scale teams, increase efficiencies and positively impact customer service," said Chaz Perera, co-founder and CEO of Roots. "With Roots, Frontline will be able to implement cutting-edge AI for a more streamlined approach. We look forward to partnering with Frontline to help reach its business goals."
ZestyAI Enables Insurance for 500,000 Properties Using AI
ZestyAI helps insurers provide coverage in disaster-prone regions through property-level assessment technology that quantifies risk more accurately
ZestyAI, an insurance risk analytics provider that uses artificial intelligence to assess property risks, helped insurance carriers extend coverage to more than 511,000 previously uninsurable properties in 2024.
The firm now aims to double this figure in 2025, potentially bringing insurance options to over one million homes and businesses in catastrophe-prone regions.
The development comes as the insurance industry struggles with coverage gaps in high-risk areas.
According to a 2024 Deloitte survey, nearly a quarter of homeowners in high-risk states cannot find coverage, whilst more than half report affordability as a growing concern.
"For too long, insurers have had to make high-stakes decisions with incomplete information," says Attila Toth, Founder and Chief Executive Officer of ZestyAI.
Bain-Led Group in Talks to Invest in Insurance Broker Acrisure
The deal, which is not yet finalized, would allow BDT & MSD Partners to partially redeem their earlier $3 billion investment.
A Bain Capital-led group is in talks to invest up to $2 billion in insurance broker Acrisure through preferred equity, Bloomberg reported.
The deal, which is not yet finalized, would allow BDT & MSD Partners to partially redeem their earlier $3 billion investment. Acrisure, a Grand Rapids, Mich.-based fintech-focused insurance broker with over $4.8 billion in revenue, has previously considered an IPO and counts the Abu Dhabi Investment Authority, Guggenheim Investments and Oak Hill Advisors among its investors.
Mobility
NHTSA relaxes crash reporting and autonomous vehicle regulations – Telematics Wire
Updated NHTSA Regulations Pave the Way for Increased Robotaxi Deployment
Autonomous vehicles have been navigating U.S. cities for several years. Companies like Uber, General Motors’ Cruise, and Waymo have deployed self-driving vehicles in cities like Pittsburgh, San Francisco, and the Bay Area. New rules from the National Highway Traffic Safety Administration (NHTSA) are set to expand the presence of robotaxis on public roads by easing deployment and relaxing crash reporting requirements for autonomous vehicle testing. These revisions focus on commercial use, suggesting that robotaxis for ride-hailing services will be prioritized over personal self-driving cars.
Key Changes in NHTSA Regulations
NHTSA is streamlining its crash reporting process by eliminating unnecessary and duplicative requirements, while maintaining its “Standing General Order on Crash Reporting” for automated vehicles and those with advanced driver-assistance systems. Additionally, the EPA is extending the Automated Vehicle Exemption Program, which was previously only applicable to imported AVs, to locally manufactured AVs. NHTSA believes that this program promotes vehicle innovation and safety by allowing companies to operate noncompliant vehicles on U.S. roads.
Impact on Tesla’s Cybercab
These revised rules are particularly significant for Tesla, which plans to launch a fleet of Cybercabs in Austin, Texas, this summer. Tesla’s latest robotaxi, the Cybercab, does not meet Federal Motor Vehicle Safety Standards (FMVSS) regulations since it is devoid of pedals and a steering wheel. The U.S.-manufactured Cybercab’s deployment will be made easier by the revised exemption program regulations.
Concerns and Conflicts of Interest
Tesla CEO Elon Musk, who also serves as a senior advisor to President Trump, has been advocating for revised AV regulations and criticizing existing crash-reporting requirements. Recent reports indicate potential conflicts of interest between Musk’s roles and Tesla, with concerns raised about the dismissal of NHTSA workers involved in vehicle automation safety.
Predict & Prevent
The $50 Billion Opportunity: Insurers Pivot from Reaction to Prevention
U.S. property and casualty insurers could see revenue from fee-based risk management services grow to $49.5 billion by 2030 from $21.6 billion in 2023, as part of a shift toward “predict and prevent” models rather than traditional reactive approaches, according to analysis by Deloitte.
The insurance industry stands at a crossroads where technology is enabling a fundamental shift from assessing risk through the “rearview mirror” to preventing losses before they occur, Deloitte says.
Recent wildfires in Los Angeles highlight how proactive risk management—building more resilient homes and monitoring electrical grids in real time—could have minimized devastation. Even for everyday risks, smart home devices and water leak detection systems have proved effective, reducing insurance claims by up to 93% in some cases, according to the report.
This evolution is supported by technological advancements including generative artificial intelligence and Internet of Things devices that enable insurers to capture data and predict potential losses across various business lines. While some insurers already offer risk management services, data-sharing capabilities, and white-label partnerships, few have successfully monetized these offerings, according to Deloitte. Instead, many insurers provide these services at no cost, hoping the investment will be offset by reduced claim costs.
The potential for revenue growth is substantial. Deloitte predicts fee-based revenue for U.S. P&C insurers will grow at a 12.55% compound annual growth rate, reaching nearly $50 billion by 2030—a dramatic increase from traditional business models where most insurers derive less than 3% of total revenue from fee-based services.
Claims
Sedgwick optimizes claim workflows with AI application Sidekick and Microsoft integration
Sedgwick, the world's leading risk and claims administration partner, has launched a new evolution of its proprietary tool through an ongoing technology collaboration with Microsoft, using Azure OpenAI Service and Azure AI Document Intelligence. The tool, known as Sidekick Agent, is set to continue transforming the claims administration process by integrating generative AI, agentic AI orchestration and data science into Sedgwick's global claims management systems.
"Enhancing and evolving Sidekick Agent to support clients and the needs of their customers and policyholders around the globe reinforces our position as the claim industry leader in leveraging AI," said Mike Arbour, CEO at Sedgwick. "The foundational pillars of our technology strategy — unparalleled AI advancements, more than 50 years of real-world expertise and the industry's richest data set — ensure our colleagues have the innovative tools needed to provide thoughtful, results-oriented solutions and address real-world challenges."
While the claims process has evolved incrementally over time, examiners' workflows have remained largely unchanged. Sedgwick is driving a transformative shift forward with the introduction of Sidekick Agent, a new suite of agentic AI insights and capabilities providing real-time guidance to claims professionals at the desk level. Sidekick Agent promotes understanding of data science models, analytics around claim durations and reserves, and guidance into key next steps of the claim life cycle. It introduces efficiencies that streamline decision-making and lead to optimal claimant experiences, cost-effectiveness and claim outcomes.
Announcements
Mitchell Launches Cloud-Native Guidewire Integration to Help Insurers Expedite Claims Processing
[Ed. Note: Very interesting development in North American auto insurance claims processing market where Guidewire has a significant marker share of auto insurer core claims systems]
Mitchell today announced the availability of its cloud-native integration for Guidewire ClaimCenter. The new integration optimizes loss profiling, assignment and damage appraisal workflows by automatically synchronizing data from Guidewire and Mitchell applications, helping auto insurers reduce leakage and expedite claims processing.
MOREn
CCC Intelligent Solutions to Expand Third-Party Auto Casualty Offering with EvolutionIQ’s Market-Leading AI Synthesis and Claims Guidance
Next-generation CCC products are designed to transform auto casualty claim management by helping teams make better, more accurate decisions and resolve claims faster
CCC Intelligent Solutions Inc. (“CCC”), a leading cloud platform provider powering the insurance economy, announced today its plans to accelerate the inclusion of EvolutionIQ’s proven, high-impact AI into CCC’s auto casualty portfolio. This next generation of solutions is being designed to provide AI-powered synthesis and best next action recommendations to enhance carriers’ ability to consistently manage increasingly complex injury claims and achieve better outcomes.
Medhub for Casualty will be the first available product of many planned innovations leveraging EvolutionIQ's claims guidance across the auto casualty claims life cycle. Medhub for Casualty adapts EvolutionIQ’s leading AI-based medical synthesis and insights technologies to the specific needs of auto casualty claims teams tasked with handling complex demand packages.
Working in concert with CCC Injury Evaluation Solutions, Medhub will offer casualty adjusters a thorough view of key medical insights to inform faster, more accurate claims decisions, with a particular emphasis on workflows supporting the evaluation of demand packages. Medhub is designed to keep claims professionals in full control, with all AI-generated insights containing direct citations to primary sources, offering industry-leading traceability and auditability.
“Making sense of medical documentation is extremely complex,” said John Goodson, chief product and technology officer for CCC. “Claims professionals manage hundreds of claims simultaneously, each including hundreds or even thousands of pages of information with continuous updates. EvolutionIQ has pioneered AI-powered medical record synthesis, moving the role of AI beyond simple summarization to surface critical insights that are most important for claims teams to focus and act on. The opportunity to bring EvolutionIQ’s capabilities to our casualty customers was a key rationale for our acquisition, and we’re excited that faster than anticipated progress in this area will enable us to launch solutions this year and deliver smoother and more intelligent experiences for everyone involved.”
Matt Gillespie, vice president of product for EvolutionIQ added, “We developed the Medhub platform for claims professionals to quickly understand the key insights and most actionable information, ensuring every claim is handled with precision. Basic AI summarization tools fall short because they lack the claim-level nuance, specificity and actionable insights that are tailored to the line of business. With Medhub, our customers in other lines of insurance report more efficient review processes, more accurate summarization and better targeted use of specialists on claims. We can’t wait to bring similar benefits to auto casualty.”
CCC Media Contact/Laura Weber/ lweber@cccis.com/773.960.7144
Source: CCC Intelligent Solutions Inc