AI in Insurance
Insurers Race to the Starting Line in the Dawn of the AI Decision Era
Embracing artificial intelligence in insurance is a race, but one that experts describe as a race to the starting rather than the finish line.
“I think this is sort of a race to the starting line,” said Indico Data CEO Tom Wilde. “Getting your data in order so that AI can take advantage of it is going to prove to be one of the keys to compete into the next decade.”
Indeed, agentic and generative AI capabilities are still in their early days in insurance, but Wilde said he sees these technologies transforming the decision process in ways that seemed previously impossible.
“I think of insurance as sort of driven by decisioning: Should I underwrite this risk? How do I adjudicate this claim?” he said. “We kind of describe this as the dawn of the decision era where the combination of the rise of cloud computing and data investments and now AI really creates an unprecedented opportunity to drive high-performance decisioning across the enterprise—especially the insurance enterprise.”
Wilde said this comes as carriers are recognizing that they’ve been relying on individual expertise for decades, and this reliance can only take them so far.
“I absolutely have heard and seen [carriers] moving from this period of individual expertise to institutional expertise,” he said. “And AI really allows us to ring that out and make sure that decision capability is done repeatedly with transparency. So, I think that’s a huge opportunity.”
He added that for the first time in insurance, an endpoint can be created out of an unstructured data source to save time and create efficiency.
Conning Survey on AI Usage Just Published
Some trends on AI take up across the insurance chain are analysed in this new report;
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.
“Across the value chain, AI is already increasing efficiency and accuracy in areas like operations, claims, and underwriting, and we expect its impact to continue growing as insurers innovate further in the years to come,” Mazumdar added.
Conning’s Survey on AI & Insurance Technology gathers responses from top US C-suite executives and decision makers who “greenlight” the adoption of these emerging technologies. 44% of this year’s survey came from executives in Life / Annuity insurers and an equal percentage came from Property and Casualty insurers. The remaining came from primarily executives of multiline insurers.
For more information on AI in Insurance: The C-Suite Verdict, a key study for insurance industry executives, visit here or contact (888) 707-1711.
AI in Claims: Act Now or Be Left Behind | Insurance Thought Leadership
AI transforms insurance operations from a future concept to a present-day imperative, with early adopters already seeing dramatic efficiency gains.
The commercial property and casualty (P&C) insurance industry stands at a pivotal moment that mirrors the dawn of the internet era. Just as companies that dismissed the internet in the mid-1990s found themselves scrambling to catch up years later, today's insurers face a similar inflection point with artificial intelligence. The message is clear: AI adoption in claims processing is no longer optional, it's inevitable.
For C-level executives in P&C organizations, the question has shifted from, "Should we implement AI?" to, "How quickly can we integrate AI effectively?" This urgency isn't driven by hype but by compelling market realities that demand immediate attention.
Why AI Is Now Inevitable in Claims
Marc Lanzkowsky, JD, is executive managing director at Lanzko Claims Consulting.
News
Over half of property insurance consumers don’t trust claims calculations
Baby Boomers and Gen X lead generational skepticism of the insurance process.
Most U.S. consumers say insurers lack transparency in the claims cycle, according to a report by DocuSketch.
Overall, 54% of insurance customers say there is a lack of transparency in the process, while skepticism is more pronounced among older generations, the data showed, with 59% of Boomers and 61% of Gen X expressing doubt, compared to 44% of Millennials and 50% of Gen Z. At the same time, 45% of Americans say they don’t trust insurance brokers to act in their best interest.
LYNX Asks Court to Stop the Move to Safelite Solutions Coming July 1 - glassBYTEs.com
On Friday, June 27, LYNX Services LLC filed a legal complaint against State Farm, Safelite Group, and Safelite Solutions LLC. LYNX also asked the Court to temporarily stop the change in third-party administrators from going forward on July 1.
Though the complaint was filed with a request to the Court that it be sealed and out of public view, it is believed to accuse State Farm of disclosing, and Safelite of using, LYNX trade secrets and confidential information.
LYNX Services is also requesting that the U.S. District Court for the Central Division of Illinois issue an order against State Farm, Safelite Group Inc. (SGI) and Safelite Solutions LLC (SSL) that orders:
- SGI and SSL to stop using LYNX’s confidential information;
- State Farm to stop disclosing LYNX trade secrets and confidential information to other parties including Safelite;
- SGI and SSL to certify the destruction of these materials, and to issue a Temporary Restraining Order (TRO) that prevents Safelite from taking over as the third-party administrator for State Farm’s glass claims on July 1.
LYNX alleges that the defendants are using its service provider lists, service area data, pricing strategy and methodology and other highly confidential business strategies.
“Defendants’ acts of misappropriation erase LYNX’s unique ability to provide competitive benefits of METRYX to its insurance customers based on the use of LYNX’s logic and collection of high-quality data,” says the LYNX request for the Temporary Restraining Order.
A emergency hearing is expected to be held Monday, June 30. Check back to glassBYTES.com™ for more information as it is available.
This article is from glassBYTEs™, the free e-newsletter that covers the latest auto glass industry news. Click HERE to sign up—there is no charge. Interested in a deeper dive? Free subscriptions to Auto Glass Repair and Replacement (AGRR) magazine in print or digital format are available. Subscribe at no charge HERE
Citizens CEO hails 'tremendous' impact of reforms on Florida’s property insurance market - Reinsurance News
Tim Cerio, President, CEO, and Executive Director of Citizens Property Insurance Corporation, has suggested that Florida’s property insurance market is strong and well on the path to recovery, largely due to legislative reforms enacted in 2022.
According to Cerio, the firm continues to benefit from improving market conditions driven by recent legislative reforms. He noted that new private insurers are entering the Florida market, existing companies are expanding, and rates are beginning to stabilise.
“As a result, Citizens is returning to its role as Florida’s insurer of last resort, which reduces the risk of assessments for all Florida insurance consumers,” Cerio said.
He continued, “It is simply irrefutable that reforms championed by the Governor and passed by the Legislature have had a tremendous impact on improving this market. The data bears this out.”
Cerio highlighted a range of key statistics illustrating the market’s recovery, noting that since 2024, six of the 10 national insurers operating in the state have expanded their book of business, with four of them filing for rate decreases.
In total, at least 27 private carriers have filed for rate reductions since 2024, while 41 companies have requested no rate increase.
Meanwhile, Florida recorded the lowest rate increase in the nation in 2024, with a statewide average of just 1%.
Research
Crash Course Q2 report is here! 📉🚗- CCC Intelligent Solutions
Discover the latest auto claims and repair industry insights in CCC’s Q2 Crash Course report.
From APD profitability gains to continued pressures in casualty and repair, the new edition of Crash Course delivers a clear snapshot of the latest auto industry trends.
A few key stats:
✅ Personal Auto NCOR improves to 95.3%
✅ Total loss frequency hits 22.5%
✅ 31.7% of DRP estimates now include calibrations
What's your take on the evolving claims and repair landscape?
Read the full report here
Telematics, Driving & Insurance
UPDATE Arity promises more transparent UBI data and driving report access
Arity, a mobility data and analytics company and Allstate subsidiary, says it has found a way to offer more transparent usage-based insurance (UBI) data and driving reports to consumers.
Right now, users have to request a copy of their driving reports from Arity after signing up for a UBI program or agreeing to share their driving data with one of Arity’s mobile app partners.
“We recognize that this process can be unclear or difficult to navigate, and that not all consumers are aware they even have a driving score,” Arity told Repairer Driven News. “To help bridge this gap, our new D2C [direct to consumer] tool will make it easier for individuals to check whether a driving report exists for them, and view it directly, even before enrolling in a UBI program or agreeing to share it when shopping for insurance. This new tool is designed to bring greater transparency, accessibility, and control to consumers interested in understanding how their driving behavior might impact insurance pricing.”
The tool is slated to launch later this year, according to Arity.
Nationwide Links Safe Driving to Homeowners Discount in Telematics First | Insurance Innovation Reporter
The new Telematics Property Discount gives eligible auto telematics customers an average 5 percent off their homeowners premium.
Nationwide, the Columbus, Ohio-based insurance and financial services provider, has launched a first-of-its-kind program that rewards safe drivers with a discount on their homeowners insurance. The initiative, called the Telematics Property Discount, extends savings to customers who participate in one of the company’s auto usage-based insurance programs—SmartRide or SmartMiles—and who have earned a qualifying discount based on their driving behavior.
Now available in 12 states, the program offers an average 5 percent discount on Nationwide homeowners policies, automatically applied at the next renewal for eligible customers. Nationwide plans to expand the offering to additional states later this year.
“This program is about recognizing responsibility in all aspects of our customers’ lives,” says Sarah Jacobs, SVP, P&C Personal Lines, Nationwide. “According to our data, safe drivers are also less likely to experience avoidable home-related damages.”
Nationwide estimates that over half of its current auto telematics customers will qualify for the homeowners discount. No additional enrollment steps are required—once the auto discount is earned, the property discount is automatically triggered at the next homeowners policy renewal.
Trust and Shared Responsibility
The program reflects a broader strategic goal of creating more connected, behavior-based insurance experiences, Jacobs explains.
“We’re helping people move from being passive policyholders to active stewards of their homes and vehicles,” she says. “By linking auto and home policies through behavior-based data, Nationwide is building a relationship based on trust and shared responsibility.”
Anthony O'Donnell is Executive Editor of Insurance Innovation Reporter
InsurTech/M&A/Finance💰/Collaboration
Good Drivers Finally Get a Break: Good Driver Mutuality Offers a Smart, Fair Alternative to Soaring Auto Insurance Costs
As traditional premiums skyrocket, Good Driver Mutuality (GDM) offers a smarter, community-driven solution for unexpected vehicle repair expenses - helping members save on both collision and comprehensive ...As traditional premiums skyrocket, Good Driver Mutuality (GDM) offers a smarter, community-driven solution for unexpected vehicle repair expenses - helping members save on both collision and comprehensive events.
The Problem & The Promise
Auto insurance costs are spiraling out of control, leaving countless drivers struggling with ever-increasing premiums. Last year alone, average premiums surged by 24% nationwide, and Californians are bracing for a staggering 54% jump in 2025. For many, car insurance now consumes a painful 8-10% of their annual income, clearly signaling an urgent demand for a better solution.
Here's the stark truth: most of us are remarkably safe drivers. Statistics show that 94% of drivers don't file a single collision or comprehensive claim each year. So, why are we consistently overpaying for a product we rarely use? This fundamental inefficiency is precisely why Good Driver Mutuality was founded. MORE
Climate/Resilience/Sustainability
Extreme heatwave hits Europe with temperatures expected up to 44°C
According to the Portuguese Institute for Sea and Atmosphere a good part of the country is under alert for rural wildfires.
Europe is bracing for an exceptional heatwave expected on the weekend, with temperatures expected to be as high as 44 degrees Celsius in some countries.
According to France's official weather service, four southern departments including the Bouches-du-Rhône, Gard, Hérault and Pyrénées-Orientales are under heatwave alerts, while 14 departments are expected to be on Saturday.
Alerts of "severe" risks of wildfire, have also been issued.
One French meteorologist, Jérôme Cerisier, says they are expecting 10 to 15 degrees above the seasonal average.
Today
The Trust Tipping Point - Allstate
[Ed. Note: Important, timely, thought provoking and hopeful. Many kudos to Allstate. We look forward to how building trust will apply to insurance operations going forward]
Allstate research shows America has what it takes to improve trust!
Today Allstate* released research showing America has the desire and resources to improve trust, paving the way for increased prosperity.
Trust in government, business and leadership has declined precipitously around the world over the last two decades, threatening the foundation of freedom and economic prosperity. As one of America’s most trusted brands, we are working to strengthen trust. This research shows that leveraging community involvement to broaden relationships will improve trust and set America apart from the world.
Read the report and learn more about how we can improve trust here
Let’s unite on community engagement to increase prosperity and freedom in local communities and the country!
Tom Wilson, Chairman and CEO at the Allstate Corporation
Awards
2025 Women in Insurance Leadership nominations open. | Digital Insurance
Digital Insurance has opened the nomination process for its Women in Insurance Leadership, WIL: NEXT and Lifetime Achievement awards programs
Recognizing the accomplishments of female executives across the insurance industry has been a priority for the Women in Insurance Leadership program for 20 years. Since it was launched in 2006, the program has honored 213 women through the Women in Insurance Leadership (WIL), Women in Insurance Leadership: NEXT (recognizing the next generation leaders) and its Lifetime Achievement awards.
The 2025 awards program will take place in New York City in early November and features a more intimate recognition dinner followed the next day by a salon-style discussion that encourages the winners to network with each other and learn from their fellow honorees and other industry executives. Digital Insurance's editorial team will host the off-the record discussions to help guide the conversations and ensure a dynamic, constructive dialogue.
Nominations for this year's Women in Insurance Leadership: NEXT program, which expanded the longtime WIL program in 2019 to identify the emerging leaders in the industry, recognizes women under the age of 40 (as of Dec. 31, 2025) who have demonstrated an outstanding ability in a multitude of areas while embracing the rapidly evolving field of digital innovation. In a change from previous years, honorees may be nominated by anyone or can even nominate themselves for the recognition program.