"Legal system abuse is the most important cost driver for insurance loss cost that exists" --APCIA President and CEO David Sampson  October 9th 2025

Video Recognition: A Necessary AI Capability for the Insurer of the Future - Matteo Carbone

Proud to finally publish this paper after months of work 💥

This paper presents a clear, executive-level case for why video recognition has evolved from a pilot to a core capability across P&C. It demonstrates how cameras serve as versatile sensors that convert routine footage into real-time, auditable signals, preventing loss, sharpening pricing, and compressing claims cycles

Two case studies illustrate the argument from theory to P&L:

🔹 The Hartford’s worker-safety program utilizes computer vision on shop-floor cameras to detect ergonomic risks, powered-equipment hazards, blocked egress, and PPE gaps, then converts these detections into targeted fixes and coaching. Result: fewer risky events, faster learning loops, and measurable injury reduction

🔹 Tokio Marine’s Drive Agent Personal brings dashcams, sensors, and live support to personal auto: instant crash evidence, quicker help, behavior feedback, and AI-assisted fault assessment. The payoff lands on loss ratio, retention, and customer experience

The near future is already visible: multi-sensor IoT fusion, searchable video with visual-language models, self-supervised learning that lowers data costs, and decisioning that closes the loop from detection to action

For the C-suite, the message is practical and urgent: start where loss concentrates, design for the frontline, integrate in the daily processes, be ready for a multi-year commitment to scale

If you believe connect & protect is the future of growth model, this is not another innovation theather, it's a playbook!

Read it to see how a “pair of eyes” added to your core insurance processes can make your policyholders, deliver fairer and faster claims, and generate a better combined ratio

LINKEDIN POST AND VIDEO

Matteo Carbone, Co-Founder, Board member, Insurtech Thought Leader, Keynote speaker and writer on insurance innovation

Insurers can’t afford to wait for new AI laws, says legal expert | Insurance Business Canada

Canada’s insurance industry may be waiting for comprehensive AI legislation, but legal exposure is already mounting across existing frameworks, warned Nathalie David (pictured right), partner at Clyde & Co, during a panel at the National Insurance Conference of Canada (NICC).

“The legal landscape for AI is rapidly growing, with significant implications for the insurance industry,” David said.

What is particularly of note for insurers is that not only do they have to be diligent when they include AI systems or tools within their own business operations, these advancements in technology also heighten potential exposures linked to the activities they insure, she warned.

Canada still without a full AI law – but regulation looms

While Canada has yet to pass a comprehensive AI framework, David said the Artificial Intelligence and Data Act (AIDA) – introduced as part of Bill C-27 – has already “set the stage” for responsible AI regulation.

“Even though it died … with the prorogation of Parliament earlier this year, after four years in the works… it still remains a priority for Parliament. We’ll have to see if we are lucky enough to see legislation reintroduced this year,” she said.

In the meantime, insurers remain bound by federal and provincial privacy laws that already affect how companies collect and use data for AI training and automated decision-making. Quebec’s privacy legislation, she noted, adds even stricter rules.

The Claims Industry’s AI Trust Paradox

The insurance industry finds itself at a fascinating crossroads. While AI dominates board meetings across every sector, the claims space tells a more nuanced story: one of cautious optimism tempered by legitimate concerns about trust, accuracy, and regulatory compliance.

A recent survey commissioned by our team at Wisedocs and conducted by PropertyCasualty360 reveals this paradox in detail, offering insights into how claims professionals view AI adoption and what it will take to gain trust across the industry.

The 2025 survey, "AI in Claims: The 4x Trust Effect of Human Oversight," polled claims professionals from PropertyCasualty360's audience, including adjusters, carrier-side claims managers, and third-party service providers. What emerged was a clear picture of an industry ready for technological transformation, but only under the right conditions.

KEY INSIGHT #1: THE TRUST DEFICIT

The survey's most striking finding centers on trust, or, rather, the lack thereof. Only 16% of respondents expressed medium or high trust in AI-generated outputs when used independently, with a mere 2% indicating high trust. This skepticism isn't born from technophobia but from practical concerns rooted in the high-stakes nature of claims work.

The primary barriers to AI adoption reveal why claims professionals remain cautious. Accuracy concerns topped the list at 54%, followed closely by compliance and regulatory risks at 49%, and integration challenges with existing systems at 45%. These aren't abstract worries – they reflect the reality that claims decisions carry significant legal, financial, and reputational consequences.

This cautious approach becomes even more apparent when examining current adoption patterns. A substantial 58% of respondents either don't use AI in their claims process or are uncertain whether their organization employs AI tools. This uncertainty itself is telling, suggesting that AI implementation in many organizations remains fragmented or poorly communicated.

Yet this trust deficit doesn't reflect a wholesale rejection of technology. Instead, it reveals an industry that understands the stakes involved and demands proven reliability before embracing new tools.

Reimagining Homeowners Insurance in the AI-Powered Claims Era

Historically, the insurance claims process was built on paper files, and that infrastructure has not fundamentally changed in more than 100 years. It’s long overdue for a refresher.

AI is widely regarded as one of the most transformative forces in the insurance industry, creating opportunities to streamline processes and enhance customer satisfaction. In home insurance alone, 70 percent of insurers are already using AI or are actively exploring its applications, with adoption strongest in claims (54 percent), underwriting (47 percent), marketing (47 percent) and fraud detection (42 percent), according to an August 2023 NAIC staff report on home insurance, artificial intelligence and machine learning. This rapid uptake reflects the industry’s recognition that longstanding systems are overdue for change.

By analyzing data and imagery, AI not only improves efficiency but also helps reduce human bias in underwriting, leading to fairer and more consistent outcomes.

FULL ARTICLE