AI in Insurance
Trump Takes Aim at State Regulation of AI
President Donald Trump issued an executive order last Thursday that seeks to restrict the ability of states to regulate artificial intelligence (AI). This action is the latest salvo in the increasingly contentious debate about whether and how best to regulate this quickly evolving technology.
The order is consistent with the Trump administration’s efforts to reduce regulatory compliance burdens and costs for AI developers and users; avoid a patchwork of potentially inconsistent state laws; and ultimately establish a uniform and minimally restrictive regulatory framework for AI.
The order includes the following elements: 1) AI Litigation Task Force. The order directs the attorney general to establish an “AI Litigation Task Force” that would initiate legal challenges against state laws deemed to be “inconsistent” with the Trump administration’s goal of encouraging innovation while maintaining a “minimally burdensome national policy framework for AI.” State requirements in the crosshairs would include those believed to unconstitutionally regulate interstate commerce or otherwise conflict with federal law.
2) Evaluation of state AI laws. The executive order instructs the U.S. Department of Commerce to review existing state AI laws and identify those that are deemed to be onerous or in conflict with the administration’s AI objectives. The department is specifically directed to identify laws that “require AI models to alter their truthful outputs” or that require AI developers and users to provide disclosures or reports that violate the First Amendment or other provisions of the Constitution.
3) Restrictions on federal funding to states. The statement also directs the Department of Commerce to withhold federal broadband funding to any state with an AI law that is deemed objectionable by the department’s evaluation process.
Commentary/Opinion
What Would You Do With $1 Trillion?
Record $14.6 billion fraud highlights an urgent need for entity resolution technology in P&C operations.
For the first time ever, direct premiums in P&C exceeded $1 trillion in 2025. Also a first in 2025: a $14.6 billion alleged fraud ring was exposed. (The prior record was $6 billion.)
The watchword for industry executives should be: "entity."
Fraud risk, customer experience, and effective AI? They're all keyed to entity. The money you make, the money you keep, and the faster you grow? Entity, again.
That total of direct premiums means there are now more than one trillion reasons to understand who is paying you and who you are paying. That "who" is an "entity" -- people, businesses, and organizations.
Entities have identity – names, addresses, phone numbers, etc. In logical fashion, there are only three kinds of entities – trusted, unknown, and untrusted. If you can't distinguish among these three kinds, then you are reading the right article.
With interaction, entities also have history, behavior, and outcomes. Entities may be related to each other. Sometimes those relations are very transparent, like parent-and-child or employer-employee. Sometimes they are hidden, like in an organized crime ring or in a conspiracy and collusion affiliation. Entities may be multifaceted – driver, renter, business owner, group leader, member of an organization, neighbor, volunteer, relative, known associate. These relationships all change over time, yet there is still the same entity.
Reflect on this for a pause here. Consider yourself for example as EntityONE. Now quickly list all the roles and relationships you have in the physical world at your home, office and neighborhood, and then online as an emailer, shopper, commentator, reader. Your identity in all those real and digital places may take different forms, but it is always you, EntityONE.
Marty Ellingsworth is president of Salt Creek Analytics. He was previously executive managing director of global insurance intelligence at J.D. Power.
AI in Group Health: From Isolated to Integrated
Enterprise-level AI enhances underwriting accuracy, pricing consistency and lifecycle performance.
In recent years, the group health insurance space has witnessed the broad adoption of artificial intelligence tools. A recent NAIC survey of U.S. health insurers showed 84 percent use some form of AI.
The shift is completely understandable: even with rising costs, unpredictable claim patterns and shifting risk profiles muddying the forecasting waters, those assessing and managing risk are charged with making faster, more accurate decisions with fragmented data. As the expectations grow taller, traditional methods often fall short.
In this climate, AI solutions can quickly analyze large datasets, apply consistent methodologies and uncover easily overlooked insights, yielding not only expediency but cost containment, pricing transparency and deeper customization. However, fully realizing AI solutions’ benefits means releasing them from their single-use silos
Marc Jeffreys is General Manager – Health for Gradient AI, a leading provider of customized artificial intelligence solutions for the insurance industry.
Tech Giants Aim to Eliminate Insurance Costs
Technology companies view insurance as a cost to eliminate, not a business opportunity to pursue.
My recent article on continuous underwriting drew some pushback from peers regarding the Tesla Insurance case study. Their argument: Progressive, State Farm, and Allstate have offered usage-based insurance for more than a decade—and they write far more of it. So, what makes Tesla Insurance special?
The difference is that Tesla sells cars, not insurance. Auto insurance is a variable in the car's total cost of ownership (TCO)—and Tesla Insurance exists to drive that number toward zero, or as close to zero as possible. Insurance isn't their business; it's their anti-business.
Tesla brings world-class engineering, its own AI infrastructure, and relentless drive to overcome barriers—including regulatory ones. With a $1.5 trillion market cap (as of this writing)—the equivalent of 11 Progressives, 24 Travelers, 28 Allstates, or 40 Hartfords—it packs serious financial firepower.
Tom Bobrowski is a management consultant and writer focused on operational and marketing excellence. He has served as senior partner, insurance, at Skan.AI; automation advisory leader at Coforge; and head of North America for the Digital Insurer.
2025/2026: REVIEWS & OUTLOOK
2026 P&C Insurance Trends: The Forces Reshaping the Industry
As the P&C industry heads into 2026, insurers are navigating a complex environment defined by rising risk complexity and increased pressure on margins. At the same time, the technology landscape is advancing faster than ever.
Against this backdrop, several trends stand out as defining the year ahead, shaping how insurers operate, compete, and grow. Here, Guidewire experts share their perspectives on what’s changing and why it matters, covering strategic areas from AI and data analytics to climate risk and ecosystem strategy.
Key Trends:
- Intelligent Insurance Is the New Operating Model
- 2026 will be the Make or Break Year for AI Operationalization in Insurance
- Insights-Ready Architecture is the New Baseline for Insurance Competitiveness
- The Unified Pricing Pivot will play a Critical Role in Solving the Insurance Speed-to-Market Challenge
- The Rise of the Underwriting Command Center: 2026 Marks the End of ‘Inbox Underwriting’
- Property-Specific Data will Redefine 2026 Underwriting Standards
- The Ecosystem Advantage: Partnerships are Accelerating 2026 Innovation
- MGAs Are Recognized as Innovation Engines
- Knowledge Management Infrastructure Becomes the Strategic Defense Against the Talent Cliff
News
Progressive files trademark for ‘Snapshot Pro’
Progressive has filed a new trademark application for Snapshot Pro, signaling a potential expansion or evolution of its usage based insurance and telematics capabilities.
Filed on December 18, 2025, the application spans commercial auto insurance and supporting technology. It covers core insurance functions such as underwriting, rating, quoting, policy issuance, and servicing, along with digital tools that deliver insurance information to customers.
The filing also explicitly references telematics hardware and software, including electronic data loggers, vehicle monitoring devices, firmware, and a mobile app used to collect driving data for insurance rating.
Separately, Snapshot ProView is Progressive Commercial’s existing telematics program, offering small businesses an automatic 5% discount and optional fleet management tools through a plug in vehicle device that tracks driving behavior and informs renewal pricing.
InsurTech/M&A/Finance💰/Collaboration
Beneva Accelerates Digital Auto Product Innovation with GFT | Insurance Innovation Reporter
By converting its auto products to APD in eight weeks, Beneva unlocked faster digital delivery and business-user flexibility through a tightly coordinated engagement with GFT.
When Beneva (Quebec City) set out to advance its digital capabilities for auto insurance, the insurer saw a clear opportunity in Guidewire’s Advanced Product Designer (APD). Guidewire had begun encouraging customers to shift product definitions into APD to unlock automated code generation, product-specific APIs, and more efficient digital enablement. But such a transition required both deep product knowledge and a partner capable of navigating an early-adopter environment.
For Beneva, that partner was GFT (Stuttgart, Germany), a long-standing collaborator on Guidewire initiatives across the organization.
“We want to be innovative in terms of digital and provide more services online to our customers,” says Éric Marcoux, IT Vice-president, Property & Casualty and Corporate Services, Beneva. “To take full advantage of what Guidewire now generates automatically—including the digital components—we needed to have our products defined in APD.”
Anthony O'Donnell, Executive Editor, Insurance Innovation Reporter
Webinars/Podcasts/Interviews
LexisNexis: US Auto Insurance Reaches a Turning Point to Precision Pricing
LexisNexis: US Auto Insurance Reaches a Turning Point to Precision Pricing
LexisNexis Risk Solutions’ Jeffery Batiste and Tanner Sheehan discuss how after years of steep rate increases, U.S. auto insurers are shifting from broad-based pricing to more data-driven, real-time strategies and claims efficiencies.
Awards
100 Best Insurance Leaders in the USA | Hot 100
America's 100 best insurance leaders are honored for their foresight and ability to adapt to a changing landscape with initiative and impactful strategies
Enabling people to work better
Paradoxically, for America’s best insurance leaders, the biggest challenge this past year has been juggling so many challenges at once. From rising reinsurance costs and severe weather events to carriers pulling back from key markets and shifting regulations, the hurdles kept coming. However, the biggest factor within their control has been addressing talent shortages and employee gaps, which have been exposed by a new generation of ultra-connected customers who expect lightning-fast service.
“Leaders have been forced to make peace with chaos. To adapt faster than regulation allows. To rebuild trust in an age when headlines travel faster than help,” says Jeff Arnold, founder of RightSure.
The Jacobson Group’s president, Corey Pinkham, paints a similarly tough picture of the situation facing industry leaders. “Organizations are being hammered by high costs, inflation, and large payouts from recent catastrophes – seeing their margins and profitability constrained. At the same time, there’s increasing pressure for leaders to make high-cost technological investments to stay competitive, specifically in AI,” he says. Insurance Business America’s 11th annual Hot 100 list honors those who have risen to the challenge and overcome the hurdles on their path. The 2026 list was narrowed down to those who have shaped the insurance industry over the past 12 months and are the best the industry has to offer.
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