AI is rewriting the rules of the insurance industry

Despite its traditional nature of risk, the insurance industry is mainly reshaped by artificial intelligence.

Artificial intelligence has already become vital for the insurance industry, as it touches everything from complex risk accounts to the way insurance companies speak with their customers. However, while almost eight of every ten companies dip their toes in the water of artificial intelligence, a similar number admits that he did not make them more money.

Such numbers reveal a simple fact: just buying new luxury technology is not enough. It will be the real winners who discover how to weave them in the tissue of those they and all they do.

You can see the most dramatic changes in the heart of work: deal with claims. The mountain of paperwork and endless phone calls, a process that can last for weeks, is finally exposed to wandering by artificial intelligence.

The New York -based Lemonade’s deployment in 2021 resulted in the settlement of more than a third of its claims in just three seconds, with no human inputs. Or look at a major American travel insurance company that deals with 400,000 claims per year; I moved from a fully manual system to a 57 % automatic system, which reduced treatment times from weeks to just minutes.

However, this is not only about moving faster; It is related to obtaining it correctly. Amnesty International can reduce the type of expensive human errors that lead to the leakage of claims in the insurance industry by up to 30 %. The multiplication effect is a huge production leap, where officials can deal with 40-50 % of cases. This liberates real experts to stop being the ports of paper and start focusing on difficult situations in which the human touch and real sympathy occur.

It is a similar story for controllers, and people who calculate the risks. Artificial intelligence gives them the great powers, allowing them to analyze huge amounts of data from all kinds of places – such as remote degrees or credit degrees – that a person cannot disappear alone. He can even formulate an incredible initial risk report by looking at previous data and policies in the blink of an eye.

In practice, this helps create more and more accurate prices that reflects the unique situation of a person. Zurich, for example, used a modern platform to build a risk management tool whose assessments have made 90 % more accurate.

Suddenly, the subscription is no longer related to researching the rear vision mirror anymore – it is a vital process, can breathe on board to new and complex threats such as electronic attacks or climate change effects.

But this is not only about the rear office processor. When published in the insurance industry, artificial intelligence completely changes the conversation between insurance companies and the people they serve. It allows to avoid simply responding to problems to help customers proactively.

AI Chatbots can provide support around the clock throughout the week, as it increases smarter with every question they answer. This allows the human team to focus on the most difficult conversations. The true change of the game, though, makes things personal.

By understanding the client’s policy and behavior, Amnesty International can gently push them with a reminder of the renewal or suggestion of a product that already suits his life, such as use of use on use. It comes to showing customers who are already getting, which builds a kind of loyalty that was very difficult to obtain in an industry felt by more than 30 % of the claimants, and blames 60 % of slow settlements.

This protective instinct also helps the entire system. Artificial intelligence is the great fraud of the insurance industry and beyond, as it discovers strange patterns in the data that a person will miss, and has the ability to reduce losses related to fraud by up to 40 %. It keeps everyone honest and protects the works and its customers.

What is the fuel on this change of change? A new strain of low code platforms. They are accelerated, allowing insurance companies to build and operate new applications and services much faster than before. In a world where tastes and rules can change overnight, this type of speed is everything.

The best part of these tools is that they put access to democracy and put power to innovate in more hands. It allows ordinary business users – or “citizens developers” – to build the tools they need without the need to codify geniuses. These platforms often come safely and strong controls, which means that this newly discovered speed does not mean sacrificing safety or compliance, which is not negotiable for an industry like insurance.

When you retreat and look at the big picture, it is clear that entering AI is not just a technical project; It is a business or breaking business strategy. Those who have jumped early are already moving away from the package, seeing things like a 14 % jump in keeping customers and increasing 48 % in meadows degrees.

The market of this technology is scheduled to explode to more than $ 14 billion by 2034, and some believe that artificial intelligence can add $ 1.1 trillion of value to the industry every year. But the largest road barriers are not related to the technology itself; They are about ancient people and customs.

Data, especially in an industry such as insurance, are stuck in old systems that prevent artificial intelligence from seeing the entire image. To bypass this, you need more than smart programs. You need leaders who have a clear vision, the desire to change the company’s culture, and commit to training their people.

It is not the winners of this new era who spray with artificial intelligence in an angle – they will be the ones who lead from above, with a clear plan to make it part of the DNA. This will require understanding that it is not only about doing old things better, but about finding completely new ways to bring value and build confidence.

Learn more about how to rewrite AI to the rules of insurance industry in the upcoming web symposium “from complexity to clarity: AI + smart insurance layer” on July 16, 2025, at 7 pm BST / 2pm et. Industry experts from Appian and Exl will participate in the real world and practical visions about how the leading transport companies implement these technologies. Registration is available in The symposium link.

It includes distinguished speakers:

• VIKRAM MACHADO, First Vice President and President of Practice – Life, Pensions, Pension and Collective Insurance, Exl
• Vicarant Sarasawat, Vice President – AI Consulting, Exl
• Jack Morney, Enterprise Account Executive – Insurance and Financial Services, Appian
• Andrew Kerns, Insurance Industry Command, Appian
• Michaela Moore, Consultant Solutions – Insurance and Financial Services, Appian

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