How do insurance companies use AI?
Asked by: Dr. Chanel Williamson | Last update: November 15, 2025Score: 4.3/5 (42 votes)
How is AI being used in the insurance industry?
Leaping into the known unknown of AI
From back office to front office, insurance functions can see potential benefits in automating claims handling, enhancing fraud detection, and optimizing agent and contact center operations. For now, these tend to be human-in-the-loop processes — with potential to fully automate.
Which insurance company is using AI?
Ping An Insurance (Group) Company of China is one of the leading patent filers in underwriting AI. It has been at the forefront in utilizing advanced technologies such as AI, cloud, and big data to drive operational efficiencies, improve underwriting and claims management procedures, and minimize security risks.
How many insurance companies use AI?
47 percent of home insurance companies and 18 percent of auto insurance companies reported using AI tools in underwriting.
What is AI in insurance?
An additional insured is a person or organization not automatically included as an insured under an insurance policy who is included or added as an insured under the policy at the request of the named insured.
How AI is being used in the insurance industry
What are the risks of using AI in insurance?
Examples of potential claim triggers that AI could have on insurance are included: Cyber liability could be triggered where training or use of AI results in privacy breaches or digital threats. Errors & Omissions policies may be triggered where the use of AI results in algorithmic bias and system failures.
How much are insurance companies investing in AI?
This statistic shows the IT spending by insurance companies on cognitive/artificial intelligence technologies worldwide in 2016 and 2021, by type. In 2016, the global insurance industry spent 76 million U.S. dollars on software for cognitive/AI technologies, which is due to rise to 571 million U.S. dollars by 2021.
How are insurers using generative AI?
Cost savings and efficiency – By investing in generative AI-driven solutions related to content creation for low-risk use cases, insurers can reduce spend across low-risk functional domains, thus enabling efficient spend allocation, which could lead to significant cost savings and operational efficiency gains.
Which industry uses AI the most?
- Healthcare.
- Retail and e-commerce.
- Banking and financial services.
- Supply chain and logistics.
- Travel.
- Real estate.
- Media and entertainment.
- Manufacturing.
Will AI replace insurance agents?
AI's impact on agents and agent compensation
Today, many wonder if AI will replace insurance agents. It's not likely, but agents' roles will undoubtedly change. As agents take on more of a financial advisory role, consumer perceptions will shift away from the conventional view of agents as merely salespeople.
How does Progressive use AI?
It leverages significant creative variation for AI to learn, providing real-time AI decision making via data signals and generating cohorts on the fly. This advanced approach ensures a more efficient and effective marketing strategy.
How does AI affect health insurance?
AI's uses in health insurance processes have a wide variety of potential benefits, including improving care delivery, quality, and overall consumer experience.
How AI is used in policy making?
AI can also directly provide inputs and suggestions to policymakers in real time. For example, in China, machine learning algorithms built by the Chinese Academy of Sciences have been used in providing inputs and offering recommendations on foreign policy to policymakers.
What is the future of AI in 2030?
By 2030, he foresees AI dramatically enhancing robots' autonomy and capabilities. "Robots will reach advanced levels of autonomy, making high-level decisions with minimal human input while collaborating and learning from each other," Loianno states.
How big is the generative AI in insurance market?
The generative AI in insurance market size has grown exponentially in recent years. It will grow from $1.08 billion in 2024 to $1.51 billion in 2025 at a compound annual growth rate (CAGR) of 39.8%.
What industry will boom after AI?
Data center service providers, building companies and other ancillary industries will also benefit. 3) Energy and Power Solutions: AI models require massive energy resources, driving companies to develop innovative power solutions.
What kind of jobs will AI replace?
Jobs that are most likely to be automated by 2030 include cashiers, telemarketers, data entry clerks, and customer service agents. Advances in AI's data analysis and decision-making capabilities could potentially affect even some white-collar jobs, such as legal assistants and financial advisors.
Which industry uses AI the least?
- Health Care: Nurses, doctors, therapists, and counselors.
- Education: Teachers, instructors, and school administrators.
- Creative: Musicians, artists, writers, and journalists.
- Personal Services: Hairdressers, cosmetologists, personal trainers, and coaches.
How is AI used in insurance?
AI has the potential to impact the insurance industry in multiple ways. It is currently used in marketing, pricing, underwriting, claims processing, fraud detection, customer service, and to increase internal operational efficiencies.
What are the risks of AI in insurance industry?
Copyright violations and/or patent infringement as a result of leveraged training data or from the AI model itself could result in claims in liability coverages. Increased use of AI in healthcare diagnostics could change insurance demand, but also give rise to potential gaps in coverage.
Is generative AI a threat?
As generative AI models become more sophisticated and valuable, they themselves become targets for theft and reverse engineering. Attackers who gain access to these models could use them to create their own competing systems or, more dangerously, to find and exploit vulnerabilities in AI-powered systems.
Will insurance be replaced by AI?
Rather than replacing insurance agents outright, AI is poised to complement and enhance their roles, enabling them to deliver more personalized and value-added services to clients in an evolving digital landscape.
How much do you pay for AI?
However, organizations can still pay for commercial enterprise AI platforms, tools, and services to accelerate model development, deployment, and management. As for subscriptions, the typical AI software cost will depend on the level of functionality and support required. It ranges from $1,000 to $100,000 per month.