Artificial intelligence is beginning to deliver measurable, if modest, gains for insurers, according to a new report from Economist Impact.
While AI has not yet overhauled the sector, insurance executives said its influence is becoming clearer in underwriting, claims and risk management.
The study, Underwriting the Future: The Role of Artificial Intelligence in Insurance, sponsored by SAS, drew on insights from executives at Zurich North America, HDI Global, Tokio Marine and Manulife. It found that insurers are using AI to accelerate coding workloads, streamline customer service and enable real-time monitoring of emerging risks such as cyber and climate. These advances, though incremental, are driving investment and drawing board-level attention.
A key theme is the rise of “agentic AI,” systems that can carry out complex tasks with limited oversight. Executives anticipate that insurers of the near future could rely on hybrid workforces, in which human employees and AI agents collaborate across product development, underwriting and claims processing. This shift is expected to reshape staffing strategies and skill requirements across the industry.
Despite the productivity improvements, cost savings have been less immediate. Many companies are redeploying resources to manage higher claims volumes or to build new capabilities rather than reduce expenses. Training employees to complement AI systems, particularly in client-facing roles such as sales, has also required additional investment.
Insurtechs are furthest along in adoption, especially in cyber insurance, while incumbents with legacy systems remain slower to scale AI. Executives said the technology is moving quickly from being a competitive edge to becoming a standard expectation, raising pressure on traditional carriers to accelerate integration.
Regulation is another challenge. Variations across jurisdictions mean global firms must adapt governance structures while ensuring compliance. The report underscores the central role of high-quality data, which is critical for AI-driven risk modeling and decision-making.
The growing reliance on AI signals a structural shift in how insurers operate. Firms that effectively combine human expertise with AI-driven systems may achieve faster claims settlement, more precise underwriting and improved risk selection.
The divide between technology leaders and lagging carriers could widen, influencing pricing, capital allocation and customer expectations. Over time, the ability to deploy AI at scale may determine competitive positioning in both established markets and emerging lines of business.
