Generative AI Revolutionizes P&C Insurance with Promising and Complex Future

Generative AI (GenAI) is reshaping the property and casualty (P&C) insurance landscape, with 59% of large insurers experimenting with its applications, from underwriting to claims. McKinsey highlights GenAI’s potential to unlock up to $1 trillion annually for the industry, signaling a major shift towards operationalizing this technology.

However, insurers face hurdles including GenAI-enabled fraud, regulatory scrutiny, and the practicalities of integrating AI into existing systems. Despite these challenges, the technology’s promise of enhanced human productivity and competitive advantage is driving a pragmatic approach to adoption. Insurers are focusing on cloud-based infrastructures and governance to leverage GenAI effectively, recognizing the need for human expertise in harnessing its full potential.