Insurers Turn to AI for Smarter Operations and Long-Term Strategic Gains

Artificial intelligence is starting to deliver tangible benefits across the insurance industry, with early adopters seeing improvements in underwriting efficiency, claims processing, and risk monitoring. A new report from Economist Impact, supported by SAS, highlights how carriers like Zurich North America, HDI Global, Tokio Marine, and Manulife are leveraging AI to automate tasks, streamline customer interactions, and manage fast-evolving risks such as cyber threats and climate change.

One of the most significant trends is the emergence of "agentic AI"—autonomous systems capable of performing complex functions with minimal supervision. Executives foresee a near-future industry model that blends human workers and AI systems, reshaping talent needs and organizational structures. However, while productivity is on the rise, cost savings have not yet materialized broadly. Many insurers are redirecting resources toward handling increased claims volumes or investing in AI-related capabilities rather than cutting costs.

Insurtechs continue to lead in AI adoption, particularly in specialized areas like cyber insurance. Meanwhile, legacy carriers are catching up but face challenges in scaling due to outdated infrastructure. As AI moves from a competitive differentiator to a business imperative, traditional insurers feel mounting pressure to modernize.

Finally, regulatory complexity and the demand for clean, reliable data remain ongoing concerns. High-quality data governance is crucial for effective AI modeling, and variations in global regulations force multinational carriers to tread carefully. Still, the industry-wide shift toward AI integration is unmistakable—those who adapt swiftly may gain an edge in pricing, capital deployment, and customer satisfaction.