Factors Fueling Rapid AI Growth in the Insurance Market

Insurers are expanding the use of artificial intelligence across operations as confidence in its efficiency and accuracy grows. AI is increasingly viewed as a practical tool for reducing workloads and supporting staff functions, especially as advancements accelerate, according to Beinsure.

Edin Imsirovic, director at AM Best, noted during the firm’s Europe Insurance Market & Methodology Briefings in London that AI is becoming more advanced and accessible, with development moving at an exponential pace.

Despite regulatory concerns and uncertainty around implementation, several insurers and brokers are already deploying AI in production environments.

AI’s getting much better, much more useful and much more sophisticated. At the same time, the development of AI is accelerating exponentially.

Edin Imsirovic, director, AM Best

Commercial brokerage Flow Specialty has introduced a network of AI agents that passed industry certification exams and act as high-functioning support tools. Liberty Mutual developed an AI platform that offers weather preparedness advice to homeowners, factoring in property-specific risks and geographic data.

Zurich North America recently appointed a chief data officer to lead the integration of AI across internal systems, demonstrating a strategic commitment to AI-driven transformation.

ACORD Solutions Group Vice President Somesh Mukherjee said improved cost-efficiency, inference quality, and security standards are accelerating the rollout of generative AI tools across insurance workflows.

As the quality, cost of inferencing and security guardrails have matured, I’m seeing more and more applications starting to use gen AI

Somesh Mukherjee, ACORD Solutions Group Vice President

Cyber insurtech firm Coalition uses AI to streamline the underwriting process. Its system enables staff to process large volumes of data quickly, allowing underwriters, claims adjusters, and customer service teams to focus on higher-value work.

According to Coalition’s Chief Revenue Officer Shawn Ram, AI enables staff to shift from repetitive tasks to creative and analytical roles that drive innovation.

Using AI Agents in Insurance

One of the new AI applications involves using AI agents to help brokers with a multitude of tasks.

Flow Specialty said in a statement that its platformless AI model can “take meaningful work off brokers’ plates.”

These AI agents are trained on insurance materials such as specimens, quotes and carrier risk appetites, as well as the ongoing transaction of communication material and critical decision points.

The models are able to cross-reference materials, learn from broker interactions and evolve continuously, Flow said. AI agents can take on tasks such as risk appetite matching, generating quote comparisons and constructing review materials.

Flow said its human brokers are always in the loop, revising and overseeing the output of this workflow engine.

Flow Specialty said its technology is designed to help small and medium business segments that are often overlooked in favor of larger enterprises that yield larger commission dollars.

Flow Specialty said it used agentic AI to develop these AI agents. Agentic AI software is a type of artificial intelligence that uses large language models, machine learning and natural language processing to make decisions and perform tasks independently, according to IBM.

The software can help make decisions and perform tasks without human intervention, according to Salesforce Inc. These systems are able to learn from their interactions and adapt to new situations, improving their performance over time (see AI Promises to Revolutionize P&C Insurance).

Kristen Bessette, who was recently hired as chief data officer at Zurich North America, also spoke about the value of agentic AI, comparing its use to everyone getting an intern to help them do their job. She said those using it can “interact with data naturally, asking questions that pop into their head as they look at data and information.”

AI Enhances Insurance Claims and Underwriting Efficiency

Underwriters and claims adjusters manage large volumes of data to assess risk and evaluate claims. Artificial intelligence is being used to process, summarize, and present this information faster and in a more digestible format.

Generative AI improves access to relevant data across documents and systems, allowing professionals to focus more on analysis and decision-making.

Anthony Habayeb, CEO of Monitaur, explained that AI, as a modeling tool, aligns with the insurance sector’s foundation in modeling systems.

Monitaur supports insurers in managing ethical governance across these systems. Habayeb emphasized that AI allows underwriters and adjusters to condense information from diverse sources efficiently (see Increasing Use of AI Technology Triggers Insurance Claims).

That level of sophistication to route claims to the right place at the right time, rather than use the first-in, first-out methodology, can be an effective use of AI.

Shawn Ram, Coalition

At Liberty Mutual, AI copilots function as virtual assistants. According to Global CIO Monica Caldas, 25% of the company’s employees use LibertyGPT to streamline tasks, improve productivity, and save time.

The tool extracts information from multiple document types and delivers it to underwriters in a consistent format, supporting faster risk selection and pricing decisions.

Liberty Mutual also applies AI to compare documents, such as policy endorsements and regulatory updates.

For example, its crop insurance unit, RCIS, uses AI to detect annual procedural changes in federal documentation, saving analysts significant review time and minimizing the risk of oversight.

Insurtech Turvi developed a generative AI tool focused on the early stages of claims processing. This application directs adjusters to specific policy clauses without the need for manual searches (see How Insurers Can Get Best Results from Artificial Intelligence Tools?).

CEO Kenneth Tolson stated that the engine provides exact citations from policy documents, improving speed and precision. It also evaluates factors like coverage limits, sublimits, and coinsurance, assisting adjusters in making informed decisions.

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FULL Report - https://beinsure.com/ai-adoption-in-insurance/