Weekly news and insights on AI's impact across the (re)insurance sector

This week in AI, the focus shifts from early adoption to strategic integration across the insurance value chain. Reports from Gallagher Re and Coverager show how AI is redefining property reinsurance and elevating underwriters to strategic advisors, moving beyond simple task automation. This progress is coupled with new challenges, as other articles highlight the critical need for robust governance to manage emerging threats like “Shadow AI” and call for industry collaboration to handle systemic risks. Finally, case studies from major carriers and the launch of new services to insure AI-related risks demonstrate both tangible efficiency gains and the maturation of the market.

Correctly identifies that the true value of AI in underwriting isn’t about replacement, but empowerment. Shifting underwriters to proactive, data-driven decision-making is the most critical strategic adjustment carriers need to be making today.

The reinsurance market’s adoption of AI for dynamic risk assessment and capital optimisation is a bellwether for the broader industry. The move from static to real-time, data-driven models is essential for managing profitability in an era of heightened climate-related risks.

The concept of “Shadow AI” represents a significant and often overlooked cyber threat. Brokers and underwriters must now explicitly address clients’ AI governance, as unsanctioned AI use creates new, unpriced vulnerabilities within organisations.

The industry has long been hampered by data silos; with AI, this is no longer a competitive hurdle but a fundamental risk management failure. Collaborative data initiatives are essential for accurately modelling and underwriting the systemic risks that AI introduces.

This article highlights a key operational reality: AI is reshaping career paths within insurance. The evolution of roles like the underwriting assistant demonstrates that efficiency gains are directly tied to workforce development and upskilling.

The statistic that 46% of a claims professional’s time is spent on routine tasks is a stark reminder of the immense efficiency gains available. In a line of business like workers’ compensation, this translates directly to better outcomes for injured workers and improved loss ratios.

The convergence of AI with other technologies like IoT and blockchain is where the next wave of disruption will occur. Insurers need to think beyond siloed AI projects and consider the entire tech ecosystem.

Aon’s new program signals the maturation of the AI market; the risks associated with AI development, particularly IP, are now a distinct and insurable class of business. This is a critical development for the tech and insurance sectors alike.