SuretyScience - Blog #Insurance Market

AI will transform the future of risk faster than insurers can adapt

Mon, 30 Mar 2026 13:17:23 -0400

Futurist Amy Webb

As artificial intelligence reshapes the global economy, insurers face a fundamental shift in how risk is created, measured, and transferred. Speaking at an event hosted by MS Re during Miami Reinsurance Week, futurist Amy Webb outlined why the next decade will demand a new approach to risk.

The session, hosted by MS Re and attended by almost 200 insurance professionals, reflected growing industry focus on how emerging technologies could reshape risk over the coming decade.

Robots with human skin that can feel pain and pleasure, and computers made from human brain cells may sound like something out of a sci-fi movie. But they are already being developed and illustrate how artificial intelligence (AI) could profoundly reshape the insurance industry, according to futurist and founder of FTSG Amy Webb at Miami Reinsurance Week at a talk hosted by MS Re.

The session, hosted by MS Re and attended by almost 200 insurance professionals, reflected growing industry focus on how emerging technologies could reshape risk over the coming decade.

Webb argued that these convergences could have far-reaching implications for the insurance and reinsurance sector.

The prospect of effectively unlimited labour driven by AI, for example, could undermine demand in labour‑dependent products such as workers’ compensation and employment liability, while accelerating disruption across global reinsurance markets. Insurers must begin to develop products that account for the risks associated with AI and machine-driven labor, transitioning away from models that rely on human workforces.

She also warned of increasing demand for computational power, particularly from AI systems, which creates a strain on resources. Insurers need to start factoring in energy reliability and access to power as key variables in their underwriting models. As locations become critical for AI data centres, understanding the implications for re/insurers is vital for future readiness.

Meanwhile, the emergence of what Webb described as “living intelligence”—systems that blend artificial intelligence with advances in biology—could give rise to entirely new categories of loss, forcing insurers to rethink how responsibility and accountability are defined and to develop frameworks to assess and underwrite these unconventional risks.

Steps to future proof business

Webb urged insurers to take a harder look at their reliance on computing power and factor energy and infrastructure constraints more explicitly into underwriting. She also encouraged reinsurers to start modelling the risks associated with living intelligence, while thinking more broadly about how emerging technologies could reshape their future role in the value chain.

“There are three no-regrets moves you could make right away,” Webb said. “First, partner with reinsurers to begin modelling risk in more experimental ways. You could start codesigning guardrails for emerging technologies. Second, pilot frameworks that evaluate how systems sense, decide, learn, and fail. Third, map the future of your value network.”

https://www.intelligentinsurer.com/ai-will-transform-the-future-of-risk-faster-than-insurers-can-adapt-futurist-amy-webb

J.D. Power on Insurance Buying — More Purchasing Digitally

Thu, 12 Feb 2026 17:42:00 -0500

J.D. Power says the number of people purchasing insurance digitally is on the rise. The The Digital Insurance Predictions 2026 survey finds 44% of insurance policy buyers are now getting their insurance via those channels.

On the 1,000 point scale, digital customers are ranking their experience at 801 or even higher, and 92% say they will continue to use digital channels in the future.

The survey had a number of different respondents from various sides of insurance.

33% of responses were agencies and brokerages
18% were P&C carriers
15% were multi-line carriers
12% of respondents were health insurance carriers
7% were life insurers

The Digital Insurance Predictions 2026 survey also asked respondents about how technology is changing their approach to insurance. Many had worries with 53% concerned about cyber security and intelligence tools and 52% expressed concern about Gen AI.

Looking at consumers, the number doing auto shopping rose to 57% in 2025. That’s up from 49% in 2024. The report says higher premium costs has consumers wanting more from insurance companies.

As a counter, 17% of auto insurers now offer usage-based insurance. That’s up from 15% in 2024 but down from 2023 when 22% of auto insurance companies had usage-based insurance as a policy option.

The report noted artificial intelligence is creeping into consumer insurance shopping. J.D. Power’s report suggests insurance companies need pay more attention to how they communicate with consumers and offer them personalized information on their policies and premiums.

https://www.piawest.com/news-releases-and-bulletins/j-d-power-on-insurance-buying-more-purchasing-digitally/

Insurance Broker Stocks Sink as AI App Sparks Disruption Fears

Wed, 11 Feb 2026 20:35:17 -0500

US insurance broker stocks were pummeled Monday as the launch of an artificial intelligence tool from privately held online insurance shopping platform Insurify sparked fears about the industry facing disruption.

The S&P 500 Insurance index closed down 3.9%, in its biggest drop since October. Insurance broker Willis Towers Watson PLC was the worst performer in the group, closing 12% lower and suffering its worst trading session since November 2008. Arthur J Gallagher & Co. followed with a 9.9% decline and Aon PLC fell 9.3%.

“The insurance broker stocks are getting hammered,” Bloomberg Intelligence’s insurance analyst Matthew Palazola said, noting “there could be concerns about the new Insurify tool and Anthropic’s new AI tools.”

The applications “may be a threat to some consulting businesses of insurance brokers though we view them as force multiplier rather than an existential threat,” he added.

Insurify’s app uses ChatGPT to compare auto insurance rates using details about the vehicle, the client’s credit history, driving record and other inputs. The company said the app launched on Feb. 3.

The applications “may be a threat to some consulting businesses of insurance brokers though we view them as force multiplier rather than an existential threat,” he added.

https://www.insurancejournal.com/news/national/2026/02/10/857525.htm

Insurance jobs slashed

Tue, 13 Jan 2026 12:43:00 -0500

Direct life and health insurers cut 1,700

Claims adjusting employment fell by 2,500 jobs from October to November, the steepest decline among insurance segments tracked by the US Bureau of Labor Statistics.

Other insurance categories also reported job reductions over the same period, based on the BLS’ unadjusted industry segment data. Direct life and health insurers posted 1,700 fewer jobs, while direct property/casualty insurers cut 1,500 positions. Agencies and brokerages reported 800 fewer roles, and reinsurers lost 100 positions.

Some segments recorded gains. Pharmacy benefit managers and other third-party administrators added 500 jobs from October to November, the largest increase among the insurance categories measured by the BLS. Direct title and other direct insurance carriers recorded the second-largest increase, adding 300 positions.

The segment-level changes preceded a decline in overall insurance employment in December. The US insurance industry lost 1,800 positions in December compared with the month prior, according to preliminary BLS figures. Total industry employment in December was 3.02 million. The BLS compared that with 3.01 million in December 2024.

While the industry cut jobs in December, the pace of losses slowed from November, when insurance employment dropped by 9,200, according to the bureau.

Across the wider labor market, total nonfarm payroll employment increased by 50,000 positions in December and the unemployment rate remained relatively unchanged at 4.4%, the BLS said.

For 2025, payroll employment rose by 584,000, for an average monthly gain of 49,000 jobs, the bureau reported. In comparison, 2024 saw two million jobs created and an average monthly gain of 168,000.

The BLS reports total insurance payrolls each month on a seasonally adjusted basis alongside nonfarm payroll data. Industry segment figures - including employment across insurance carriers and noncarrier categories - are released separately on an unadjusted basis for the prior month.

Stephen Cooper, executive director and senior economist at the National Council on Compensation Insurance, said job gains in 2025 represented the slowest pace of annual job growth outside of a recession since 2003. Cooper said healthcare and social assistance added jobs during the year, while government jobs declined and manufacturing posted its third straight year of declines.

Cooper said 2025 was a "was a low-hire, low-fire environment where moderating but still solid wage growth offset sluggish employment growth to support overall payroll growth for workers' compensation."

He also said payroll growth was 4.3%, down from 4.6%, adding that payroll growth is a more important measure for workers’ compensation than unemployment data alone.

Separate industry research suggested many insurers still anticipate stable or higher staffing levels. In the third-quarter 2025 Insurance Labor Market Study released Aug. 19 by The Jacobson Group and Aon plc, 86% of insurance companies said they planned to increase or maintain staff levels in the next 12 months, including 53% expecting to add employees and 33% expecting to maintain staffing. Fourteen per cent (14%) reported plans to reduce headcount. The report projected industry employment could rise 1.03% over the next 12 months if carriers follow through on their plans.

The BLS said the January jobs report is scheduled to be released February 6.

https://www.insurancebusinessmag.com/us/news/breaking-news/insurance-jobs-slashed-561625.aspx

Chubb to cut up to 20% of workforce in ‘radical’ AI drive

Fri, 12 Dec 2025 15:59:00 -0500

Company plans to digitize most core functions and redesign workflows as it targets material expense savings

Chubb plans to trim its workforce by as much as 20% over the next three to four years as part of a groupwide digital transformation aimed at automating key insurance functions.

The initiative, outlined in an investor presentation, will roll through roughly 70% of the organization in the next three years as Chubb digitizes business units along with their underlying functions and processes from end to end.

Chubb currently employs about 43,000 people globally, according to its third-quarter company profile.

The company said the program will encompass sales and marketing, underwriting administration and support, claims, finance and other operational areas as it redesigns workflows and systems.

Chubb is targeting run-rate expense savings equivalent to about 1.5 points off its combined ratio once the transformation is in place.

The company’s plans come against a broader backdrop of automation pressure across the sector, with MIT’s Project Iceberg estimating that existing AI tools are technically capable of performing tasks worth 11.7% of total US wage value, or about $1.2 trillion annually.

The research identifies insurance as “squarely in the zone of highest exposure” because many core activities are document-heavy and rule-driven, including underwriting support, policy administration and claims work that can be broken into discrete, automatable tasks.

As part of what it described in the presentation as “radical automation goals,” Chubb aims to automate 85% of its major underwriting and claims processes. The company also expects that 85% of its global gross written premium will be generated by business that is either fully digital or “significantly digitally enabled.”

Other large carriers are pursuing similar strategies, with Allianz planning to cut between 1,500 and 1,800 positions within its travel insurance operations over the next 12 to 18 months as AI reshapes customer and claims processes, a reduction equal to about 6.6%–8% of Allianz Partners’ total workforce.

Taken together, these moves indicate that major insurers are using automation programs not only to change systems but also to reset workforce models in lines of business where digital channels and AI tools can handle higher volumes of routine work.

Data, artificial intelligence and process automation “will be the driving force to achieve growth at low marginal cost,” Chubb said in the presentation.

The company indicated it is positioning these tools at the core of its operating model to scale its insurance business while seeking to keep cost growth in check.

https://www.insurancebusinessmag.com/us/news/breaking-news/chubb-to-cut-up-to-20-of-workforce-in-radical-ai-drive-559950.aspx