4:32 26 September 2025
AI reshapes insurance sector
Artificial intelligence is steadily reshaping the insurance industry, according to a new report by Economist Impact in partnership with SAS. While not yet a revolution, AI already boosts productivity, especially in underwriting, claims handling, and customer service. Companies are testing AI agents—autonomous systems able to perform complex tasks—pointing toward a model of human–machine collaboration.
The report highlights three key insights: AI’s impact is evolutionary, not disruptive; efficiency gains often fund new tools and training rather than cost-cutting; and organizational agility is vital as regulation and technology evolve. Generative AI accelerates software development by 30–50% and supports real-time analysis of climate and cyber risks, though adoption varies, with insurtechs leading.
Industry leaders from firms including Zurich, Tokio Marine, and Manulife stress that while AI can handle repetitive, data-driven work, human oversight remains crucial for advanced risk modeling and decision-making.
