Insurance in the AI era

AI in insurance is no longer a question of if, but where it truly creates value.  While most carriers have focused early efforts on efficiency (with ~40% of AI spend targeting cost reduction and operations), the real shift is now underway:  AI is moving from optimization to reinvention.  Yet, a key complication remains: customer expectations are evolving faster than many AI deployments.  75% of executives expect AI to drive personalization as well as cost savings, but misalignment with customer expectations risks eroding trust rather than building it.

From an IBM perspective, the implications are clear.  First, agentic AI is accelerating impact across core functions; call center, policy administration, claims, and underwriting/new business, with measurable gains (≈19% faster claims processing, ~15% faster product development).  Second, growth will favor insurers who pivot from internal efficiency to customer-centric design, closing the gap between what firms build and what customers actually value.  Third, foundational constraints, technical debt and talent gaps (impacting >80% of insurers), are now strategic roadblocks and are no longer just IT issues.  To explore this topic further, check out IBM’s latest research here.

Bottom line: the winners in the AI era will not be those who adopt AI fastest, but those who modernize core systems, align AI to enhance customer experience, and scale responsibly. Efficiency is common, reinvention is the market differentiator.

To discuss this further with IBM, please contact:

Lawrence.Krasner@IBM.com or Mark.Christman@IBM.com

@Lawrence Krasner, @Mark Christman, @GIRISH RATNAM