The world of artificial intelligence (AI) continues to evolve rapidly in 2025, with generative AI reshaping the insurance industry -- everything from broker management, underwriting and risk assessment to claims processing and customer service. The new slate of AI offerings come at an opportune time for insurance companies as they face rising customer expectations for personalized, digital-first experiences and rapid resolutions. Many insurers struggle to meet these demands, hindering their ability to deliver the level of service required to retain customers and compete effectively.
To best understand how AI can help with the challenges and opportunities the insurance industry is faced with today, let's start with a look at processes. We've all seen the business workflow charts that depict a process moving cleanly from task to task – it looks so nice, so smooth. However, for insurance companies, the harsh reality is that a workflow more often resembles a maze than a straightforward sequence. A common claim, for instance, requires coordination with policyholders, brokers, third parties, and internal analysts and is compounded by stringent regulatory compliance requirements and security protocols.
The insurance workflow relies heavily on manual tasks and human verification – ripe for errors and costly delays – but well suited for AI solutions to improve the process. AI can help improve productivity and efficiency by deploying this technology alongside insurance industry knowledge workers, such as underwriters, actuaries, claims adjusters and engineers. Efficiency benefits can result from leveraging AI to summarize and synthesize the large volumes of content gathered during the claims lifecycle, including call transcripts, notes, and legal and medical paperwork, which is particularly useful in property and casualty insurance.
AI can also help improve experiences for customers, agents, agency staff members and employees by deploying a Gen AI virtual assistant or virtual agent. For example, individualized and empathetic human interactions become easier for insurance professionals when Gen AI removes mundane processes from their workload.
Lastly, AI can help manage compliance and mitigate risks, which are key concerns in this highly regulated industry. Automated compliance monitoring, fraud detection are ideal uses for AI in the insurance industry.
Getting started with AI for insurance process automation
The best way to get started with AI is to identify the core insurance processes that still rely heavily on manual tasks—such as analysts handling repetitive work —particularly those involving document verification and analysis, data entry across multiple systems, and constant communication with customers, brokers, and third parties. Assess the current performance of these processes and set clear performance goals for when automation solutions are implemented.
Engage stakeholders from all departments to align on priorities and ensure a smooth change management process. Define KPIs to measure the success of automation initiatives, such as reduced cycle times, Full Time Equivalents (FTEs) saved, and improved customer satisfaction scores. Finally, consider launching a pilot project in a high-impact area to achieve quick wins and generate internal momentum and buy-in for using AI in your organization.
By strategically implementing AI solutions into their workflows, insurers can unlock a future of more streamlined operations, empowered employees and delighted customers.
