From the earliest days of actuarial tables to today's advanced risk modeling, insurers have relied on data to determine value at risk and serve their policyholders. That's why — according to Kyndryl's recent
Meanwhile, 71% of insurance employees are embracing AI, compared to the global average of 64% across all industries. These figures reveal more than technological momentum — they reflect a deeply embedded people-first culture within the industry.
Bridging workforce readiness gaps
Despite high rates of AI adoption, 70% of insurance leaders believe their workforces must leverage AI more effectively, and that there is an urgent need for strategic upskilling.
At the same time, they are turning to IT services providers to see how their legacy IT systems can be modernized to support AI at scale. One emerging approach is the use of agentic AI frameworks, systems designed to deploy intelligent agents that can adapt to shifting business demands while keeping people at the center of transformation.
Applying AI today and tomorrow
Every insurance policy is a promise to protect. Whether underwriting lives, homes, companies or cars, insurers are in the business of protecting people — and AI is becoming an integral part of that process. Industry leaders understand that the transformative potential of AI ultimately depends on the underwriters, actuaries, agents and policyholders who interact with it.
For example, smart devices monitor the road behavior of drivers who opt into usage-based auto insurance. This allows drivers who demonstrate safer driving habits to qualify for lower premiums. For insurers, AI enables more accurate risk assessments and pricing. Customers benefit from greater transparency, fairer premium rates, and incentives to drive safely.
But what about tomorrow? AI's potential extends beyond automating processes or reducing costs. It's about challenging assumptions and rethinking how businesses operate to better serve customers. For the insurance industry, that could mean anything from reimagining claims workflows to reinventing risk modeling to develop new products to address the reality of changing global climate patterns.
As fires, floods, and storms intensify due to shifting weather patterns, how do insurers protect both their businesses and their policyholders? AI can play a critical role in helping insurers develop nuanced, data-driven approaches to risk, enabling more precise decision-making while safeguarding the long-term viability of the insurance ecosystem.
Putting people at the center
To assist people more effectively, AI must be trained with reliable and unbiased data. In parallel, we must encourage an environment of continuous learning and ethical governance. Absent these two streams coming together, even the most advanced AI models will fall short of their potential.
Already ahead of the curve in AI adoption, the insurance industry is poised to continue its tradition as a leader in harnessing the power of sophisticated technologies — serving and protecting policyholders.
