AI in Insurance: What Every Finance Leader Should Know

Insurance companies are using AI more than most people realize. A recent WGLT report breaks down what US insurers are actually doing with AI right now, and the lessons apply directly to finance leaders here in Asia Pacific.  

AI adoption in insurance is already widespread, it is making teams modestly more productive today, it could make them a lot more productive later, and it is changing what jobs look like more than it is eliminating them. Companies that keep a human in the loop are winning more trust than those that do not.

1. AI Adoption Is Already Everywhere

A survey of insurance regulators across 16 US states found that most insurers are already using AI, or are actively planning to:

• 84% of health insurers 

• 88% of auto insurers 

• 70% of homeowner insurers 

• 58% of life insurers

  
  

This has been building for four to five years, according to Gunratan Lonare, a professor at Illinois State University's Katie School of Insurance and Risk Management. In other words, this is not a new experiment. It is already normal.

2. What AI Is Actually Doing: Catching Problems Before They Happen

Pete Miller, CEO of the Institutes Risk and Insurance Knowledge Group, summed up the big shift in one line: insurers are moving “from kind of a detect-and-repair sort of approach to a predict-and-prevent approach.”

Instead of waiting for something to go wrong and then fixing it, AI helps companies spot warning signs early and act before there is a problem. Think of it like a smoke detector instead of a fire truck.

This same idea applies to finance broadly. Whether it is fraud detection, credit risk, or underwriting, the goal is the same: use data to see trouble coming instead of cleaning up after it arrives.

3. The Productivity Gains So Far Are Small, but Real

Julia Lamm, a workforce expert at PwC who works closely with insurers, says her clients are seeing productivity go up by 4 to 5 percent from everyday AI tools like chatbots and writing assistants. That is a modest but genuine gain, mostly from saving time on writing reports and looking things up.

The bigger prize, AI that actually redesigns how a task gets done, is still a work in progress for most companies. Lamm explained why in one honest quote:

“Most of our clients are now going, 'OK, wait, I turned on this agent, but I'm not getting the full power of what I thought it would uplift,' because I didn't actually reimagine the work, rethink roles and do all the org design around that.”  — Julia Lamm, PwC

buying an AI tool is not enough. If you do not also change how your team works around it, you will not see the full benefit. This is true whether you are in insurance, banking, or marketing. Lamm's team estimates that once companies do this properly, capacity gains could reach 25 to 50 percent, but only for organizations willing to redesign roles, not just add a new app.

4. AI Is Reshaping Jobs, Not Wiping Them Out

US government projections cited in the report show a mixed picture through 2034: 

• Claims adjusters and examiners: down about 5%

• Insurance underwriters: down about 3%

• Actuaries: up about 22%

• Data scientists: up about 34%

• Computer and IT roles: growing faster than average

  
  

Some roles shrink a little, but roles that involve analyzing data and building AI systems are growing much faster. Lamm said most of her clients are not using AI purely to cut headcount. Instead, they are redirecting the savings toward growth. Her words: “We want to redeploy that… to help us grow and enter new markets.”

5. The Companies Doing This Well Keep a Human in the Loop

Two US insurers featured in the report, State Farm and Country Financial, both make a point of keeping people involved, not replaced. State Farm's Chief Digital and Information Officer, Joe Park, said it simply:

“Technology earns its place when it makes the experience better for the people on the receiving end.”  — Joe Park, State Farm

State Farm calls its approach “Human + Digital”: AI handles the paperwork and speed, while a person still explains the options and makes the judgment calls. Country Financial takes the same stance, saying “human judgment, empathy and trust remain critically important in insurance,” even as it rolls out AI tools to help staff find information faster. 

PwC's Marie Carr summed up why this matters for adoption, not just ethics: people trust AI more when it feels like a helpful assistant, not an autopilot making decisions behind closed doors. That trust is what determines whether staff and customers actually use the tool.

What This Means for You as a Finance Leader

Here is the practical takeaway:

• AI in your industry is probably further along than you think. If competitors are not talking about it, they are likely already using it quietly.

• Do not expect big wins just from buying a tool. The real gains come from also changing how the work gets done.

• Plan for role changes, not job cuts. Invest in reskilling your team toward data and analytical work rather than assuming AI means fewer people.

• Keep a human in the loop, especially for anything customer-facing. It builds trust and it is what the most successful companies are doing.

  
  

We will be unpacking exactly these questions with finance and risk leaders at financeX, rockbird media's Xchange Conference series for finance transformation leaders across Asia Pacific. If you are trying to figure out where AI actually fits in your risk, underwriting, or client service workflows, this is the room for that conversation.

For a closer look at how AI is changing data and analytics work more broadly, see our related coverage on dataAIX.

Source: Charlie Schlenker, “AI is already penetrating the insurance industry,” WGLT, August 3, 2026.