New Economist Impact report finds AI is reshaping insurance - gradually

Global industry leaders foresee a workplace where humans, AI agents collaborate

CARY, N.C., Sept. 18, 2025 /PRNewswire/ -- Insurance leaders are beginning to see artificial intelligence (AI) move from hype to real-world impact, according to a new report from Economist Impact and sponsored by SAS. The research finds that emerging technologies such as generative AI haven't yet transformed the industry, but they are demonstrating gains in productivity.

And insurance leaders see a major role in particular for agentic AI – autonomous systems capable of performing even complex tasks almost independently – suggesting that the insurance firm of the near future might feature a hybrid workforce in which human agents and AI agents work hand-in-hand on tasks such as underwriting, product development, claims processing and more.

"Insurers' workforces will become hybrids of human employees and agents collaborating closely, with some agents working largely independently under human oversight," said Jodie Wallis, Global Chief Analytics Officer at Manulife, one of the executives whose expertise shaped the report's findings.

AI creating value, if not always increasing profits yet
Underwriting the Future: The role of artificial intelligence in insurance draws on insights from global insurance executives gathered through roundtable discussions and in-depth interviews. The report builds on Revealing the paths to 2040: Global insurance survey report, a study released in February that polled over 500 executives from 17 countries on the future of insurance.

Citing insights from experts representing Zurich North America, HDI Global, Tokio Marine and Manulife, the new report reveals a sector cautiously optimistic about AI's potential to drive productivity, improve risk modeling and close the global protection gap. But the execs also acknowledged the structural, cultural and regulatory hurdles that remain. The report identifies three key takeaways:

1. The benefits of AI so far have been more incremental than transformational. While AI has long played a role in underwriting and fraud detection, recent advances in generative AI have sparked increased investment and board-level attention. Executives report that GenAI is speeding up coding workloads by 30% to 50%, streamlining customer service operations, and enabling real-time analysis of cyber and climate risks. But adoption is uneven across the industry, with insurtechs the furthest along with AI-integrated systems (particularly those in cyber insurance), while companies relying on legacy systems have moved more slowly. Many insurers are still tailoring AI to specific use cases rather than deploying it at scale.
   
   
2. Productivity gains from AI are not always translating into immediate cost savings. Rather than eliminating jobs, insurers often reinvest freed-up resources to build new tools or manage higher claim volumes. Companies also must train employees for roles that humans can perform better than AI – sales, for example – which takes time and doesn't pay off immediately. Another positive aspect is the implementation of comprehensive agentic AI platforms, which enable insurers to adapt such agents more quickly to their changing needs and be less dependent on long-term, monolithic software projects. There's another reality in play too: AI investments are already moving from being a competitive differentiator to something insurers think of as table-stakes in the industry.
   
   
3. Organizational agility is essential. Technology, governance and regulatory requirements around AI are changing fast. Insurers need to adapt their systems and processes and prioritize change management. Even so, the wide variance in regulatory requirements from one country to the next presents a challenge for global firms in particular.

"When we talk about the capabilities of AI agents today, it's easy to get the impression that these agents can already perform all kinds of complex tasks. However, that is not yet the case," says Thorsten Hein, Principal Global Insurance Advisor at SAS. "The greatest value for AI agents is in repetitive and data-intensive tasks, especially when orchestrated with other AI agents. However, some elaborate tasks, such as calculating complex risk models, still require integration with specialized industry solutions and human expertise.

"One thing has not changed: Data is and will remain indispensable, especially when it comes to AI. In order for insurers to unlock the full potential of data and the AI that uses it, they not only need to have high-quality data available, but also to combine it promptly and efficiently with other relevant information and data points."

Looking ahead
So what does the future of insurance on AI look like? The industry is accelerating its adoption of the technology. While it may not have produced a revolution yet, insurers are continuing to invest and find new uses – if only to keep pace with the competition.

"Insurers recognize the value of AI, and we're seeing a range of use cases being identified and piloted," said Franklin Manchester, Principal Global Insurance Advisor at SAS. "AI – particularly agentic AI – has the potential to perform many tasks either independently or with human oversight. This should eventually mean faster service, lower costs and employees who are able to spend their time on work where they also contribute more value."

About Economist Impact

Economist Impact combines the rigour of a think-tank with the creativity of a media brand to engage a globally influential audience. We believe that evidence-based insights can open debate, broaden perspectives and catalyse progress. The services offered by Economist Impact previously existed within The Economist Group as separate entities, including EIU Thought Leadership, EIU Public Policy, Economist Events, El Studios and SignalNoise.

Our track record spans 75 years across 205 countries. Along with creative storytelling, events expertise, design-thinking solutions and market-leading media products, we produce framework design, benchmarking, economic and social impact analysis, forecasting and scenario modelling, making Economist Impact's offering unique in the marketplace. Visit www.economistimpact.com for more information.

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