AI is moving fast – don’t let the insurance industry fall behind. The list of articles below brings you the most important updates, use cases, and innovations in AI, curated for insurance professionals who want to stay ahead.
Latest articles as of August 21
News: AI-powered predictive analytics is a powerful weapon against “nuclear verdicts”
The root of it: AI is carving out an increasingly high profile in the data-driven defense against “nuclear” jury verdicts. As explained by the liability lead at a top 5 third-party administrator (TPA), predictive analytics can help insurers’ by modeling trial outcomes, guiding attorney and expert selection decisions, and spotting risky claim patterns. Early identification – within the critical first two weeks – paired with high‑caliber defense, mock trials, and analytics‑driven workflows can help insurers preempt historically large verdicts.
News: AI transformation leader shares proven strategies for implementing and scaling AI
The root of it: Insurers can accelerate AI adoption by engaging legal and compliance partners early, setting clear pilot success metrics, and empowering internal champions. A Guardian case study highlights how the carrier used gen AI to cut underwriting review time by 50%. Best practices applied from proof-of-concept through full deployment into production enabled faster rollouts and better ROI evaluation, fostering greater team member confidence in AI while positioning insurers to drive long-term value and innovation.
News: “Old dogs/new tricks?” – insurance’s AI transformation keeps pace with other industries
The root of it: A recent Arizent/Digital Insurance survey reveals insurers are embracing AI to boost efficiency, automate workflows, and enhance productivity. Despite our industry’s reputation for being slow to adopt digital technologies, 82% of insurers use Generative AI – more than any other industry surveyed. Additionally, 84% of insurance businesses have experienced positive ROI from AI, outpacing sectors like banking and accounting.
News: Legislators revive the push to create a federal reinsurance program
The root of it: California Senator Adam Schiff has reintroduced the Incorporating National Support for Unprecedented Risks and Emergencies (INSURE) Act, calling for the creation of a federal catastrophic reinsurance program. Backed by $50 billion in federal funding, the Act seeks to cap insurer liability above a set loss threshold. Other provisions in the bill include mandates for insurer investments in loss mitigation and oversight by federal and state regulators. The insurance industry opposes the measures, citing concerns about taxpayer burden and misalignment with the key drivers of insurance premium inflation.
News: Euro market “AI adopter” giants show vulnerability as AI transitions from hype to reality
The root of it: European companies long viewed as AI frontrunners – including SAP, Dassault Systèmes, and Capgemini – have seen steep declines in their stock prices since mid‑July, as the launches of OpenAI’s GPT‑5 and Anthropic’s Claude for Financial Services cast doubt on their ability to fend off more powerful AI models. Their lofty valuations intensify investor skepticism as AI business solutions transition from hype to reality.
News: Meanwhile, markets elsewhere anticipate a sustained AI-driven boom
The root of it: Emerging Market (EM) funds are shifting over to AI assets, led by tech players like Foxconn, TSMC, Tencent, Alibaba, Samsung, SK Hynix, and Xiaomi, which account for 37% of this year’s EM stocks rally. Analysts anticipate AI‑related stocks could drive up to one‑third of returns over the next decade as tech earnings outpace broader market forecasts, with Taiwan and South Korea leading the pack.
News: Claude AI is getting sick and tired of your abuse and doesn’t have to take it anymore
The root of it: Anthropic has added a safeguard to Claude Opus 4 and 4.1, letting the AI [tactfully] end conversations in rare cases of persistent abuse from users. Part of the company’s “model welfare” research, this protects AI systems from toxic interactions while still staying engaged in sensitive cases involving user self-harm. This move could signal how future virtual agents in insurance might manage exchanges with angry customers more safely and sustainably.
News: Young motorists flock to safe-driving app to cut premiums (and boost social clout...)
The root of it: South Korea’s Tmap Mobility app gamifies safe driving with public “Driving Scores” based on speed, braking, and cornering. Participating drivers turn safety into a friendly competition by sharing their best results on social media – hopefully not while behind the wheel. With over 10 million drivers out of 19 million users qualifying for insurance discounts, Tmap claims the platform has contributed to nationwide safety gains by preventing 31,366 crashes from 2018–2020.
Latest articles as of August 14
News: Insurtech investment since 2012 surpasses $60B
The root of it: Since 2012, $60.8B has flowed into Insurtechs, with 25% aimed at AI-driven firms, per figures compiled by Gallagher Re. Despite rapid funding growth early on, investment has slowed since 2021. The report’s authors urge a deeper AI focus, calling the technology a “significant competitive differentiator for property reinsurers.” Investment in Q2 2025 saw mixed results, with P&C funding hitting a seven-year low, while investment in the Life and Health sectors nearly tripling, signaling shifting priorities in AI adoption.
News: Overall investment in AI makes Insurtech funding seem like a drop in the bucket
The root of it: Insurtech investment has ballooned since 2012, but AI attracts far greater capital investment – $1.6 trillion globally, since 2013, per a Stanford University study. For Insurtechs to remain relevant in an AI-driven future, they must invest in critical areas, including scalable data infrastructure and governance frameworks. Without the ability to manage vast datasets, Insurtech businesses risk being outpaced not just in funding, but also in long-term innovation and impact.
News: Chubb CEO and others escalate the war against insurance litigation funders
The root of it: Evan Greenberg, CEO of Chubb, doubled down on his longstanding campaign against third-party litigation funders, urging financial firms and brokers to reconsider ties with such groups due to their impact on insurance settlements. Christopher Bogart, CEO and co-founder of Burford Capital, one of the world’s largest litigation funders, pushed back, calling Greenberg's stance “inappropriate” and potentially “anti-competitive.” In a joint op-ed penned with John Doyle, CEO of Marsh McLennan, Greenberg decried the funding firms' pursuit of ROI from litigation, as others emphasized the need for aggressive reform to reduce legal costs and complexity.
News: Microsoft hints at its "goals-based interaction / WindowsOS-as-AI-agent" future vision
The root of it: Microsoft recently announced “Windows 2030 Vision,” outlining a potential shift toward agentic AI as the core of its tentpole operating system. The company’s VP for Enterprise and OS Security, David Weston, suggests that future Windows versions may move beyond mouse-and-keyboard input, enabling users to express goals while the OS handles tasks autonomously. Multimodal interaction – using voice, vision, and context –would support this model, with AI agents also managing security and other background functions.
News: GPT-5’s capabilities include clever rhetorical flourishes – that it conjures on its own.
The root of it: Ethan Mollick, a U Penn/Wharton professor studying AI in work and education, highlights OpenAI’s newly released GPT-5 chatbot’s ability to perform creative, multi-step tasks with minimal prompting. Per Mollick, GPT-5 not only picks the right models automatically – deciding when to “think hard” – but also initiates complex actions, like writing code, business plans, and simulations. The model's results often surprise users – not randomly, but through its useful initiative.
News: OpenAI usage plummets 70% overnight as students hit “pause” on homework cheating during summer break
The root of it: ChatGPT usage tanked 54% when schools let out in May – falling from 79.6 to 36.7 billion tokens daily in June. Similar weekend dips during the school year point to heavy usage by students looking for “help” with their coursework. Rutgers University research into user behavior patterns backs this up, raising fresh questions about how AI fits into education – and whether it’s helping or hurting learning.
News: Who falls for these hokey AI-generated classic rock memes – and why?
The root of it: AI-generated images of aging rock legends – like Bruce Springsteen comforting healthcare workers or Mick Jagger, Elton John, and Rod Stewart harmonizing at Ozzy Osbourne’s memorial service – are little more than feel-good fiction going viral. While some embrace the nostalgia, this form of emotional manipulation feels inauthentic, which angers many rock fans. Others raise concerns about emotional manipulation used to exploit vulnerable people’s sentimentality.
Latest articles as of August 7
News: US Department of Energy report challenges insurance’s fundamental position on climate risk
The root of it: A new US Department of Energy report challenges foundational assumptions used by insurers in modeling future extreme weather – claiming historical data show no clear long-term trends in hurricanes, floods, droughts or tornadoes. This contradicts anticipated annual growth in catastrophe losses forecasted by Swiss Re and others and raises tension between federal climate findings and the industry’s practices around analyzing and predicting insurable risks.
News: Is commercial insurance experiencing a “soft market under stress”?
The root of it: Aon’s Q2 2025 Global Market Insights report warns that today’s buyer-friendly commercial insurance market may be short-lived. Despite soft pricing and ample capacity, systemic risks – among them, cyber threats and geopolitical instability – loom large. The report urges insurers to act strategically now, optimize capital, and adopt a “total cost of risk” mindset before market volatility and loss events tighten conditions, especially for “challenging” US casualty and auto lines.
News: If you want to make AI smarter, try asking it “dumb questions”
The root of it: Anthropic cofounder Jared Kaplan argues that asking naïve or “dumb” questions – like “How much data is enough?” – has led to foundational breakthroughs in AI, including the discovery of scaling laws linking model size, computing power, and performance. This mindset underpins Anthropic’s Claude Sonnet 3.5 model, especially in AI-assisted coding, and is central to Anthropic’s successful product development and rising market valuation.
News: Explosive growth of hydrogen economy a potential $3 billion boom for insurers
The root of it: Allianz Commercial projects a $3B insurance market by 2030 in response to a projected 700% global surge in hydrogen initiatives. Unique risks for this market – flammability, leakage, and metal embrittlement (caused by the introduction of hydrogen into molecular microstructures) – call for innovation of specialized coverages across energy, transport, and marine sectors. In response, insurers must evolve offerings to support hydrogen infrastructure buildouts and operations, particularly in energy/natural resources, liability, and construction lines.
News: First half 2025 surplus lines premiums rise 13.1%
The root of it: US surplus lines premiums reached $46.2 billion in the first six months of 2025 – up 13.2% year‑over‑year – according to data from 15 state stamping offices (the regulatory bodies that oversee surplus lines insurance transactions). Growth was led by liability lines, with non‑professional liability comprising 36.9% of total premium (up 11.3%) and property lines up 11.0%. Auto liability surged 61.1%, though it remains a small 4.2% slice of the E&S market.
News: Pro tip: Don't count on AI chatbots to keep your secrets
The root of it: OpenAI CEO Sam Altman cautions against using chatbots like ChatGPT as “therapists,” or confidants, citing potential emotional harm and lack of legal privacy protections. He expressed concerns that, unlike licensed therapists, OpenAI could be compelled to share chat logs in lawsuits. Despite some users forming deep "bonds" with AI, Altman stresses that chatbots were not designed for mental health support.
The root of it: The US Department of Transportation unveiled proposed rules to eliminate individual waivers for Beyond Visual Line‑of‑Sight (BVLOS) drone operations. This framework could enable routine drone delivery of goods – think Amazon packages or Starbucks coffee – below 400 ft altitudes, with applied safety and security protocols. While drone manufacturers praise this as needed deregulation, lawmakers and state officials have expressed public security and safety concerns. (Presumably, insurers and risk managers will have thoughts of their own on the decision.)
Read our 2025 State of AI Adoption in Insurance Report for insights and perspectives on AI adoption from more than 240 insurance executives.