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.
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.