AI is rewriting what’s possible in insurance, from smarter workflows to more intuitive customer experiences. Here are summaries of the latest news and insights to help keep industry leaders in touch with the next wave of intelligent innovation.
Latest Articles as of December 4
News: A NY appellate court decision limits insurers’ authority to deny no-fault claims
The root of it: New York’s Court of Appeals ruled 6–1 that insurers cannot unilaterally deny no-fault claims based on alleged provider misconduct. Only state regulators, such as the Board of Regents, have the authority to make those determinations. The case involved a $390,000 kickback scheme tied to $4.9 million in acupuncture bills. Insurers can still employ remedies such as challenging medical necessity and reporting suspected provider fraud to regulators, but they must route most misconduct concerns through the state's process.
News: Embedded insurance projected to be a trillion-dollar market by 2033
The root of it: The embedded insurance market is now forecast to reach about $1.1 trillion in global gross written premiums (GWP) by 2033, or roughly 15% of the total global GWP figure. This is a dramatic upward revision from prior forecasts of approximately $700 billion in GWP by 2029, reflecting strong growth in auto insurance sold at the point of purchase. This suggests that embedded insurance is rapidly evolving into a significant growth engine for insurers, insurtechs, and other ecosystem partners.
News: Record flooding in Thailand disrupts auto parts and tech supply chains
The root of it: Thailand’s worst-ever southern floods have killed more than 180 people and crippled key logistics hubs, halting exports of auto parts and tech components. Hat Yai, a crucial commercial and transport gateway, is effectively cut off, with roads submerged and rail services suspended. Authorities warn exporters “simply cannot move their shipments,” risking lasting damage to Thailand’s role as a regional supply hub as buyers shift to suppliers based in Indonesia and Vietnam.
News: NYC Comptroller’s report highlights the hazards and impact of e-delivery services
The root of it: New York City Comptroller Brad Lander’s “Fast Shipping. Slow Justice” report links booming e-commerce and last-mile e-delivery services to rising motor vehicle incidents, worker injuries, and pollution. After these distribution centers open, vehicle-related injuries nearby rise by 16%, truck crashes increase by 146%, and warehouse incident rates exceed three times the national average. Roughly two-thirds of the facilities sit in Environmental Justice Areas, concentrating risks in already vulnerable neighborhoods.
News: What can be done about those “meticulous” AI rental car inspections?
The root of it: Hertz’s rollout of AI-powered vehicle inspections has sparked outrage, with renters reporting that they have been billed hundreds of dollars for minor or invisible "damage" that was previously considered acceptable wear and tear. The article’s author contends the problem isn’t the technology, but how it’s used. With improved transparency, human-in-the-loop reviews, and clear communication of what constitutes billable damage, this powerful tool could deliver consistent, objective vehicle condition records to benefit insurers, service shops, and future renters.
News: “The ultimate [impaired] driving machine?” – BMW owners top DUI list
The root of it: A recent study conducted by a criminal defense/personal injury law firm shows that BMW drivers receive the most US drunk-driving citations – over three per 1,000 drivers – with other high-end vehicle makes also topping the list. A spokesperson for the study’s sponsor notes that these brands appear more frequently in DUI data, aligning with a University of California study finding that drivers of luxury vehicles stop less often for pedestrians.
Read our 2025 State of AI Adoption in Insurance Report for insights and perspectives on AI adoption from more than 240 insurance executives.