Artificial intelligence (AI) is driving real intelligence in insurance, unlocking smarter workflows and frictionless customer experiences. Here are recent stories and insights that offer a clear view of where intelligent innovation is headed.
Latest Articles as of January 8
News: 83% of US consumers would change insurers after a bad claim experience
The root of it: Eighty-three percent of consumers report that they would switch insurers after a poor claims experience, according to Invoice Cloud’s 2025 Consumer Claims Experiences Survey, making claims a decisive loyalty moment. Speed stands out: a separate survey from payments provider Vitesse found 82% of respondents expect payouts within five days, yet Invoice Cloud reports 27% waited over a week, and only 10% were paid within two days. (Forty percent cited time-to-payment as the top claims improvement.)
News: Claims paid for the January 2025 California wildfires top $22B to date
Insurers to date have paid more than $22.4 billion on wildfire claims from the January 7, 2025 Los Angeles wildfires, with 42,121 claims filed and about 94% fully or partially paid, according to the California Department of Insurance. The losses, driven by one of the most destructive fire seasons in the state's history, continue to shape underwriting, rates, and insurer market strategies.
News: A new pilot program lists 17 Medicare procedures now requiring AI pre-screening for approval
The root of it: Starting this month, about 6.4 million traditional Medicare beneficiaries in six states will be included in a CMS pilot requiring AI-assisted prior authorization for 17 outpatient procedures under the Wasteful and Inappropriate Service Reduction (WISeR) model. AI tools will pre-screen requests to cut waste and fraud, with human clinicians making final decisions. Targeted services include knee arthroscopy, skin/tissue substitutes, and nerve-stimulator implants, drawing both criticism and support from providers and lawmakers.
News: Insurers are gearing up to fight generative AI-fueled auto insurance fraud
The root of it: Insurers are facing a sharp escalation in auto insurance fraud as generative AI makes it easy to fabricate convincing claims evidence, from altered damage photos to fully fictitious crashes. As claims automation accelerates, traditional detection methods are struggling to keep pace. The article‘s author contends insurers must counter AI-driven fraud with robust AI-built inspection and verification tools that provide tamper-resistant vehicle evidence while preserving speed and customer experience.
News: Insurer’s survey finds US workers fearful of retribution when calling out workplace safety concerns
The root of it: A Pie Insurance survey finds many US workers stay silent about workplace safety risks due to fear of retaliation, revealing a gap between employer confidence and employee reality. While 91% of employers believe they can address mental health issues, only 62% of employees agree. Workers cite stress, lack of training, and unmet mental health needs, underscoring how psychological safety factors can shape overall workplace resilience.
News: Illinois bill requiring employers to provide notice on AI decisions took effect on January 1
The root of it: As reported in The National Law Review, Illinois’ new AI notice requirement took effect January 1, 2026, requiring employers to disclose when AI influences employment decisions such as hiring, promotion, discipline, or training. Draft rules from the state's Department of Human Rights outline the requirements for notice, how it must be delivered, and detail content disclosures, such as the purpose of AI, data used, and accommodation rights. The rules emphasize transparency, accessibility, and ongoing notification as AI systems evolve.
News: The last team to make the NFL postseason delivers the first lesson in insurance innovation
The root of it: After the Pittsburgh Steelers’ playoff-clinching win over the Baltimore Ravens turned on a missed “gimme” field goal at regulation time, Insurance Thought Leadership’s Paul Carroll explores how sports hot-takes mirror the way some leaders misjudge innovation: we see “failure” and hunt for blame instead of thinking in probabilities. The takeaway for insurers: act more like venture capitalists when possible – place multiple small bets, treat early experiments as learning experiences, and value teams with “scars.”
Read our 2025 State of AI Adoption in Insurance Report for insights and perspectives on AI adoption from more than 240 insurance executives.