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 29
News: Winter storm affecting much of the US caused up to $115B in damage and economic losses
The root of it: AccuWeather estimates the winter storm that hit more than 200 million people across 24+ states from January 24-26 will drive $105–$115B in total damage and economic losses, spanning property damage, extended power outages, significant travel delays, and disruptions to commerce, tourism, shipping hubs, and supply chains. Moody’s expects insured losses in the billions from this event, noting insurers have recently raised rates and tightened terms for “non-peak” perils like winter storms.
The root of it: A wave of US state AI statutes taking effect in January 2026 is replacing voluntary guardrails with enforceable rules – creating a compliance patchwork for insurers operating nationwide. Some examples include: California’s SB 243, which requires clear AI disclosure plus safety protocols for “companion chatbots,” including protections for minors, the New York mandate for conspicuous labeling when synthetic performers appear in ads, and the Texas Responsible AI Governance Act (TRAIGA), which restricts certain government AI uses, including social scoring and biometric identification without consent.
News: Insurance practices cast doubts on home ownership as “the American Dream”
The root of it: After the January 2025 Los Angeles wildfires, homeowners describe “delays, lowballs, outright denials” as they fight for funds to rebuild. The Guardian reports nearly 8 in 10 surveyed survivors encountered obstacles such as multiple adjusters, undervalued estimates, and poor communication. As carriers raise rates or stop writing policies – pushing more people into California’s FAIR Plan – consumer advocates warn that today’s insurance practices are undermining housing affordability and the promise of home ownership.
News: Commercial renewal rate increases spike in Q4-2025
The root of it: Commercial P&C renewal rate increases accelerated in Q4 2025, according to Ivans Index data covering 120 million transactions. General liability year-over-year increases nearly doubled, rising from a 3.95% Q1 average to 7.23% in Q4. Commercial property climbed to an 8.01% Q4 average – up from prior quarters but slightly below its 8.03% full-year average. Umbrella remained highest at 9.49%, while workers’ comp stayed negative at -1.61%.
News: New McKinsey report looks at the future of AI in insurance
The root of it: The latest McKinsey report, “The Future of AI in the Insurance Industry,” concludes that, while many insurers have deployed AI, only a small group is capturing disproportionate value, defined as delivering roughly six times the total shareholder returns of AI laggards. The analysis presented emphasizes that real impact comes from rewiring entire domains like underwriting, claims, and service, supported by modern data foundations, scalable AI capabilities, and sustained organizational change, not isolated pilots or point solutions.
News: Lemonade to cut costs for Tesla owners who use "Full Self Driving” (FSD) mode
The root of it: Lemonade is cutting Tesla owners' per-mile insurance rates by about 50% when Full Self-Driving (FSD) is installed and engaged, arguing that AI-driven miles may pose lower risk than human-driven ones. Through a technical collaboration, Tesla gives Lemonade access to vehicle telemetry so its usage-based models can distinguish human vs. FSD driving for precise, dynamic pricing – despite FSD being a Level 2 system, not fully autonomous. The program launched in Arizona on Jan. 26 and rolls into Oregon in February.
News: Is 2026 the year autonomous vehicles go mainstream?
The root of it: While autonomous vehicle (AV) tech has been evolving for years, 2026 may mark a tipping point as public perception shifts and robotaxi rollouts accelerate, a contention supported by an op-ed in The New York Times op-ed framing AVs as "a public health breakthrough.” The normalization/acceptance of AVs could eventually reshape auto and auto insurance markets. However, widespread individual adoption – and its full impact on premiums – is likely to follow further down the road.
Latest Articles as of January 22
News: Allianz builds an AI agent to train workers to use VR in claims
The root of it: Allianz Commercial North America is testing a gamified VR training program powered by an AI agent to accelerate onboarding and training by closing workforce age and talent gaps. Trainees enter simulated claim scenarios with a virtual risk manager. At the same time, the AI agent delivers real-time coaching – down to the level of voice inflection – and directs them to relevant policy and regulatory details. The tool has been in testing for more than 3 months; success will be measured with 2026 hires’ licensing and claim-handling readiness.
News: Aon study finds GLP drugs contribute to “meaningfully slower” medical cost growth
The root of it: Aon’s new analysis of ~50 million deidentified commercial claims found that users of second-generation GLP-1 treatments had “meaningfully slower” medical cost growth than matched non-users, even though total spend remains higher once drug costs are included. The benefit depends on adherence: Patients at 80%+ adherence nearly doubled cost-growth improvements. The study also highlighted women’s health gains, including lower hospitalizations for major adverse cardiovascular events (MACE) and reduced ovarian and breast cancer incidence.
News: Tech vendors and an insurer are named as defendants in an alleged claims underpayment scheme
The root of it: A West Virginia couple sued Liberty Mutual and several claims-technology firms, alleging their tornado claim was routed through third-party tools and incentives that suppressed payouts. The complaint names Snapsheet, CCC Intelligent Solutions, and Claim Assist Solutions/Claim Assist Technologies, and seeks damages and injunctive relief tied to alleged underpayment after the loss. Liberty Mutual denies the allegations.
News: Michigan regulators issue their bulletin guiding AI use in financial services/insurance
The root of it: Michigan’s Department of Insurance and Financial Services issued a bulletin guiding how insurers should manage AI systems used in consumer-facing decisions. The guidance calls for a written AI Systems Program with governance and controls to reduce adverse outcomes, and points to risks regulators expect insurers to address – errors, unfair discrimination, data vulnerabilities, and opaque decisioning. While highlighting AI’s potential to improve products, service, automation, and efficiency, the bulletin underscores insurer accountability for compliant, well-managed use.
News: Experts share their views on why 2026 will be the year of smarter insurance
The root of it: Experts cited in Insurtech Analyst say 2026 will be the bridge from “digital” to smarter insurance – where cloud-native platforms, AI, and automation connect front, middle, and back office to modernize the operational backbone. With most insurers already piloting or deploying AI, carriers are compressing claims from days to hours and using predictive analytics for pricing and risk selection. The next anticipated breakthrough is guardrailed agentic AI, which can anticipate correlated portfolio risks and enable real-time, transparent customer experiences.
News: Meta laid off much of the Metaverse division
The root of it: Meta is scaling back its Reality Labs division, laying off about 1,500 employees (nearly 10% of its workforce) and shuttering three virtual reality game studios, while keeping Horizon Worlds running at a reduced capacity. The cuts follow Reality Labs’ reported losses of more than $77 billion since 2020 and reflect a shift in investment from the metaverse to AI-powered wearables, like smart glasses.
The root of it: Matthew McConaughey is taking a proactive legal approach to deter AI-driven impersonation: he filed trademark applications to prevent AI companies from using his likeness without permission, and the US Patent and Trademark Office has approved eight so far. The trademarks cover short video and audio clips of him (including his signature catchphrase from the Richard Linklater movie Dazed and Confused, “alright, alright, alright”). McConaughey’s attorney says the rules around AI “commercial use” remain murky, so they’re testing trademarks as a deterrent.
Latest Articles as of January 15
News: Insurance sheds 2,500 jobs in late Q4 2025
The root of it: Claims adjusting employment fell by 2,500 jobs from November to December 2025, the steepest decline across US BLS-tracked insurance segments. Over the same period, direct life and health insurers cut 1,700 roles, P/C insurers shed 1,500, agencies and brokerages lost 800, and reinsurers trimmed 100 – while Pharmacy Benefit Managers (PBM) and/Third Party Administrators (TPAs) added 500 positions and direct carriers gained 300. Analysts frame these figures within a broader “low-hire, low-fire environment,” with wage growth moderating but still solid.
News: Morgan-Stanley forecasts AI cost efficiencies in underwriting, “back-office” functions
The root of it: Morgan Stanley Research forecasts that commercial insurers and brokers could realize up to 4% cost efficiencies over the next five years by implementing AI across back-office and underwriting operations. The report expects a two-stage rollout: early gains from back-office efficiency, followed by AI that enhances underwriting, improves loss ratios, and supports sales growth. Benefits should appear first for insurers, then brokers – though brokers may ultimately see a greater upside.
News: California lawmaker pushes transparency bill for insurance aerial imagery
The root of it: California Assemblymember Lisa Calderon (D-Whittier) has introduced AB 1559 to add transparency and consumer protections around insurers’ use of aerial imagery (from drones, satellites, and airplanes). The bill would require advance notice to homeowners before images are taken or obtained, and insurers would have to provide the images upon request. It would also bar cancellations, non-renewals, or coverage reductions based on aerial images older than 180 days and give policyholders the right to receive images with non-renewal notices and request in-person verification.
News: Utah pilot program to test AI-automated prescription refills
The Root of it: Utah has launched a first-in-the-nation pilot allowing an AI system to renew prescriptions for 190 common medications for chronic conditions – excluding drugs with abuse potential like pain management and ADHD meds. Renewals will start at $4, with plans for insurance coverage or an annual fee. The program, run with startup Doctronic, claims 99.2% agreement with human clinicians and assigns malpractice responsibility as if a doctor had made the call.
News: “Insurance” Google search activity in 2025 reached record levels
The root of it: Insurance-related Google searches hit record highs in 2025, with car, home, business, health, and life insurance all peaking, per Insurance SEO & SEM. Business insurance led growth (+89% YoY), and many categories saw their top weeks concentrated in 2025 – e.g., notable activity spikes the week of July 13–19, following catastrophic Texas flooding. The report argues SEO still drives high-intent customer acquisition and will likely complement AI search in 2026.
News: UK advances laws criminalizing deepfake intimate content
The UK government says it will bring into force a law this week that makes it a crime to create non-consensual intimate images, including sexual deepfakes. Speaking in parliament, Technology Minister Liz Kendall said the measures would also outlaw companies supplying tools designed to generate such images. The move follows UK regulator Ofcom opening an investigation into X/formerly Twitter after sexual deepfakes were produced using its Grok AI chatbot; Kendall said X limiting the capability to its paid users “did not go far enough.”
News: Streaming business CEO predicts 100% AI-generated hit movie “within the next three years”
The root of it: In an interview at CES, Roku founder and CEO Anthony Wood predicted that within the next three years we’ll see the first “100% AI-generated hit movie.” Wood framed the forecast as a plausible near-term leap in what generative AI can produce for mainstream audiences, suggesting the technology’s rapid progress could soon create a fully AI-made film that still qualifies as a hit.
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.