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 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.