Latest articles as of July 31
News: Global commercial insurance rates fell in Q2, reversing a seven-year trend
The root of it: Driven by softening property rates and expanding insurer capacity, commercial insurance rates declined 4% globally in Q2 2025 – the largest quarterly drop in recent years. US casualty rates bucked the trend, rising 9% amid mounting claims severity and social inflation. Competitive pricing pressures are intensifying across regions, signaling the potential for a shift from a prolonged hard market to a more buyer-favorable cycle.
News: First half ‘25 insured CAT losses second-highest total on record
The root of it: Munich Re estimates global insured losses from natural catastrophes hit $80 bn (US) in the first two quarters of 2025 – the second‑highest first-half total since the reinsurance giant began keeping records in 1980. Losses were predominantly driven by US events, including the California wildfires ($40 bn), and severe convective storms (~$26 bn) – while overall economic losses reached about $131 bn.
News: Survey shows adults ages 18-29 are the most engaged AI adopters
The root of it: Young adults (ages 18-29) are driving America’s AI adoption, with 74% of this age group using AI to find information – and nearly 60% of them using it to generate ideas. In contrast, less than half of all adults use AI for work, emails, or image creation. Other findings from this AP-University of Chicago/NORC survey show that, despite rising AI usage, respondents voice concerns about accuracy and trust as major barriers to broader AI adoption.
News: Chinese AI alliances form domestic ecosystem to disrupt US AI domination
The root of it: Two Chinese AI alliances have formed to align domestic hardware makers, LLM creators, and industrial users in a bid to strengthen the country's global AI market leadership. Companies involved, including Huawei, Moore Threads, StepFun, and others, aim to reduce Chinese dependence on U.S. technology, creating a self-reliant ecosystem through vertical integration and hardware-software collaboration. This move supports China’s long-term resilience in AI capabilities amid US export controls, especially in finance, manufacturing, and customer service sectors.
News: New study measures the occupational impact of gen AI
The root of it: A Microsoft research team analyzed 200,000 anonymized Bing Copilot conversations from the past year to map AI users’ actions onto work activities classified by the US Department of Labor’s Occupational Information Network (O*NET) database. The AI applicability scores applied to the jobs studied indicated the technology’s significant impact on communication-heavy knowledge work – but they also showed that many jobs involving physical or manual skills will remain minimally affected.
News: “Excel-ent” agentic AI platform outperforms Goldman Sachs analysts in spreadsheet modeling exercises
The root of it: Shortcut, a new agentic AI platform, reportedly beat first-year analysts from Goldman Sachs and other major firms 89% of the time in finance and consulting tasks performed with MS Excel. While this figure hasn't been independently verified, the tool automates complex financial spreadsheet work – like financial modeling and SEC data imports – with minimal input. Despite some flaws (early users noted formatting issues, among other problems), these results underscore recent significant progress in knowledge-work automation.
News: Is AI coming for the consultancy business?
AI threatens to disrupt the consulting industry’s decades-old model. Routine business analysis that once took weeks now takes minutes, eroding demand for junior consultants. As U.S. government agencies, corporations and other institutions reevaluate the scope and value of major consulting contracts, “Big Four” consulting firms face workforce reductions, profit pressure, and a shift to outcome-based pricing. Like other sectors before them (e.g., media), consultancies will survive this transition – but will emerge from the ordeal leaner, more accountable, and with diminished traditional pricing power.
Latest articles as of July 24
News: AI-powered efficiency to reduce homeowners insurance losses
The root of it: Insurtech luminary Matteo Carbone reflects on a difficult decade for insurance, citing the industry’s underwhelming financial performance spanning 2013 - 23. In his view, AI – and not traditional cost-cutting measures – offers the most sustainable path to future efficiency. Carbone’s findings, presented in an Insurance Thought Leadership essay, highlight AI’s value in risk monitoring, claims automation, and underwriting, emphasizing that smart integration, quality data, and regulatory alignment are critical to realizing this potential.
News: Use of AI in insurance a “gamechanger” – here’s what to expect in the near future
The root of it: A new McKinsey study outlines how a select group of insurers are achieving real value from AI using the technology to strategically “rewire” claims, underwriting, customer service, and other areas to realize 6.1× higher returns, 10–15% premium growth, 20–40% reduction to onboarding costs, and 3–5% gains in claims accuracy. The report also offers a practical roadmap for moving beyond pilot programs and PoC exercises to create enterprise-scale results.
News: Meta says it won't sign EU AI agreement
The root of it: Meta has refused to sign the EU’s voluntary AI Code of Practice, decrying it as a regulatory “overreach” that could “throttle” AI innovation. The company’s global affairs head, Joel Kaplan, criticized the code for introducing legal uncertainties and going beyond the AI Act's strictures. Meta joins ASML, Airbus, and other firms warning that the rules could hinder model development, while Meta's competitor, OpenAI, opted to comply. The Code takes effect next month.
News: Aviation leaders express concerns about long-term risk unreadiness
The root of it: A WTW survey of 130 senior aviation executives found that just 29% believe their business models will remain resilient a decade from now. While AI tops today’s concerns, cyber threats are expected to lead in two years, and 74% cite tech as the most significant long-term risk. Despite the threats posed in these risk scenarios, many leaders said their businesses lack insurance, data, and frameworks to manage emerging threats.
News: Perplexity CEO foresees AI agents taking over roles like recruiters and executive assistants
The root of it: Perplexity CEO Aravind Srinivas says AI browsers like his company’s Comet could soon automate tasks now handled by recruiters and executive assistants – including scheduling, follow-ups, and email coordination. With continued progress in reasoning models and agentic applications, some roles reliant on structured workflows in operations-focused industries may be at risk. Similar warnings from Anthropic and LinkedIn highlight growing concern about AI’s impact on entry-level white-collar jobs.
News: Despite objections, Netflix touts success in first use of AI special effects.
The root of it: Netflix used generative AI in The Eternaut to create a building collapse 10x faster and more affordably than traditional video effects, making this the streaming giant’s first AI-generated footage on screen. While praised for democratizing high-end effects, the move reignites concerns across Hollywood. Some critics warn AI could displace artists, degrade craftsmanship, and misuse creators’ work – issues that fueled 2023’s actor strike and stalled major studio expansions.
News: AI can be subliminally taught to love owls and other stuff
The root of it: The real story here is that large language models can subliminally embed coded signals in data to transmit traits or knowledge to other LLMs – such as liking owls ... or being evil. But owls are nice, right?
Latest articles as of July 17
News: Governance, data, change management keys to success in scaling AI in insurance.
The root of it: AI adoption is gaining traction, according to a recent study that shows 77% of U.S. insurers now use AI in areas like claims and underwriting. However, scaling remains uneven, hindered by fragmented efforts, legacy tech, and talent gaps. Encouragingly, leaders are investing in data modernization and governance. A strategic focus on change management, measurement, and cross-functional collaboration is helping insurers turn experimentation into enterprise-wide value.
News: Automaker BYD pledges to pay for damages from any Level‑4 self‑parking crash.
The root of it: Chinese EV titan BYD, which recently passed Tesla as the world’s biggest seller of battery electric passenger cars, now offers Level 4 (fully automated within operational design domains) self‑parking via its "God’s Eye" system – and is so confident in the system, that they will assume full liability for damages caused by the technology. Drivers can bypass filing claims with their insurer and contact BYD directly, avoiding premium hikes. Latest updates to the system include advanced OTA enhancements and compliance with global standards, signaling a major shift in autonomous tech liability and consumer trust.
News: 2024 showed continued “very strong” P&C results for global reinsurers.
The root of it: Fitch reports that major global reinsurers – including Munich Re, Swiss Re, Hannover Re and SCOR – notched a second consecutive strong year in 2024, with the average reported return on equity at 14% (down from the 2023 cycle peak of 20%). Driving these results were robust underwriting, favorable renewals, and elevated bond yields, which combined to boost investment returns. Solvency remained above targets, positioning the sector for similarly positive results in 2025.
News: Nonprofits tackle AI inequality with tools for learners in underserved markets.
The root of it: Nonprofits, including Qatari-based Education Above All, are partnering with educational institutions and NGOs to create AI literacy programs to serve communities in low-resource regions often overlooked by mainstream tech businesses. One such program, Digi‑Wise, has developed an AI chatbot, Ferby, which is embedded in edtech platforms supporting education for 124 million students and teachers in India. This growing movement challenges AI inequality by prioritizing the design of offline solutions, respecting cultural context, and giving marginalized groups a more prominent voice in the AI future.
The root of it: Last week, the AI hardware colossus Nvidia closed above $4 trillion in market capitalization, becoming the first public company ever to reach this milestone, and joining Apple and Microsoft as the only businesses valued at more than $3 trillion. This growth is driven by surging AI chip demand – especially for the company’s Blackwell AI hardware platform – and other economic and market factors. Nvidia is now worth more than the combined value of the Canadian and Mexican stock markets, according to LSEG data, and it exceeds the total value of all publicly listed companies in the UK.
The root of it: College professors are increasingly using AI to grade, prep classes, and give feedback – prompting backlash from students who feel shortchanged on their tuition by being deprived of their professors’ expertise (and effort). Some have even demanded refunds. As AI becomes further embedded in academia, experts warn of eroding trust and call for transparency – e.g., disclosure when AI is used – to ensure meaningful human oversight in higher education.
Latest articles as of July 10
News: Wearable tech is a potential key to reducing injuries in physically demanding work environments
The root of it: A partnership between Nationwide and Kinetic, piloted at Mid‑Ohio Food Collective, uses wearable sensors to monitor risky movements and provide real‑time alerts to workers. The wearables, adopted by 88% of the workforce, drove notable reductions in ergonomic risks and reinforced safety culture. Dashboards deliver aggregated insights, ensuring privacy while guiding continual improvements and helping the carrier achieve 1 million injury‑free workplaces by 2030.
News: US tariffs are slowing global growth and denting insurance premium expansion
The root of it: Swiss Re warns that recent US tariffs are cooling global GDP – from 2.8% in 2024 to ~2.3% in 2025–26 – which is predicted to inhibit total insurance premium growth from 5.2% in 2024 to around 2% in 2025. Non-life and life are both expected to decelerate, while niche lines like credit, surety, and marine may find an upside amid shifting supply chains.
News: Hard lessons from the Texas floods – and the opportunity to do better
The root of it: The recent Texas floods caused devastating loss of life and property, exposing deep vulnerabilities in communities and insurance systems. The tragedy revealed serious flaws in outdated risk models, underscoring a deeper issue – people struggle to grasp and act on low-probability, high-impact risks. This presents a dual challenge for insurers, modernizing underwriting with real-time data and helping communities better understand and prepare for climate-driven threats.
News: 2025 US wildfires nearly doubled the number of fires compared to last year
The root of it: In 2025, the US has experienced 36,156 wildfires year-to-date – nearly double last year’s total of 17,739 over the same period. As of July 9, 111 are still ongoing. The fires have affected more than 2.13 million acres (compared to 2.90 million acres burned by this point in 2024). Alaska leads with 79 active blazes, of which only two have been extinguished. Since 1980, wildfires cost the US about $3.3 billion annually, per NOAA estimates.
News: AI is transforming our daily lives faster than we suspect
The root of it: AI is rapidly reshaping work and education in subtle, even imperceptible ways. Its influence on hiring, learning, and decision-making is expanding at a pace that exceeds people’s ability to grasp its scope. Experts ranging from OpenAI CEO Sam Altman to Geoffrey Hinton, the “godfather” of machine learning, predict that we may only understand AI’s actual impact on our lives and work until after significant changes have already occurred.
News: Prompting is programming so here's why we’re all software engineers now
The root of it: As AI tools become more powerful, the ability to prompt them effectively – essentially “natural language programming” – is emerging as a core professional skill. HR experts are urged to embrace this new managerial competency as a source of competitive advantage. Just as spreadsheets 40 years ago de-emphasized hard math skills to empower a new generation of data analysis, prompt literacy quietly transforms knowledge work across insurance and other industries.
News: X (formerly Twitter) CEO abruptly resigns after two years
The root of it: Linda Yaccarino has resigned as CEO of X after a two‑year tenure under Elon Musk. Her departure follows a fresh crisis after X’s AI chatbot, Grok, launched antisemitic tirades. Musk acknowledged Grok’s flaws, citing its over‑compliance with prompts, and promised fixes. Yaccarino did not link her exit to the incident, thanking the team for their “remarkable” work.
Latest articles as of July 3
News: AXA and Allianz top insurance AI innovation/maturity rankings
The root of it: Evident Insight’s inaugural AI Insurance Index ranks 30 major carriers on talent, innovation, leadership, and transparency. AXA tops the poll with 63 points, Allianz closely follows at 61.5, far above the average score of 35.5. Other findings: European carriers excel in AI research and ethics; U.S. P&C firms lead in talent density. Results show early AI investment drives measurable financial gains and competitive advantage.
News: AI‑driven multimodal tech will be the key to fighting insurance fraud
The root of it: As reported by Deloitte, P&C insurers are adopting AI-powered multimodal systems—integrating text, images, audio, video, and sensor data—to detect and prevent fraud across the claims lifecycle. By moving beyond rules-based models, this approach can reduce false positives, free investigators for complex cases, and potentially save the industry $80-160 billion by 2032
News: Hertz AI is really good at detecting vehicle damage – maybe TOO good
The root of it: Hertz has rolled out UVeye AI scanners at its Atlanta airport location – with plans to deploy them at 100 U.S. sites this year – to detect damage on rental cars before and after use automatically. Customers report being billed $195–$440 for tiny scuffs flagged by AI, saddling renters with short payment windows and limited recourse, prompting public backlash and broader questions about fairness vs. efficiency.
News: Success for companies using AI hinges on human creativity and expertise are
The root of it: A new study by the University of Utah’s Jay Barney argues that AI won’t deliver a long‑term competitive advantage as generative AI tools become more equally accessible. Success hinges on human ingenuity – novel applications, partnerships, and creativity. As AI automates and commoditizes routine work, differentiation and value will come from human-driven innovation and personal connections.
News: Tech superstars reveal their top 3 job skills for the age of AI
The root of it: Eight leaders from Cisco, Dropbox, and other titans say succeeding in the age of AI requires more than technical chops. Skills like deep thinking, creativity, emotional intelligence, and ethical judgment are now as critical as mastering AI tools. For insurance leaders, developing T-shaped talent (emphasizing breadth and depth of knowledge) and promoting cross-functional collaboration will be key to driving value from AI across the enterprise.
News: If AI job skills are essential, why do some businesses still consider using AI "cheating " at work?
The root of it: A new survey reveals that 40% of Gen Z men use AI to take shortcuts at work – often without disclosure. The trend is sparking discussions among employers about ethics, productivity, and transparency, while workers cite such concerns as job insecurity, unfair biases, and “AI burnout.” As AI tools become more accessible, insurers and other businesses must balance innovation with governance to ensure responsible use and maintain trust in the workplace and the marketplace.
News: New Anthropic model proves comically inept at running a business
The root of it: Anthropic's AI model Claude was tasked with running a virtual beverage company – and failed hilariously. In tests, Claude hallucinated expenses (and proper workplace attire), misunderstood inventory, and ignored profit goals despite having access to spreadsheets and other tools. The experiment reveals the current limits of agentic AI for autonomous decision-making and underscores the need for human oversight, especially in high-stakes industries like insurance.
News: Makers of The Naked Gun reboot dunk on AI-generated content (while recycling 37-year-old IP)
The root of it: A new poster for "The Naked Gun" reboot, starring Liam Neeson, playfully mocks AI-generated content in a single, simple sight gag. At the same time, it delivers a not-so-subtle reminder that AI is still a hot-button issue in Hollywood, highlighting the current gap between AI’s vast potential and the technology's limitations in producing original creative work.
Read our 2025 State of AI Adoption in Insurance Report for insights and perspectives on AI adoption from more than 240 insurance executives.