Keep up with this month’s most important AI updates for insurance professionals. Dive into the articles below for a curated look at emerging trends, new innovations, and real-world AI applications shaping the insurance landscape—and beyond.
Latest articles as of June 5
News: Nearly ¼ of consumers avoid filing claims due to “frustrating” digital customer experience
The root of it: A recent survey cited by Carrier Management reveals that 22% of consumers have avoided filing insurance claims due to frustrating digital processes. Additionally, 64% would consider switching insurers for a more seamless digital experience. These findings underscore the importance of digital platforms in maintaining trust and customer loyalty.
News: Florida property insurers post first underwriting profits since 2015
The root of it: Florida’s property insurance industry, once the poster child of market dysfunction, has staged a stunning turnaround. After losing hundreds of millions of dollars annually since 2015, Florida-based carriers reported turning a collective profit in 2024. Changes to state laws governing policyholder lawsuits and substantial rate hikes are credited with this reversal.
News: Is Meta’s reliance on automated risk assessment a significant risk factor?
The root of it: Meta founder Mark Zuckerberg famously said, “Move fast and break things.” Now, his company plans to automate up to 90% of its product risk assessments using AI to accelerate feature rollouts on its Facebook and Instagram platforms. A former executive who spoke anonymously to NPR warns that this shift potentially increases risks related to privacy, misinformation, and youth safety.
News: “Godfather of AI” launches startup dedicated to AI safety research
The root of it: AI pioneer Yoshua Bengio announced the founding of LawZero, a non-profit dedicated to developing "honest" artificial intelligence. With $30 million in initial funding, LawZero aims to create “Scientist AI,” a system to ensure safer AI deployment in critical sectors by detecting and preventing deceptive behaviors in autonomous AI agents.
News: Insurance and Hollywood adapt to new risks as showbiz goes virtual
The root of it: Hollywood's shift to virtual and immersive productions is transforming the risk landscape. Physical hazards are giving way to digital vulnerabilities, including equipment failures, data breaches, and cyberattacks. Insurers are adapting by offering specialized coverage for virtual sets, LED displays, and digital assets to offer comprehensive solutions for these emerging risks.
The root of it: As AI assistants appear in more meetings, many are pushing back, claiming AI notetakers are intrusive. Etiquette experts with the Emily Post Institute urge businesses to set explicit norms and prioritize their team members’ comfort. Recommended practices include transparency, opt-in policies, and flexibility—like ditching AI tools when a colleague objects—to foster trust and an inclusive AI culture.
News: Everything is fine… New FEMA head possibly unaware of US hurricane season
The root of it: FEMA Administrator David Richardson, appointed in May, reportedly told staff he was unaware of the US hurricane season, causing confusion within the agency. While a DHS spokesperson claimed the remark was a joke, some critics, including prominent legislators from states often battered by cyclonic storms, raised questions about Richardson's qualifications. Meanwhile, concerns persist over FEMA's preparedness amid staff cuts and a forecasted above-normal hurricane season.
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