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June AI Industry News
June 19, 20258 min read

June 2025: Insurance AI Trends & Highlights

Keep up with this month’s most important AI updates for insurance leaders. 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 19

News:  Strong demand and stiff challenges loom for cryptocurrency insurance markets 

The root of it: With just 11% of the $3.31 trillion crypto market insured, a huge opportunity awaits but also daunting obstacles. High demand – 42% eager to purchase coverage and another 26% considering it – drives potential growth, yet insurers struggle with volatile assets, cybersecurity threats, regulatory uncertainties, and a severe lack of actuarial data. Still, carriers like Lloyd’s, AIG, and Chubb are cautiously expanding, signaling a desire to close this immense insurance gap.

 

News: BCG insurance head offers view of AI-powered insurance – present and future state.

The root of it: Joe Khoury, Boston Consulting Group's managing director and insurance practice partner offers his views on the impact of AI today – delivering strong ROI in areas ranging from claims triage to underwriting support to customer service – and projects how AI will reshape insurance operations and talent strategies in the next over the next 5-15 years. 

 

News: New Meta model could provide the key to AI agents operating in the real world. 

The root of it: Meta recently announced the release of V‑JEPA2, a self‑supervised “world model” trained on over a million hours of video that equips AI agents with “common‑sense awareness” of physics – predicting object dynamics, gravity, motion, and more. It enables zero‑shot robotic planning – e.g., moving eggs from pan to plate with a spatula – marking a significant leap toward AI that “thinks before it acts.”

 

News: EU leaders are listening to Nvidia's pitch for sovereign AI  

The root of it: European leaders are accelerating efforts to build “sovereign AI” capabilities—AI infrastructure rooted in national languages, cultures, and data. Backed by significant funding from Nvidia and national governments, the program includes plans for a $20 billion EU-based AI “gigafactory” and other investments to make a strategic push for AI autonomy across the continent.

 

News: Plagiarism is so Y2K: 1000s of students caught cheating using AI

The root of it: Students at UK universities increasingly misuse AI tools like ChatGPT, with nearly 7,000 confirmed cheating cases in 2023–24 (5.1 per 1,000 students), up from 1.6 per 1,000 the previous year. Traditional plagiarism is declining, but AI misuse is more difficult to detect. More than a quarter of universities surveyed don’t yet separately track AI-related cheating. In response, experts call for revamped assessment methods emphasizing skills and reform.

 

News: AI-generated TV ad costing $2k to create viewed by millions of NBA Finals viewers 

The root of it: Kalshi, a sports‑betting marketplace, aired a surreal AI‑generated 30‑second commercial during Game 3 of the 2025 NBA Finals. Created by PJ Accetturo using Google’s Veo 3 in just 2–3 days and costing around $2,000. (Airtime for the spot is an estimated $750,000 - $2 million. Decried as “AI slop” by many, the ad blends bizarre scenes – from a farmer floating in eggs to an alien chugging beer – with the tagline “The world’s gone mad, trade it.” 

 

 

Latest articles as of June 12

News: US P/C industry records $1.1B underwriting loss for Q1 

The root of it: First-quarter 2025 net earned premiums for US P/C insurers rose 7.8% to $226.3B, but underwriting losses erased gains, according to AM Best. Catastrophe losses – including $38B from California wildfires – drove a 16% rise in loss and LAE expenses to $167.5 B. Fitch Ratings reports net income fell over 50% to $19.8B, with investment income up just 2.4%.

 

News: The dangers of using AI without understanding it
The root of it: According to journalist and author Karen Hao, widespread misunderstanding of how large language models (LLMs) are built and trained and how they operate fuels confusion and unrealistic expectations. This issue is often worsened by tech companies that promote AI in vague or misleading ways. Without more transparent communication, users may misinterpret AI capabilities – mistaking pattern-matching for reasoning – and misuse the technology in critical contexts.

 

News: Autonomous vehicles may cut insurance costs
The root of it: Goldman Sachs analysts predict autonomous vehicles will cut U.S. auto insurance costs nearly in half by 2050, as accident rates decline. The real shift, however, is in liability. Responsibility will move from drivers to automakers and tech firms. This transition challenges insurers to rethink traditional models, with product and cyber liability likely to take center stage.

 

News: AI hallucinations persist because speed beats accuracy

The root of it: AI chatbot creators like OpenAI, Anthropic, Meta, and others have prioritized speed and scale over accuracy, allowing “hallucinations” (false or fabricated responses) to persist – a flaw rooted in how generative AI functions. Although companies are adding training improvements, retrieval-augmented tools, guardrails, and human oversight, internal warnings are often sidelined by the race to launch faster and dominate benchmarks.

 

News: UK launches AI initiative to help British workers compete
The root of it: The UK government is overhauling education to prepare students and young workers to enter a workforce where nearly 11% of jobs already use AI and 27% of employers plan to adopt it soon. A new national curriculum will embed AI and digital skills across subjects. At the same time, teacher training and early tech exposure aim to equip students for success in a rapidly evolving job market.

 

News:  Nvidia CEO thinks we need to train AI like we train humans now
The root of it: Nvidia CEO Jensen Huang shared at London Tech Week that training AI today resembles teaching humans. He explained that interacting with AI using natural language prompts – like asking it to write a poem and then requesting improvements – is effectively “programming” with human language. Huang called this “the great equalizer,” enabling anyone to program AI without coding knowledge.

 

News: Builder.ai’s ‘AI’ was 700 hidden coders
The root of it: Builder.ai's spectacular collapse exposed an immense deception. While claiming revolutionary autonomous development capabilities, 700 engineers manually coded everything. Bloomberg also revealed accounting fraud inflating sales by 300%, leading to investigations and 1,000 job losses. The scandal highlights the critical need for insurance leaders to demand concrete AI proof as legitimate breakthroughs emerge amid widespread "AI washing" practices.

 

 

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.

 

News: “Please ask your AI assistant to wait outside”—Etiquette experts’ advice for the AI-powered workplace 

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.

 

Read our 2025 State of AI Adoption in Insurance Report for insights and perspectives on AI adoption from more than 240 insurance executives. 

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