AI is moving fast – don’t let the insurance industry fall behind. The list of articles below brings you the most important updates, use cases, and innovations in AI, curated for insurance professionals who want to stay ahead.
Latest articles as of October 30
News: Agents to play an expanded role in closing homeowners’ coverage gaps
The root of it: Nationwide and The Hanover Insurance Group reports show that many homeowners overestimate their policy protection, even as concerns about exclusions and rising costs grow. Agents are stepping up as trusted advisers, helping clients understand coverage limits, navigate inflation and rebuild costs, and leverage smart-home data to help close protection gaps and add value to long-term customer relationships.
News: The surprising insurance ramifications of the Louvre jewel heist explained
The root of it: After a daring October 19 theft of eight French crown jewels from the Louvre, Olivia Whiting, Head of Cultural Heritage at Art Loss Register, the world’s largest private database of stolen antiquities, explains that national museums like the Louvre typically self-insure because their collections are state property. The French government acts as its own insurer, balancing the high cost of private coverage against the rarity of claims. The incident underscores the unique financial exposures cultural institutions face when priceless works are lost or damaged.
News: Investment income offers respite from escalating CAT losses – but for how long?
The root of it: Conning’s latest US P&C outlook highlights catastrophe losses – driven by severe storms, floods, and wildfires – as the sector’s enduring challenge, with CAT losses near $64 billion in the first half of 2025. Robust investment returns have softened the impact, but analysts warn that rising loss severity, rate fatigue, and shrinking capacity in high-risk zones could soon erode that financial buffer.
News: Discover one man’s quest to make AI think before it speaks
The root of it: Stephen Klein, cofounder of the conversational learning startup Curiouser.ai, is on a mission to make AI “thoughtful.” His AI coach, "Alice," flips the script – asking Socratic questions instead of giving answers. Klein pushes back against today’s AI automation frenzy, advocating for human-centered, augmentation-first systems that sharpen critical thinking rather than replace it.
News: Study reveals consumers don't trust AI but use it anyway
The root of it: While 72% of US adults generally express concerns about AI privacy, bias, and misinformation, a Deloitte survey reveals that 53% of respondents say they still use generative AI tools – with more than half of this cohort using chatbots daily. The findings underscore a growing divide between consumer apprehension and the steady normalization of AI in everyday life – or what we humans call a “love/hate relationship.”
News: Relatedly, ChatGPT wants to show you ads based on your prompts
The root of it: OpenAI may soon show ads in its flagship ChatGPT product that are tailored to user prompts retained in the chatbot’s memory systems. The move reflects a growing internal debate influenced by former Meta staffers recruited to OpenAI for their ad monetization experience. CEO Sam Altman has publicly opposed ads in the past, but shifting leadership priorities suggest OpenAI could follow social-media-style personalization paths to drive new revenue.
News: Political influencer sues Google over “outrageously false” AI statements
The root of it: A lawsuit against Google underscores growing concerns about AI-generated misinformation. Political influencer Robby Starbuck claims Google’s Bard tool made defamatory statements about him, spreading falsehoods to millions. Google acknowledges that such hallucinations remain an ongoing issue. The case adds momentum to public debates over accountability, reliability, and safeguards for large-scale language models in public use.
Latest articles as of October 23
News: Moody’s cites lax AI governance as a key driver of increased cyberattack risk
The root of it: Moody’s Ratings warns that businesses in several categories lack AI governance, heightening cyber and data-exposure risks. Nearly 22% of 2,000 rated firms have no rules stopping employees from inputting proprietary data into public chatbots. The study also cites weak multi-factor authentication, inconsistent data backups, and software-vendor vulnerabilities as compounding cybersecurity risks.
News: Insurance CISOs want to illuminate users on data risks from “shadow AI”
The root of it: Insurance Thought Leadership reports that an increasing percentage of workers use external AI tools without company IT oversight. This practice, called “shadow AI,” is an emerging trend, exposing businesses to significant data security, IP theft, and regulatory compliance risks. Eighty-four percent of commonly used AI tools have experienced breaches, and over half have fallen victim to credential theft. Organizations are urged to provide secure, enterprise-grade AI alternatives instead of enacting bans that are difficult to govern and can create ill will.
News: Is insurance at a crossroads over AI-driven risks, coverage gaps, and E&S solutions?
The root of it: As AI becomes further embedded in underwriting, claims, and customer service operations, insurers are discovering novel coverage gaps and liability “gray areas.” Traditional policy language and pricing models weren’t built for losses tied to algorithmic tools or data-driven workflows. Excess and Surplus (“E & S”) carriers are experimenting with revised policy language to keep pace. For underwriters and claims leaders, the challenge is connecting human decisions informed by AI insights to clearly defined, insurable risks.
News: Homeowners are quick to embrace DIY claims documenting
The root of it: A recent nationwide survey of over 1,120 US homeowners found nearly 8% would use their smartphone to document property damage for a claim, while 55.8 % would use it to take photos for a quote. Homeowners over age 60 showed the greatest willingness to use their mobile devices (>80 %). At the same time, 61.9% of respondents in all age groups expressed concerns about making documentation mistakes, with 46% of this broader group unsure about what or how much information to capture.
The root of it: Insurers are re-evaluating catastrophe models as climate volatility and severe storms expose their limits. The industry is finding greater uncertainty in predicting wildfire and storm losses. Future resilience will hinge on supplementing models with detailed property data, mitigation insights, and broader analytics to improve pricing accuracy and reinsurance confidence.
News: AI agents are ready to evolve the role of insurance systems of record
The root of it: Guidewire’s chief evangelist, Laura Drabik, explains how traditional systems of record will evolve into “systems of insight” in the agentic AI age. Drabik details how cloud-native, API-first core platforms provide the deterministic, auditable foundation insurance carriers need, so AI-powered tools can operate reliably at scale across underwriting, claims and customer service.
News: Empathy is the critical element to overcoming insurance customers' AI skepticism
The root of it: A Zurich Insurance Group study conducted with Jamil Zaki, director of the Stanford Social Neuroscience Lab, identifies empathy as a definitive competitive edge. The report’s findings show that 73% of consumers avoid businesses lacking empathy – and 43% would abandon a brand due to it. While only 63% of respondents believe financial-services firms are genuinely empathetic (compared with 88% who believe that empathy is essential), 71% of those surveyed doubt AI can deliver a genuine human connection.
Latest articles as of October 16
News: Heavy corporate users of Gen AI want insurance for new risks
The root of it: A Geneva Association survey of 600 corporate decision-makers in fields with high exposure to AI risk (financial services, health care, technology, etc.) revealed that more than 90% are interested in Gen AI risk coverage, and about two-thirds would pay at least 10% higher premiums for it. Demand is highest in the US and China. In response, insurers are cautiously launching endorsements, standalone covers, parametric triggers, and governance screening to manage adverse selection risk.
News: Recent Silicon Valley dealmaking activity stokes further fears of an AI bubble
The root of it: At OpenAI’s DevDay, the company’s CEO, Sam Altman, acknowledged “bubbly” conditions in AI as investors pour record sums into intertwined deals linking OpenAI, Nvidia, AMD, Microsoft, and Oracle. Experts warn of “circular financing,” inflated valuations, and potential economic fallout if the bubble bursts. However, some argue that “overbuilt” infrastructure could still leave lasting benefits – echoing the internet’s post-dot-com recovery.
News: US electric utilities to spend $1.1T to expand power grid in the next 5 years
The root of it: US utility companies expect to invest over $1.1 trillion in the next five years – $208 billion in 2025 alone – expanding power grids to accommodate surging AI, data center, and electrification demand. However, analysts warn that permitting delays and grid constraints could slow projects, creating potential exposure and operational risk for insurers.
News: Colorado’s sweeping insurance AI rule takes effect
The root of it: Colorado’s Division of Insurance (DOI) AI governance Reg. 10-1-1 went into effect at midnight on Oct. 15, 2025. These new strictures cover documentation and oversight requirements for “Life Insurers’, Private Passenger Automobile Insurers’, and Health Benefit Plan Insurers’ Use of External Consumer Data and Information Sources, Algorithms, and Predictive Models.” Implementation of the state's broader SB24-205 omnibus AI Act is deferred until June 30, 2026, but insurers are expected to follow the Colorado DOI's framework now.
News: Global financial regulators plan to step up oversight of AI risks across banking and insurance
The root of it: Global regulators are increasing scrutiny of AI use across financial services, including insurance, due to concerns that shared models and technologies could amplify systemic risks. They warn that AI-driven decision-making in underwriting, claims, and risk modeling may introduce new vulnerabilities if not properly governed. The effort reflects a growing push for transparency and accountability to balance innovation with stability.
News: States that are leading the surge in AI job demand
The root of it: A recent study by Simulus AI shows that states with strong academic institutions, government contracts, or industry clusters are emerging as AI talent hubs in 2025. Because companies are aggressively hiring for AI expertise, the geographical demand for AI skills is creating winners and losers across the U.S. The findings highlight that location, infrastructure, and institutional support are playing a key role in shaping the distribution of AI job opportunities.
News: AI chatbot conversations could be used as evidence against palisades fire defendant
The root of it: Federal prosecutors allege that the California man accused of setting January’s massive Pacific Palisades wildfire used ChatGPT to generate fire-related images and ask questions apparently aimed at gauging whether his actions could implicate him in the blaze. Investigators can enter these chatbot logs as evidence, prompting questions about how and when AI conversations are potentially discoverable in prosecutions.
News: Mental health surpasses physical hazards as the primary workplace safety concern
The root of it: A Pie Insurance survey finds that 32% of workers now rank mental health as their top workplace safety concern – outpacing physical hazards at 20%. While most employers surveyed report offering counseling or mental-health days, fewer than one-third of workers are aware that such programs exist. The survey also reveals optimism gaps around AI: employers foresee AI improving safety, but their employees do not share that confidence.
News: J. D. Power Study Reveals Independent Agents Feel Underserved by Carriers
The root of it: J.D. Power’s 2025 Independent Agent Satisfaction Survey finds many independent agents feel undervalued, with only about half saying carriers meet their basic needs. Agents cite poor communication and limited flexibility as key pain points. The report’s findings underscore an opportunity for carriers to rebuild trust by delivering greater transparency and increased ease of doing business.
News: Homeowners embrace DIY claims with smartphones
The root of it: A new survey shows homeowners are increasingly comfortable managing parts of their insurance claims using smartphones to document damage and communicate with insurers, though most still want professional guidance. Insurers see potential in mobile self-service claims to speed processing and boost satisfaction, signaling a shift toward digital, user-driven experiences and paving the way for AI to enhance accuracy and efficiency.
News: Common costly claims errors and solutions
The root of it: Poor timing, weak communication, and misunderstanding jurisdictional nuances often lead to costly errors in claims handling. Experts stressed the importance of collaboration with local counsel, especially when navigating state-specific laws like collateral source rules. They warned that rushing to close files can backfire, increasing costs rather than reducing them. Ultimately, balancing efficiency with diligence and maintaining strong communication are key to avoiding these common pitfalls.
Latest articles as of October 9
News: IIS survey confirms that it’s "AI or bust" for insurance
The root of it: In the 2025 Global Priorities Survey, conducted by the International Insurance Society (IIS), two-thirds of insurance executives ranked AI as their top technological focus – surpassing inflation, which continued its four-year run as insurance execs’ biggest financial concern. Those polled cited AI’s ability to deliver greater operational efficiency, richer analytics, and more streamlined paths to product innovation. Long a trailing concern, tech advancement is now level with climate and economic factors among core insurance business strategic priorities.
News: Regulators zap Tesla for excessively elongated claims response times
The root of it: California’s Department of Insurance (CDI) has cited Tesla’s insurance arm for “egregious delays” in handling hundreds of auto claims, alleging the automaker's insurance brand repeatedly failed to meet its legal obligations. The CDI reports it has received complaints from the insurer's customers – who are primarily Tesla drivers – since 2022. Prospective enforcement actions could impose fines or even lead to the revocation of Tesla’s insurance license in the state.
News: “Risky business?” – E&S lines soar on exploding demand for specialized coverage
The root of it: The surplus (E&S) lines segment has reached unprecedented scale, rising to 12.3 % of total P/C premiums (and 25.7 % in commercial lines) in 2024. Growing risk complexity, shrinking admitted capacity, and continued specialty demand fuel this shift. Insurers expect double-digit premium growth and further share gains in 2026 amid casualty strength and softening property lines.
News: Goldman’s data chief says AI has run out of training data
The root of it: Goldman Sachs’ CDO, Neema Raphael, warns that high-quality public data is exhausted and that synthetic data – though conceivably limitless in quantity– risks lowering model quality. Instead, Raphael points to firms’ proprietary datasets (e.g. client interactions, trading flows, etc.) as the next AI frontier, but notes the real work lies in understanding, contextualizing, and normalizing that internal business data.
News: California’s landmark AI transparency bill becomes law
The root of it: On September 29, California enacted SB 53, a sweeping AI transparency law that requires large-scale AI developers to share how they test and monitor their systems for safety. They must also report significant health and safety risks and publish updates to their safety protocols within 30 days. This is a clear sign that tighter oversight of AI is becoming the norm.
News: Coming soon to an intersection near you, a 4th traffic light color for autonomous vehicles
The root of it: Researchers at NC State University propose adding a white “follow-the-leader” light at intersections when autonomous vehicles (AVs) make up a significant share of traffic. During the “white” signal phase, AVs can wirelessly coordinate crossings while human drivers simply follow them. When few AVs are present at an intersection, the light signals revert to the traditional red-yellow-green scheme. Simulations have shown this system creates shorter delays and reduces energy consumption.
The root of it: Two Amazon Prime Air drones collided with a crane in Tolleson, Arizona, prompting FAA and NTSB investigations and a temporary local service pause. While causes are under review, the incident underscores ongoing safety and oversight challenges for commercial drone logistics – highlighting the risks regulators (and insurers) could face as Amazon and other businesses continue testing toward scaled autonomous delivery.
Latest articles as of October 2
News: How does a government shutdown during peak hurricane season affect NFIP?
The root of it: The National Flood Insurance Program (NFIP), which covers 4.7 million Americans, will be disrupted due to the government shutdown. Without further action, new policies and renewals are at a standstill, and the program’s borrowing authority plunges from $30.4 billion to $1 billion. US Sen. Bill Cassidy and other Louisiana political leaders warn that the program’s lapse could freeze home sales and worsen climate-driven insurance stress. Cassidy seeks a long-term extension of NFIP, tax relief to stabilize affordability, and other measures to strengthen CAT resilience.
News: The homeowners insurance affordability crunch presents both crisis and opportunity
The root of it: Increases to homeowners' premiums – averaging more than $2,800 nationally and nearing $8,000 in Nebraska and Oklahoma – are being driven by rising claim costs, reinsurance rates, and other capital constraints. However, some contend that continued premium inflation is not inevitable, as legislative rate caps, expanded mitigation and resilience measures, insurer pricing discipline, and other approaches may curb further hikes.
News: Businesses recognize climate risks but struggle to turn awareness into action
The root of it: A Marsh survey shows 78% of organizations now assess future climate risks, yet over half skip cost-benefit analysis when funding climate adaptation measures. Heat and water stress are rising concerns beyond flooding. Most companies pursue adaptation strategies to strengthen their risk posture, not to make their businesses more insurable – highlighting a gap between climate resilience efforts and strategic alignment with insurance considerations.
News: Auto insurers face rising costs from tariffs, older cars, and complex repairs
The root of it: The CCC’s Crash Course report shows auto insurance faces significant structural shifts affecting personal and commercial auto lines. Among the findings: Tariffs have pushed parts prices up 4% year-over-year (so far). The average total cost of vehicle repair (TCOR) topped $4,730, due to inflated part and labor costs – while an aging vehicle fleet is driving more total losses. Increasing repair complexity from device calibrations and other factors has extended repair cycle times to 17 days.
News: AI to surpass human intelligence by 2030
The root of it: In a recent interview, OpenAI CEO Sam Altman predicted that by 2030, AI might surpass general human intelligence. He expects significant breakthroughs by 2026, and forecasts AI will take on 30–40 % of human tasks in the near future. While Altman expresses concern about risks resulting from AI not aligned with human values, he nevertheless remains optimistic that responsible development can guide us through the transition.
News: And, if AI really is smarter, who benefits from the coming 20-year AI “super cycle"
The root of it: B Capital co-CEO, Raj Ganguly, predicts AI is just entering a 15–20 year “super cycle” with global impact on drug development, jobs, and deep tech. He anticipates a Silicon Valley “resurgence” and India’s emergence as an AI-native app hub. While conceding market immaturity – a “it’s frothy because people think that, in the next five years, AI is going to change the world, [but] it always takes longer than what people think,” Ganguly expects lasting transformation across healthcare, climate, and advanced semiconductors.
News: Gen Z rediscovers “boring” jobs that aren’t boring
The root of it: Accounting, a profession dismissed as dull by millennials, is seeing fresh interest from their younger Gen Z counterparts as a stable and rewarding career. With baby boomers retiring, demand for accountants is high. Yearly early accounting salaries average $93,000, with CPAs commanding $200,000/annum. Clearly defined pathways into accounting can offer a viable model for talent development for other fields to adapt.
Read our 2025 State of AI Adoption in Insurance Report for insights and perspectives on AI adoption from more than 240 insurance executives.