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 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.