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 September 4
News: Generative AI is critical to improving and streamlining NAIC compliance efforts
News: Disruption and complexity are changing how insurers manage property claims
The root of it: The latest edition of Sedgwick’s Loss Adjusting Report highlights three distinct disruptors reshaping property claims. Climate change is driving record catastrophe losses, leaving significant gaps in insurance coverage. Tariffs are inflating construction costs, complicating replacement values and settlements. Separately, AI is transforming operations by enabling remote adjusting and faster analysis. Together, these forces demand new approaches to claims management and insurer resilience.
News: 20 years later, Hurricane Katrina still haunts CAT modelers
The root of it: Catastrophe models used during Hurricane Katrina in 2005 significantly overestimated New Orleans’ flood protections – especially the region’s levees, pumps, and walls – highlighting critical failures in risk modeling. This misjudgment contributed to massive insurance losses and serves as a warning for insurers to revisit and recalibrate models against real-world infrastructure vulnerabilities.
News: The stellar performance of Google DeepMind/Weather Lab model’s Hurricane Erin tracking inspires hope
The root of it: Google’s Weather Lab AI model accurately predicted Hurricane Erin’s track and intensity over the first 72 hours – surpassing both the National Hurricane Center’s official forecast and traditional physics-based and consensus models. This marks a major test for AI in weather prediction, showing promise for private AI models becoming trusted tools for short-term forecasting in high-impact events like hurricanes.
The root of it: Former OpenAI researcher Miles Brundage says AI-enabled growth could make a $10,000 monthly universal basic income a reality. He argues that UBI can offset job disruption for those eager to work while freeing humanity from the obligation to work. Brundage views this shift as a key justification for building advanced AI (which he identifies as one of the strongest arguments for creating AI and AGI in the first place), as well as a vital step toward avoiding "Wall-E"-type societal stagnation.
News: Relatedly, Nvidia’s valuation is now equal to 8% of the S&P 500
The root of it: Nvidia posted Q2 revenue of $46.7 billion, beating expectations and signaling strong AI demand. The company now commands about 8% of the S&P 500’s total value – a record-high concentration highlighting its outsized influence on U.S. markets. Nvidia also gave bullish Q3 guidance of about $54 billion in sales, although ongoing U.S. export restrictions to China could cloud the semiconductor giant’s longer-term outlook.
News: Tick-tock, everybody. Anthropic’s controversial opt-out user data agreement goes into effect on 9/28
The root of it: Anthropic will enforce sweeping policy modifications, announced earlier this year. The move requires all ClaudeAI users to manually "opt out" if they don’t want their future chats and coding sessions used to train AI. The upshot of this move from public sources to private chats is implied user consent to share chats, and that data may be kept for five years – signaling a momentous shift in how AI firms treat customer data.
Read our 2025 State of AI Adoption in Insurance Report for insights and perspectives on AI adoption from more than 240 insurance executives.