{"id":23433,"date":"2025-04-25T15:49:46","date_gmt":"2025-04-25T15:49:46","guid":{"rendered":"https:\/\/www.insurance-canada.ca\/?p=82929"},"modified":"2025-04-25T15:49:46","modified_gmt":"2025-04-25T15:49:46","slug":"will-ai-really-transform-the-insurance-industry","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2025\/04\/25\/will-ai-really-transform-the-insurance-industry\/","title":{"rendered":"Will AI really transform the insurance industry?"},"content":{"rendered":"

By Mark Breading, Senior Partner of Transformation Services, ReSource Pro<\/em> \u2014<\/span><\/h4>\n

With the thousands of blogs, articles, and presentations on AI and P&C insurance saturating the market, you may be wondering, \u201cWhat more can be brought to the table?\u201d While this may seem like just another blog on the topic, our research at ReSource Pro goes deep into the current state of AI across the ecosystem \u2013 agents\/brokers, MGAs, and carriers.<\/p>\n

It would be easy to share real and potential use cases, and I have been doing so in many forums and with many customers over the years. However, here, I want to address AI from a completely different angle \u2013 how AI will change the customers and risks<\/strong> of the industry.<\/p>\n

How is AI transforming insurance, and who does it impact?<\/h3>\n

Most of the discussion on AI and insurance centers on operations\u2026 and there is certainly great potential to improve operational efficiency and effectiveness for all entities across the ecosystem. More efficient workflows and improved decisioning are always highly sought after, and AI solutions enable the industry to take those to new levels. But it is worth spending time thinking about the impact of AI on the external environment \u2013 customers across personal lines, commercial lines, and various industry verticals.<\/p>\n

When AI is combined with the Internet of Things, there is great potential to dramatically reduce risk for consumers, businesses, and governments. Analyzing real-time streams of information about things and people and taking automated actions may go a long way in improving the risk landscape. There is a tremendous opportunity to reduce accidents, quicken incident response time to mitigate damages, and find innovative ways to address coverage gaps, just to name a few possibilities. Can we engineer away risk? Unlikely. However, it is likely that new risks will emerge due to technology (they already are) and that existing risks will become more complex.<\/p>\n

How will AI impact insureds?<\/h3>\n

Our advice for every broker, MGA, and carrier is to consider the customer segments they serve and how technology and AI will change their world. Will we reach a point where homes are so smart and vehicles so autonomous that we see claims plummet? Will devices, data, and AI in specific work environments dramatically change workers\u2019 comp insurance? Will the IoT and AI change how we manage risks for commercial properties in various industries? The better question is how tech in these spaces will evolve over time and what that will mean for insurance distribution, product, underwriting, pricing, servicing, and claims. And, oh yes, loss control engineering. Those who leverage their expertise on customers, risks, and technology to help manage and improve risk for their customers will be successful in the future.<\/p>\n

So, the answer to the question of whether AI will truly transform the insurance industry is a resounding yes. When the full picture of industry operations, customer segments, and risks is considered, there is tremendous potential to radically change P&C insurance. How we mitigate, manage, and finance risk is poised to change significantly, and the industry must align all aspects of the business to these coming realities.<\/p>\n

For more information and perspectives on AI in the P&C insurance industry, visit ReSource Pro\u2019s AI Insights page<\/a>.<\/p>\n

About The Author<\/h4>\n

Mark Breading<\/strong> is known for his insights on the future of the insurance industry and innovative uses of technology. Mark consults with insurers and technology companies on forward-thinking strategies for success in the digital age. His inventive methodologies, fresh ideas, creative conceptualizations, and ability to incorporate InsurTech and transformational tech in business strategies are unparalleled. He also leads SMA\u2019s research program, publishing 25-30 research reports per year and conducting various custom research projects for insurer and vendor clients. His thought leadership in the areas of InsurTech, transformational technologies, customer experience, and digital strategies has earned him a ranking of one of the \u201cTop Global Influencers in InsurTech\u201d by InsurTech News and Onalytica and a place in the ten finalists for the \u201cTop Global IoT in Insurance Influencer Award.\u201d<\/p>\n

Before joining SMA in 2009, Mark spent 25 years with IBM in roles including the Global Insurance Strategist and Director of Global Financial Services Executive Conferences in addition to leadership roles in consulting and marketing. Mark co-developed IBM\u2019s Account Based Marketing program and led the global project office to implement ABM across all industry verticals worldwide. Mark has held both technical and business roles in sales, consulting, marketing, and business strategy and has advised insurers around the world for almost 30 years.<\/p>\n

About ReSource Pro<\/strong><\/h4>\n

ReSource Pro brings integrated operational solutions to insurance organizations to improve growth, profitability and insurance outcomes. Headquartered in New York, ReSource Pro\u2019s global service centers address client operational needs around the clock. Recognized as an industry thought leader and listed as one of Inc. 5000 Fastest Growing Private Companies annually since 2009, the company is renowned for its focus on innovation, service excellence and trusted partnerships, and its unique productivity platform for insurance operations. More than 5,000 ReSource Pro employees provide dedicated support to hundreds of insurance organizations, consistently achieving a +97% client retention rate over a decade. For more information, visit www.resourcepro.com<\/a>.<\/p>\n

SOURCE: Strategy Meets Action (SMA)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

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