Revolutionizing Underwriting: How Insurers are Shifting AI Strategies to Enhance Core Risk Assessment

AI investments are evolving within the insurance industry, moving beyond simple efficiency gains to deliver real business value. As detailed in the 2026 Evident AI Index, many insurance companies are now embedding sophisticated AI technologies into their core workflows, particularly enhancing underwriting discipline and capital allocation processes. This shift is a clear indication that the industry is maturing, with a growing focus on tangible outcomes over ambitious promises.

Christian Preece, the Insurance Director at Evident, notes, “For years, insurers have competed on AI ambition, but now the spotlight is on the value being created.” This change reflects a significant leap in AI maturity, enabling firms not only to measure their impacts but also to communicate these findings with confidence. As key players begin to disclose their return on investment (ROI) data, it provides shareholders with the concrete evidence they need in response to rising concerns about AI costs.

The Insurance Workforce Transformation

Interestingly, while the broader insurance workforce has shrunk by 2.2% in the past year, the number of AI specialists has surged by an impressive 32% across the 30 insurers examined in the report. This striking contrast highlights a critical transition from simply building foundational data systems to integrating and optimizing tailored AI applications that serve unique business needs.

While data engineering remains essential, the relative need for roles focused solely on data foundations is decreasing. Instead, positions geared towards AI development and software implementation are becoming increasingly prioritized. In fact, AI specialists now make up one in every 50 employees at these insurers, signifying a shift in workforce composition.

Executive Structures Embracing AI

To further align with these transformative needs, nearly 40% of the insurers surveyed have appointed senior leaders explicitly responsible for AI initiatives. Most of these strategic appointments occurred within the last year, heralding a new level of executive oversight dedicated to fostering AI-driven growth.

Such governance is invaluable as companies move away from isolated solutions and toward comprehensive AI systems that facilitate coordinated actions throughout various stages of the policy lifecycle. The trend toward agentic AI—systems that proactively manage multiple processes—has gained momentum, with one in four new use cases demonstrating this capability, compared to just one in twenty six months ago.

Zurich’s Stellar Example

Zurich has emerged as a standout example of this industry transition, climbing from 12th to 4th place in global AI rankings by prioritizing a shared platform model over fragmented experimentation.

The insurance leader has launched ZurichIQ, a modular generative AI platform that integrates seamlessly into underwriting, claims, legal, and service operations. This cohesive architecture allows for a variety of functional tools, such as PolicyIQ for contract comparisons and GuidelinelQ for standardizing underwriting practices.

Managing complexity across various business lines can be challenging, but Zurich has established a dedicated committee to oversee AI investments and mitigate model risks. This platform-based approach enables the company to deploy AI capabilities into daily operations while maintaining a robust governance framework, supported by initiatives like their £1.3 million AI apprenticeship program.

Ericson Chan, Group Chief Information & Digital Officer at Zurich, remarked that being acknowledged as the largest AI growth insurer in the Evident AI Index highlights not just technology adoption, but a significant transformation towards enterprise-wide implementation and change. “AI is evolving into Zurich’s operating system,” he explains, enhancing every facet of decision-making and customer engagement.

Prioritizing Risk Selection and ROI

In the realm of insurance, claims typically account for a staggering 60% to 80% of premium income. Therefore, even slight advancements in fraud detection and risk selection can yield substantial financial benefits, far exceeding any general reductions in administrative costs.

Insurers are increasingly channeling venture capital and internal innovation towards data sources that offer dynamic insights into climate volatility and cyber risks. A vital indicator of this maturity is the ability to quantify and transparently disclose financial returns.

Leaders like Manulife, Generali, and Intact Financial have taken the initiative by publicly reporting AI-driven value. Estimates suggest these companies will create over $1 billion in AI-related value by the end of their fiscal periods. This level of transparency addresses the significant demand for hard data related to AI deployment costs, compelling a more rigorous performance measurement across the sector.

Looking ahead, success in this next phase of industry adoption hinges on translating these technical investments into improved underwriting outcomes. Allianz, recognized for having the largest AI talent pool in the industry, and AXA maintain their positions at the forefront by consistently investing in innovation, talent, and transparency.

Barbara Karuth-Zelle, Member of the Board of Management and Group COO at Allianz, stated, "AI didn’t change our ambition; it accelerates how we deliver on it at scale." Behind this achievement are countless moments of innovation—from faster claim processing to reimagined customer experiences and enhanced partner connectivity. The commitment to progress is unwavering, marking an inspiring transformation journey in the industry.

As the insurance sector increasingly embraces AI’s potential, a wave of opportunities awaits. Now is the time to engage with this evolution and explore how these advancements can create lasting value, not just for the industry but for every individual involved. Join us on this transformative path toward smarter, more efficient insurance solutions that prioritize the needs and experiences of customers everywhere.