There's a story most of us know about insurance and technology. It goes something like this: a new technology trend emerges—telematics, blockchain, cloud computing, big data, embedded insurance... fill in the blank. The insurance industry latches on. Hype ensues. For a conference cycle or two, this is all we hear about.
Big investments follow, multiyear transformation efforts get underway… and yet, years later, nothing has fundamentally changed. Insurance is still as complex as ever, if not more so. Legacy systems handicap modern user experience (UX) efforts, multiple data sources compete instead of connect, and layers upon layers of infrastructure weigh down any real progress. Meanwhile, insurance products remain largely the same. While some customer experiences marginally improve — just enough to start to feel "modern" (great, I can pay my premium online now!) — others deteriorate (whatever happened to customer service?).
And the industry moves on, chasing the next big idea.
Will AI be any different? The answer to that question is, of course, "it depends." It depends on a lot of factors, not the least of which is the industry's motives for AI adoption. Will insurers approach AI transformation as it has past transformations, through a purely utilitarian lens, focused on operational efficiencies, cost-cutting and risk reduction? Or will it surprise us all and take a more human-centered approach to AI?
We hope to be surprised.
Can AI usher in a new golden age for insurance?
A recent report explores what the future of insurance might look like should the industry pursue AI through a human-centered lens—motivated not just by what AI can do for the business but by what AI can do for its policyholders, employees and all the people involved in the insurance ecosystem.
As customer experience designers know: What's good for policyholders, employees and people is also good business.
The report asks: Can AI usher in a new golden age for insurance? One where policies are easy to understand, affordable and tailored to customer needs? Where employees are fulfilled and empowered, with the resources to excel and flourish? Where businesses are unburdened by legacy technology, gaining streamlined access to data that helps them efficiently write and sell policies relevant to an evolving customer base? And where all of society—not just the privileged few—can access the protection and financial stability they need to thrive?
The opportunity is clear: AI can help insurance become not just smarter or faster or more profitable but also more humane. Who wouldn't want to sign on to that?
Based on decades of work with dozens of top insurers and insights gathered from thousands of policyholders, agents, brokers and employees through research, the study identified some of the biggest challenges plaguing the industry, across the insurance value chain—from customers, employees and businesses, to society at large–with a vision for how AI might elevate these experiences for everyone.
Four golden opportunities for how to use AI to make insurance more humane
1. For customers: Shifting the burden of complexity off the customer.
Insurance is inherently complex—policies are dense with jargon, products are hard to compare, and navigating claims or coverage can feel like an endless maze. This complexity creates a major barrier to delivering a positive, human experience. Customers often feel overwhelmed and frustrated, as though they're dealing with a faceless, impersonal system rather than a service designed to care for them. Despite insurers' efforts to be transparent, the intricacies of risk, coverage and pricing leave many customers feeling alienated and disconnected.
The study explores how the real promise of AI lies in its ability to combine insurance's inherent complexity with a deep understanding of the customer. Generative AI can craft highly personalized, intuitive experiences that make customers feel seen, heard and confident in their coverage—transforming insurance from a transactional process into one that feels human, empathetic and rewarding.
As AI becomes more sophisticated, insurers must navigate the human consequences—ensuring that automation enhances experiences without eroding internal expertise, weakening brand identity or diminishing the value of human interaction.
2. For employees: Alleviating employee burnout.
Insurance claims departments and call centers are critical during high-impact events like storms and natural disasters, but employees—particularly claims adjusters—are often overwhelmed by surges in workload. Long hours, limited resources and a shrinking talent pool exacerbate the problem, leading to burnout, high turnover and slower service for customers.
The report envisions how human-centered AI might offer a smarter way to manage workloads by predicting surges—using real-time data like weather forecasts—and proactively adjusting staffing. Drawing inspiration from models like healthcare's traveling nurses, insurers can integrate highly trained, well-compensated temporary workers to relieve pressure on full-time staff. This approach improves work-life balance, reduces burnout and ensures customers get faster, more empathetic service during critical moments.
While AI can fairly distribute work and manage surges, insurers must ensure it doesn't come at the cost of job stability, team cohesion or human judgment—particularly in complex or unexpected scenarios.
3. For the business: Empowering a new generation of brokers and agents.
As baby boomers retire, they take decades of institutional knowledge with them, leaving behind a generation-sized gap in expertise. This is particularly acute for brokers, claims adjusters and underwriters, whose deep understanding of products, clients and complex decision-making processes is difficult to replace. Traditional mentorship programs and documentation efforts have fallen short, as they often fail to capture the nuances of expertise or fit into employees' already demanding schedules.
The study discusses how AI offers a powerful opportunity to preserve and distribute this expertise if executed with a human-centered focus. By analyzing years of documentation, correspondence and decision-making in real time, AI can transform the tacit knowledge of experienced professionals into actionable guidance for newer employees. For brokers, claims adjusters and underwriters, this means real-time decision support that bridges the knowledge gap while fostering continuous learning.
While AI can scale expertise and streamline onboarding, insurers must ensure it complements—not replaces—human mentorship and critical judgment, which are essential for developing talent and innovation.
4. For society: Making insurance more accessible, affordable and fair.
Rising premiums, driven by climate risks, claims costs and administrative inefficiencies, are making insurance unaffordable for those who need it most. In some regions, premiums have surged by double digits while coverage has narrowed, leaving vulnerable populations exposed. Meanwhile, up to 30% of premium dollars are absorbed by outdated processes and bloated back-office operations, further inflating costs.
The report dives into how AI has the potential to transform insurance into a more transparent, affordable and utility-like service. By leveraging real-time data and automating risk analysis, AI can enable fairer premiums and faster claims processing. Combined with smart contracts, AI could revive peer-to-peer insurance models, making risk-sharing viable, scalable and equitable—particularly for underserved communities.
Still, while AI streamlines processes and lowers costs, it raises important questions: Can it preserve the sense of community and trust peer-to-peer models rely on? And what will happen to the thousands of jobs tied to insurance's administrative backbone as automation takes hold?
A human-centered path toward a new golden age
The insurance industry stands at a crossroads. AI has the potential to do what past technologies could not—transform insurance into a system that works better for everyone. But to get there, insurers must rethink their approach, shifting their focus from efficiency and cost-cutting alone to better supporting people.
The opportunity is clear. AI can help insurers meet the demands of a changing world while delivering experiences that build trust, confidence and connection. The choice now lies with the industry: Will it use AI to perpetuate the status quo, or will it seize this moment to usher in a new golden age—one where technology truly serves people?
The future of insurance is waiting. The question is, will we rise to meet it?
For a deeper exploration of these ideas and actionable strategies for achieving a more human-centered future, download our full report, A New Golden Age for Insurance.
