The Future of AI in Insurance: What It Takes to Lead
- Tristan Hollands
- Sep 10
- 2 min read
Most insurers today have dipped their toes into AI, yet many still admit they’re far from being truly “AI native.” While pilots and small-scale use cases are common, only a handful of companies have successfully embedded AI deep into their business models. This gap is pushing insurers to ramp up investments in AI, searching for the right strategy to stay ahead.
Leaders that get AI right are already pulling away from the pack.
According to McKinsey research, insurers at the forefront of AI adoption have delivered more than six times the total shareholder return of their peers over the past five years. Their success comes from focusing on entire business domains, like claims, underwriting, the sales process, or distribution and reimagining how these functions operate with AI at the core. The results are tangible: higher conversion rates, stronger premium growth, faster onboarding, and more accurate claims handling.
McKinsey’s framework highlights six essential moves for insurers aiming to excel in AI:
Align leadership around a business-led AI transformation road map.
Build in-house digital talent and prepare for a future where humans and AI work side by side.
Adopt a scalable operating model with strong product management.
Leverage flexible tech architectures to innovate quickly and adapt to new AI developments.
Embed data capabilities everywhere to maximize AI’s impact.
Invest in adoption and change management, ensuring AI is embraced across the organization.
The takeaway? Success in AI is not about scattered experiments. It’s about rewiring core functions, cultivating talent, and embedding AI into the DNA of the business. Insurers that master this approach will not only outperform competitors but also be better equipped for the rapid advances in generative AI.
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