The next phase of insurtech will modernize with trust, not disruption

AI in Insurtech: The Current Landscape

The insurance technology (insurtech) sector is witnessing a significant shift as companies evaluate how they utilize artificial intelligence (AI). Recent discussions highlight how the automation process in insurtech can sometimes miss the mark, leading to ineffective results.

The Issue with Automation

According to recent insights, one of the common pitfalls in AI application within insurtech is the tendency to automate tasks that may not benefit from it. This often happens when companies apply technological solutions to the wrong problems or implement automation in a way that complicates rather than simplifies processes.

Key Players and Their Roles

The ongoing evolution involves various stakeholders, including insurtech startups, traditional insurers, and technology providers. Each has a role in shaping how AI can be effectively deployed in the industry. It’s crucial for these entities to collaborate and ensure that AI tools are implemented thoughtfully and strategically.

Who Could Be Affected?

Insurance professionals, from underwriters to claims adjusters, might find themselves at the forefront of this shift. These changes could impact how they work on a daily basis—many will need to adapt their skills to leverage AI's capabilities while avoiding potential inefficiencies.

The Path Forward

Experts emphasize the need to prioritize building trust in AI systems rather than solely aiming for disruption. By doing so, the industry can foster environments that embrace innovation while ensuring effective and efficient processes.

In conclusion, the next phase of insurtech is about modernizing through informed decisions and collaboration, rather than just seeking disruptive change.

Original Source: https://www.propertycasualty360.com/2025/08/18/the-next-phase-of-insurtech-will-modernize-with-trust-not-disruption/