Insurance spent years talking about AI. This year it actually used it

For years, artificial intelligence dominated insurance conference agendas and boardroom conversations. Every company claimed to have an AI strategy; every startup promised to reinvent underwriting; and every incumbent insurer spoke of digital transformation.

But for much of that time, the industry was experimenting more than it was transforming. This is what has changed in 2026.

This year, AI has shifted from innovation initiative to an integral aspect of the everyday operating model of insurance companies. Instead of isolated pilots, insurers are embedding AI into underwriting, customer service, fraud detection, claims processing, and internal operations.

The conversation is consequently no longer about whether the technology belongs in insurance, but how quickly organizations can deploy it responsibly while maintaining the trust that insurance has always depended on.

Perhaps the biggest change has been speed. Insurance has historically been known for paperwork, lengthy approval cycles, and manual reviews: customers waiting for days or weeks for quotes, policy changes, or claims decisions. Today, many of those time-costly routine interactions happen nearly instantaneously.

AI is helping insurers analyze documents and identify missing information before a human ever becomes involved. And importantly, it is not replacing insurance professionals. Instead, these systems are removing repetitive administrative work so employees can focus on higher-value decisions that require judgement and experience.

Companies including Allstate and Progressive, for instance, have expanded AI-powered customer service capabilities in 2026, enabling policyholders to receive quotes and answers to common questions around the clock before seamlessly transitioning to licensed representatives when more complex situations arise. Across the industry, this kind of routine-inquiry automation now contains up to 80% repetitive customer contacts, freeing licensed agents for the conversations that require human expertise.

Claims processing has also become dramatically more efficient. Computer vision models can evaluate vehicle damage from uploaded photos, while generative AI helps adjusters organize documentation and prepare reports. Now, through these enhanced administrative systems, customers receive updates faster and employees spend less time on manual paperwork.

But the shift is no longer confined to insurtech upstarts built around AI from day one; legacy carriers are catching up. USAA, one of the industry’s more traditional players, partnered with Google Cloud to build computer vision models that map a photo of vehicle damage directly to repair-or-replace predictions for individual parts – work that once required a trained estimator’s eye.

The systems don’t remove humans from the loop entirely; they simply narrow what they have to look at, letting adjusters spend their time on the judgement calls the technology can’t make.

Underwriting has undergone a similar evolution. Instead of manually reviewing dozens of documents and disparate data sources, underwriters increasingly rely on AI assistants that consolidate information and recommend next steps.

Zurich Insurance Group, for example, has continued investing in AI-assisted underwriting tools that help employees synthesize large volumes of customer and risk information more efficiently, all while ensuring that final underwriting decisions remain in human hands.

Insurance remains a business built on judgment, and AI works best when it augments that judgment rather than attempts to automate every decision.

Fraud prevention has become another area where AI is making a measurable difference. Here, the same technology helping insurers become more efficient is also aiding fraudsters create increasingly sophisticated fake documents, manipulated images, and synthetic identities.

Insurers have thus been forced to adopt equally advanced AI tools to identify unusual behaviors and inconsistencies humans might miss. Global insurers like AXA are increasingly using machine learning to identify suspicious claims activity, detect anomalies across millions of transactions, and flag cases for human investigation before fraudulent payments go out.

What we’re seeing is an AI-versus-AI environment, where technology is used on both sides of the equation. Success increasingly depends on which organizations can build the most effective detection capabilities while maintaining human oversight for complex cases.

In this context, one of the most interesting trends in 2026 has been the emergence of developed AI agents. Unlike traditional generative AI – which primarily answers questions or generates content – AI agents are beginning to execute multi-step workflows autonomously: gathering information, completing administrative tasks, coordinating between internal systems, and preparing recommendations for employees. AI Jim is only one of the thousands insurers have developed and rolled out.

Rather than replacing teams, these agents are becoming digital coworkers that can monitor compliance requirements, route documents, verify information across multiple systems, and proactively identify operational bottlenecks before they become business problems. And, although fully-autonomous insurance operations remain some way off, agentic AI is already reducing friction across organizations – and it is here to stay.

Yet amid all the excitement, it’s important not to lose sight of what matters most: insurance is fundamentally a trust business.

Customers don’t buy insurance because they enjoy buying policies. They purchase it because they want confidence that someone will be there during life’s most difficult moments. AI can improve efficiency, but it cannot replace empathy, accountability, or ethical decision-making.

Organizations that pursue automation without transparency risk damaging that trust. Consumers deserve to know when AI is being used, how decisions are made, and when a qualified human can – and does – step in.

And as regulators pay closer attention to governance, fairness and explainability – including the National Association of Insurance Commissioners’ ongoing pilot of a standardized AI examination tool across a dozen states – responsible AI deployment will become just as important as technical capability.

We’ve seen this transformation firsthand at GetCovered. Our recent acquisition of Revyse, for instance, reflects a belief that the future of insurance AI isn’t about automating isolated tasks but about connecting intelligence across the entire insurance lifecycle. By bringing together AI-powered vendor intelligence and insurance automation, organizations are aided in reducing operational complexity while maintaining the governance and transparency customers and regulators alike already expect.

At GetCovered, we’ve seen this evolution firsthand. Our recent acquisition of Revyse reflects our belief that the future of insurance AI isn’t about automating isolated tasks, it’s about connecting intelligence across the entire insurance lifecycle. By bringing together AI-powered vendor intelligence and insurance automation, we’re helping organizations reduce operational complexity while maintaining the governance and transparency that customers and regulators increasingly expect.

Looking ahead, the winners in insurance will not simply be the companies with the most advanced AI models. Rather, they will be the organizations that combine technology with exceptional customer experiences.

AI should reduce friction, not create confusion. It should simplify insurance rather than make it feel more impersonal. And the firms that remember this distinction will build stronger customer relationships while improving operational efficiency.

We’ve spent years talking about AI’s potential. In 2026, we’re finally seeing its practical impact. The future of insurance isn’t one where humans disappear from the process – it’s one where technology handles routine work, human stakeholders focus on meaningful decisions, and customers receive faster, more transparent, and more personalized service than ever before.

That’s not just a technological upgrade. It’s a better insurance experience.

Article By Brandon Tobman, CEO of Get Covered