Transforming Insurers’ AI Strategy: Enhancing Core Risk Underwriting

Insurers are now anticipated to derive substantial business value from their investments in AI, going beyond just enhancing efficiency. The 2026 Evident AI Index reveals that insurers are integrating AI technologies into their operations to directly impact underwriting practices and capital allocation.

Christian Preece, the Insurance Director at Evident, notes that the focus has shifted from simply building AI capabilities to demonstrating the value they bring. This shift indicates a level of maturity in AI adoption within the industry, with insurers now able to measure and disclose the business value created.

As more industry leaders disclose concrete return on investment data, it provides shareholders and boards with the evidence they seek regarding the costs and benefits of AI deployment. This transparency is expected to lead to more insurers making their AI initiatives public in the near future.

While the overall insurance workforce has seen a slight decrease, there has been a significant increase in AI-specialist roles within the 30 insurers tracked in the report. This shift highlights a move towards implementing and optimizing AI solutions tailored to specific business needs, rather than just laying down data foundations.

Although data engineering remains important, roles focused on AI development and software implementation are gaining prominence. AI specialists now make up a significant portion of the workforce at insurers included in the Index.

Executive structures within insurance companies are also evolving to accommodate the requirements of AI adoption. Nearly 40% of the indexed insurers now have senior leaders responsible for AI initiatives, indicating a new level of oversight for AI-driven growth.

As insurers move from individual AI solutions to more integrated AI systems that span various stages of policy administration and claims processing, the adoption of agentic AI has increased significantly. This shift towards more comprehensive AI orchestration is a key trend in the industry.

Zurich’s Approach as a Model

Zurich exemplifies this transition by moving up in global rankings through its emphasis on a shared platform model rather than decentralized experimentation. The implementation of ZurichIQ, a modular generative AI platform, has been pivotal in integrating AI into various operational aspects of the business.

Challenges in such deployments typically revolve around maintaining oversight across diverse business lines. Zurich addresses these challenges through a dedicated committee overseeing AI investments and model risk management. The platform approach enables Zurich to deploy AI capabilities effectively while adhering to a consistent governance framework.

Ericson Chan, Group Chief Information & Digital Officer at Zurich, emphasizes that being recognized as a leading AI insurer signifies a broader transformation towards enterprise-wide AI execution and change. The AI360 strategy at Zurich aims to embed intelligence across workflows, decisions, and customer outcomes throughout the organization.

Emphasis on Risk Selection and ROI

Given that claims typically represent a significant portion of premium income, even minor enhancements in fraud detection and risk selection can have a substantial financial impact. Insurers are now directing their efforts towards data sources that enable dynamic analysis of climate volatility and cyber threats.

Leading insurers like Manulife, Generali, and Intact Financial have been at the forefront of reporting AI-driven value, demonstrating tangible financial returns from their AI initiatives. This transparency sets a precedent for the industry and encourages more rigorous performance measurement across the sector.

Market leaders such as Allianz and AXA maintain their positions through sustained investment in innovation, talent, and transparency. Allianz, in particular, has the largest AI talent pool in the industry and has implemented numerous AI use cases worldwide.

Barbara Karuth-Zelle, Member of the Board of Management and Group COO at Allianz, stresses that AI accelerates the delivery of their ambitions on a large scale. This recognition reflects the transformative impact AI has had on various aspects of their operations.

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