The home insurance sector is frequently perceived as a “follower” of innovation in comparison to other insurance verticals, such as auto. Specifically, touchless claims—a procedure in which the adjuster and customer do not interact face-to-face—have skyrocketed in the number of vehicle claims but are still mostly considered as aspirational goals for house insurance in general.

Since the COVID-19 epidemic four years ago, there has been a significant and rapid increase in homeowner claim technology, virtual inspection choices, and the desk adjuster model. This has resulted in an urgent demand for innovation. Property claims were being handled and resolved without an adjuster or other contractor present for inspection or evaluation on-site often in the history of our sector.

While the pandemic was mostly responsible for the positive digital revolution, not all the results were ideal. Adjusters were occasionally left to oversee a disorganized system of vendors, procedures, and tools despite the industry’s adoption of new tools and technology.

Recently, more difficulties have surfaced on top of previous difficulties. It’s commonly known that the pandemic caused inflation, and the sector was negatively impacted by labor shortages and supply chain problems.

Data indicates that the homeowners’ insurance industry has seen rising claim severity for seven years running, even in the absence of the pandemic. According to CoreLogic statistics, recent hail damage shattered previous records at every National Weather Service office. Lastly, JD Power reports that in just two years, repair cycle durations have increased by 33%, or around six days.

In the face of these challenges, adjusters are expected to perform greater duties and process claims at a historical rate.

Collaboration is essential in identifying the optimal blend of claim touchpoints to enhance efficiency and accuracy, benefiting homeowners, adjusters, and insurers alike. The realm of homeowners’ insurance stands at a pivotal juncture, with the industry prioritizing swift and fair settlements.

Because each home is unique, many claims pertaining to residential property will never be “touchless.” Evaluating the damage and repairability of a home can be a complicated process. However, there are several chances to “touch less,” which leads to a seamless homeowner experience, an optimized adjuster workflow, and an effective carrier claims management program.

Insurance companies that successfully handle low touch claims usually have the following characteristics, albeit the exact number of touchpoints will depend on the specifics and requirements of each claim.

Streamlining decision-making through ‘touchless’ processes

Homes aren’t standardized, as was previously mentioned, but that doesn’t mean decision-making can’t be. Large volumes of data are managed or at the disposal of homeowners’ insurance firms, ranging from policyholder and claim history to material availability and cost.

The advancement and settlement of claims can be standardized with the use of such data. For example, centralized or third-party analysis can reliably respond to questions about repairability, pricing, material availability, and timing following the first collection of measurements and photos of damage. All of that can happen without the requirement for a follow-up visit or other additional touchpoints. More significantly, though, is that it enables carriers to handle claims more uniformly, regardless of their location or level of severity.

Embracing embedded intelligence through ‘touchless’ processes

It goes without saying, but it must be acknowledged that modern technology can also work in our favor. It could be revolutionary to combine massive data sets with digital technologies that expedite our ability to make informed judgments.

There is much talk about artificial intelligence (AI) and machine learning, and these technologies are becoming more and more important in automating claims. There are also interesting new ways that the industry is utilizing “big data.” Although most property disputes will probably never be managed entirely by this technology, it will speed up procedures without compromising accuracy.

Though technology is undoubtedly important, as everyone reading this tale knows, it can also be harmful. A disorganized and confused process will result from adjusters and homeowners investing in an excessive number of different tools and resources. If intelligence justifies the trouble and any negative effects on adjuster workflows, then investing in strong data and decision-making assistance is worthwhile.

Our sector must embrace consolidation and integration as it works to create a culture and practices that support “touchless” claims. Rather than adding steps to an already complicated process, we should seek ways to integrate data and intelligence into current workflows.

Internal alignment

Without the cooperation of every employee, no organization will be able to implement the change. Although difficult, change management is essential, particularly when one approach has long been “the way”. However, you can use your statistics as a very effective instrument to gain support.

Utilize the data to demonstrate how a better strategy will make day-to-day operations easier and more productive. For example, illustrate how the number of adjuster touchpoints and average claim cycle times are related.

Although the settlement amounts for cars and homes will never be the same, there are some similarities that can assist homeowners’ insurance enter a new, more precise, and more efficient era of claims processing. Although it’s unlikely that a totally touchless ecosystem will ever be achieved, developing a less touch process can be a catalyst for industry stabilization and the creation of a bright future.

Today, technology has become a cornerstone for driving efficiency, fostering innovation, and enhancing profitability.

From the early adoption of digital platforms for policy management to the integration of data analytics for risk assessment, insurers have continuously embraced technological advancements to stay competitive in a rapidly changing market.

Artificial Intelligence (AI) is at the forefront of this technological revolution, offering opportunities for insurers to improve decision-making, enhancing customer experiences, and reap many benefits. However, alongside the promises of AI lie significant challenges that insurers must overcome to unlock its full potential.

This article attempts to uncover why AI adoption has been low, provide remedies for those challenges, while also examining successful problem-solvers.

Challenge 1: Data quality and quantity

Inaccurate or insufficient data can lead to biased predictions and erroneous decisions, posing risks to insurers and customers alike.

For instance, AI systems, particularly Generative AI, may produce inaccuracies known as “hallucinations,” where false information is generated. These inaccuracies undermine the reliability of AI models.


DataRobot offers AI-driven solutions for data preparation, enabling insurance companies to clean, structure, and enrich their data efficiently. Their platform empowers insurers to leverage advanced analytics and machine learning to improve data quality and make more accurate predictions.

Challenge 2: Data privacy and security

For data to yield reliable insights, as explained in the previous paragraphs, a substantial amount must be collected. However, this often blurs the lines regarding the kinds of data that can be collected.

Data privacy regulations such as GDPR and HIPAA typically restrict insurers and other entities from overstepping these boundaries, with strict enforcement backed by heavy legal penalties.

Moreover, robust, and advanced security measures must be implemented to thwart data breaches, albeit at an additional cost.


Acquired by Informatica in mid-2023, Privitar offers privacy engineering solutions for organizations, including insurance companies. Their platform facilitates the anonymization and de-identification of sensitive data, ensuring compliance with data protection regulations while enabling meaningful analysis and insights.

Challenge 3: Interpretability and explainability

Often, AI algorithms operate as “black boxes,” lacking transparency and making it challenging for insurance professionals to comprehend AI-driven decisions.

“Black boxes” in AI refer to artificial intelligence systems whose inputs and operations are not visible to the user, or another interested party. Essentially, a black box represents an opaque system. Black box AI models reach conclusions or decisions without offering explanations on how they were derived.

This lack of interpretability can foster skepticism and distrust among stakeholders, impeding the adoption of AI technologies.

Insurers must prioritize the development of AI models that offer clear explanations for their decisions, allowing stakeholders to trust and validate AI-driven outcomes.


DigitalOwl’s AI solutions prioritize transparency and explainability, providing clear reasoning for every decision and enabling insurance professionals to comprehend the underlying factors driving AI-driven outcomes.

By incorporating features that allow stakeholders to trace the decision-making process of AI models, insurers can cultivate trust and confidence in AI-driven processes. For instance, all DigitalOwl’s data points are clickable, directing users directly to the source document from which the data point was extracted.

Challenge 4: Regulatory compliance

According to a recent YouGov poll, health insurance ranks sixth among the industries most Americans believe should be regulated. , health insurance ranks sixth among the industries most Americans believe should be regulated.

Navigating the heavily regulated insurance industry while implementing AI solutions necessitates adherence to guidelines on underwriting, claims handling, and customer communication.

Non-compliance with regulatory standards can lead to fines, legal liabilities, and, worst of all, damage to the company’s reputation.

Insurers must stay updated on regulatory requirements and ensure that their AI systems comply with industry regulations.

Problem-solver offers regulatory compliance solutions powered by AI and machine learning. Their platform helps insurance companies stay up to date with regulatory changes and requirements by monitoring and analyzing regulatory content from various sources.

This enables insurers to ensure compliance with industry regulations and reduce the risk of non-compliance penalties.


While challenges like data quality, privacy, and regulatory compliance persist in implementing AI in insurance, proactive solutions like those offered by DigitalOwl, DataRobot, and many others around the globe pave the way for enhanced efficiency, transparency, and trust in AI-driven processes.

By addressing these challenges head-on and leveraging advanced technologies, insurers can unlock the full potential of AI to drive innovation and profitability in the insurance industry.

An enormous transition from the last 35 years of worldwide mass production of products and services back to fragmented, protectionist production networks and supply chains is a challenge that the property and casualty (P&C) insurance sector has never faced before.

It’s true that carriers know how to endure bad times. Upon a calamity, the insurance sector steps in to restore what has been destroyed. Utilizing dispersed worldwide production systems has allowed them to accomplish this at a high rate of speed, volume, and (relatively) cheap cost.

But there is a limit to this period of consistent, inexpensive abundance.

Currently, interruptions in the supply chain are having a profound effect on everyone, including insurance. In January and February of last year, for instance, trade volumes in the Panama Canal decreased by 32%, while trade volumes in the Suez Canal decreased by 50% over the same period. Insurance is impacted by these and similar situations.

Imagine that a community is attacked by a powerful storm. That occurs frequently. 88.5% of American counties saw the declaration of a natural disaster between January 2013 and January 2023. In those situations, the demand for various personal property goods, auto components, and building supplies and tools quickly spikes. When such materials are in short supply, what happens? All in all, insurers still have contractual obligations to fulfill, and as a result, expenses rise, losses mount, and claimants endure protracted delays. Everyone is at a disadvantage.

The two main factors influencing supply chain changes are nationalism and demographics.

China is facing a dropping birth rate that could influence its labor force, and the country’s population fell by 2 million in 2023 alone. As major hubs for global industry, South Korea, Japan, and Germany all have fast aging labor forces; as a result, their working populations will decline, and their output will decline as well. Other nations are following suit. For instance, the U.S. population will peak in 2080 and then begin to fall, despite significant positive immigration flows.

On the other hand, a new era of geopolitical instability has been brought about by the rise of nationalism, current conflicts like the wars in the Middle East and Ukraine, anti-globalization sentiments in the United States, and “de-risking” in Europe. A fragmented world of protectionism and conflict threats is replacing the formerly uncontested supremacy of a global commercial network. In addition to reverting to historical norms, this also represents a radical reconstruction of contemporary supply chains that have enabled the widespread, reasonably priced replacement of insured items during the past few decades. Both the industry and its clients will be impacted.

These difficulties are made worse by the disparity between the overall demand and supply for insurance. The need for coverage is rising in tandem with the frequency of losses. The inability of certain authorities to permit appropriate pricing in conjunction with these losses limits insurers’ ability to take on comparable risks. Disruptions in the supply chain and rising claims settlement expenses intensify this disparity, forcing insurers out of the market while the need for insurance rises.

Strategies for insurance companies to adapt

Though difficult to implement, the answers are easy to explain. Carrier commitments to manage this changing environment include:

  1. Quick, smart adjustments to underwriting and pricing
  2. Effective yet affordable risk-reduction techniques
  3. Agreed upon supplier chain terms

With enough focus, the following can be accomplished.

  • Accelerated underwriting speed

Climate change, supply chain problems, and legislative barriers can quickly render certain geographic areas or risk categories uninsurable. In certain situations, insurers need to be able to respond with eligibility steps accurately and promptly.

  • Price reflecting speed

2020’s experience has shown us that we must react to risk and pricing fluctuations far more quickly. However, we need to use the data available with greater sophistication. Insurance prices are skyrocketing, and those who cannot quickly incorporate new, highly predictive characteristics into their ratings may face adverse selection. Years used to be the measure of speed; today, it’s months, and for top insurers, it’s weeks.

  • Balance of managing risk

Options for reducing risk are always growing. In a post-globalized environment when replacement costs are higher and replacement timelines are longer, risk mitigation as opposed to loss replacement is looking more and more appealing from an economic standpoint.

  • Oversee supply chain contracts

Manage the claims ecosystem proactively to guarantee preparedness in high-risk locations and for high-demand commodities. This might involve creative approaches to inventory management, such as storing essential parts to prevent shortages, or hedging techniques with vendors of products for regions.

The globe is shifting because of deglobalization. It won’t be simple for insurers (or other businesses) to adjust to this shift, even with their tools. All-out effort, strategic planning, and a proactive, open-minded mindset will be needed.

The earliest form of insurance involved people pooling their resources into a common fund to compensate those facing specific losses like funeral expenses, which were relatively easy to prove.

Over time, insurance evolved to cover more complex risks involving numerous people, activities, and properties. This transition led to the need for an independent party to conduct risk assessment and investigate claims, resulting in the creation of contractual policies governing the process.

With technology advancing rapidly, peer-to-peer (P2P) insurance has become a reality in today’s world.

How does peer-to-peer (P2P) insurance look today?

In P2P insurance, policyholders contribute premiums to a shared pool, which is used to pay out claims when a member experiences a covered loss. Any surplus funds may be returned to members or donated to a chosen charity.

Advanced technologies like Artificial Intelligence and Blockchain enable the implementation of P2P insurance among a diverse group of individuals with varying needs and risk tolerances, while minimizing reliance on a central governing party.

Notable examples


Often hailed as the world’s first P2P insurance company, Lemonade utilizes a full-stack carrier approach, combining technology with a peer-to-peer business model to streamline insurance processes and deliver value to customers.

Through its platform, Lemonade has revolutionized the insurance experience, offering transparent pricing, quick claims processing, and a commitment to social impact by donating excess premiums to charitable causes.

To date, Lemonade is the only company that still implements P2P insurance. Others have tried implementing it once but with limited success, leading to their downfall (or lack of implementation thereof).

These include:

Friendsurance (2010)

Friendsurance, a groundbreaking German startup, disrupted the insurance landscape with its social network-based model. Users banded together with friends or family, sharing coverage and incentivizing risk prevention.

The online platform provided a range of policies, from electronics and bikes to household and liability, while offering users rewards for damage reports and claims.

Xiang Hu Bao

Introduced by Alipay in 2018, Xiang Hu Bao represents a milestone in online mutual aid platforms in China, boasting over 100 million participants. Its mission is to foster inclusive health protection, particularly for lower-income and rural individuals.

Members contributed approximately $4.25 annually which was deducted from their Alipay accounts. Coverage extended up to $40,000 for specific illnesses, with claims processed via blockchain technology.

The platform levied up to 8% commission from the claims pool, and complex cases were adjudicated by a jury comprising of platform members.

Teambrella (2015)

Teambrella, a Bitcoin-based peer-to-peer (P2P) insurance platform, seeked to revolutionize the insurance industry by eliminating the need for traditional insurers.

Founded by Russian entrepreneurs Alex Paperno, Eugene Porubaev, and Vlad Kravchuk, Teambrella allowed users to provide coverage to each other without intermediaries.

Users formed teams and contributed funds to a shared Bitcoin wallet, providing coverage for various risks. Claims were processed through a voting system, which incentivized honesty and transparency.

Final thoughts

The evolution of insurance from its earliest forms of communal pooling to the modern era of peer-to-peer (P2P) insurance showcases how technology and innovation can work together to create a disruption in the insurance space.

However, despite the promises of P2P insurance, several challenges persist. One major challenge is the risk of moral hazard, where insured parties may alter their behavior to take advantage of the shared risk pool.

Add to that, the decentralized nature of P2P insurance platforms introduces vulnerabilities to fraudulent activities like false claims or identity theft.

Lastly, regulatory compliance and legal complexities pose ongoing challenges for P2P insurers operating in various jurisdictions, as many countries still lack formal legislation to govern them.

Addressing these challenges requires continuous innovation, robust risk management practices, and effective regulatory oversight, the lack of which has seen many insurtechs like Friendsurance, Teambrella, and many others that made headlines in the 2010s failing to materialize results.

It’s a Saturday afternoon as you enter a house. Before you, a toaster spits sparks, an aquarium teeters on the brink of bursting, and the bathroom floor is flooded with water. But none of this is happening. Armed with your smartphone and Allianz’s augmented reality app “Haunted House,” you’re experiencing everyday scenarios transformed into vivid lessons on potential home hazards. This isn’t just a quirky display of futuristic technology; it’s a strategic initiative by this UK-based insurer to boost homeowner awareness and preparedness for the unexpected.

Similarly, Australian-based NRMA Insurance leverages virtual reality to deliver stark lessons in road safety. Their VR car crash simulation places participants inside a real car, enhanced with a hydraulic system that moves in sync with the harrowing scenes played out through their VR headsets. This visceral experience aims to instill a deeper understanding of crash dynamics and the importance of cautious driving.

Of course, these are rather dramatic examples of how insurers can leverage AR and VR to engage with their customers—how many people want to willingly experience a car crash, simulated or not? Still, many other use cases exist for these technologies in the insurance industry, from risk assessment and damage estimation to training adjusters and enhancing customer service interactions.

What exactly are AR and VR?

Both Augmented Reality (AR) and Virtual Reality (VR) are immersive technologies that enhance and alter our perception of the world. AR layers digital information onto the real world. Heard of Pokémon Go? That’s AR. In contrast, VR creates a fully immersive experience, typically through headsets, transporting users to entirely virtual environments, commonly used in gaming. Increasingly, businesses across various sectors are adopting these technologies to train employees, improve customer experience, and streamline operations. And the insurance sector is no exception here.

AR and VR use cases in the insurance sector

AR-powered visual claims

A recent report predicts that by 2025, over 80% of auto claims and 50% of non-injury claims will be processed virtually. A big part of this shift is AR-powered visual claims. In the past, adjusters would often have to assess damage in person or rely on less-than-ideal images from customers. But today, policyholders can initiate live video sessions, using their smartphones to show adjusters the damage in real time.

Adjusters use AR technology to overlay measurements directly onto the video feed, precisely gauging the extent of damage without physical presence. They can also pinpoint the damage location using geolocation, pause the feed to examine details more thoroughly, and instantly share claim forms and documents for electronic signatures. This method not only reduces the need for onsite visits but also accelerates the entire claims process.

AR for field risk assessments

Zurich Insurance has changed the way its risk engineers and field inspectors conduct on-site evaluations through AR glasses. These professionals often work in challenging environments where they need to climb ladders or navigate tight spaces, making it cumbersome to handle traditional handheld devices for accessing vital data like checklists or site plans. By using AR glasses, Zurich’s engineers and inspectors can view multiple screens of information directly in their line of sight. This hands-free technology allows them to consult in real-time with remote experts using “see-what-I-see” communication capabilities, enhancing decision-making and efficiency directly from the field.

AR and VR for training

VR and AR are making training more interactive and human centered. With VR, new adjusters can step into realistic simulations, practicing on virtual properties to hone their skills safely and confidently. For example, an auto insurance adjuster might use VR to step into a virtual accident scene. They could examine a digitally reconstructed car crash, assess the extent of damage from multiple angles, and practice writing accurate estimates based on their observations. Similarly, a property insurance adjuster might engage in a VR simulation of a flooded home. They would navigate through the house to identify water damage, measure the level of moisture in walls using virtual tools, and simulate interactions with homeowners.

And then there’s AR, which brings training into the real world, allowing trainees to see data and damage assessments superimposed right before their eyes on actual sites. A good example of this is an AR training program by Farmers Insurance. Before the AR/VR program, new hires would walk through a two-story house in L.A. that had significant damages. The problem was that the house was set up in the same way every time, meaning the new employees weren’t getting enough exposure to different scenarios. But with the new AR/VR headsets, they could walk through six different floor plans, seeing a whopping 500 different damage scenarios.

Customer service

Here, AR and VR are mostly used to boost personalized experiences and foster a deeper connection with customers. It should come as no surprise that the insurance industry in general has a reputation for being a little dry or dull. This is mostly out of necessity – insurers must convey information accurately, and they’re typically dealing with sensitive topics.

However, that doesn’t mean there isn’t a place for more immersive technologies that can lighten things up a little. Potential use cases here include AR or VR customer service agents who can answer basic customer questions, troubleshoot issues, or even schedule appointments with human representatives. This can provide 24/7 support and reduce wait times for customers. Another good example is personalized advice on how to make homes safer using an AR app that offers recommendations as you move through your home.

Lastly, insurers could use AR and VR to make choosing or deciphering insurance policies less confusing and stressful. For example, an AR app could scan physical policy documents and then overlay interactive explanations on top of complex terms and clauses, making them easier to understand in the context of the policy.

Final thoughts

Augmented Reality (AR) and Virtual Reality (VR) are redefining engagement across the insurance sector. From immersive training simulations that prepare adjusters for real-world scenarios to interactive apps that educate homeowners about potential risks, these technologies are enhancing both customer service and operational efficiency. As the industry embraces these tools, AR and VR are not just transforming interactions but are also improving the accuracy and empathy of services provided, ensuring a more informed and responsive insurance landscape.

Which technologies are North American life insurers investing in and finding appealing?

Top corporate priorities in 2024 will include innovation, digital acceleration, and cybersecurity. These will also influence how life insurers will approach their fintech investments. Technology leaders at life and annuity companies, both individually and collectively, are closely assessing how their business and investment objectives mesh with their IT requirements, as reported in the Celent research Dimensions: Life Insurance IT Pressures & Priorities 2024: North American Edition. The following highlights findings from a survey conducted among chief information officers of life insurance companies.

Finding equilibrium in investment priorities

Growth is still impacting IT spending overall, and insurers are optimistic about the industry’s state. This trend shows that the industry is embracing tech investments as a catalyst for success, demonstrating that it has not just recovered from the economic hardships faced in the years following the pandemic. Insurance companies are concentrating on cost containment and reduction at the same time, which means that there is more control over expenditure than there was during the previous three years.

The goal of insurers is to achieve a balance between innovation (pursuing new technologies) and legacy (maintaining basic systems). A little under half of IT spending is allocated to the upkeep and improvement of current systems, both new and old. Additionally, insurers are putting their recent investments into practice.

It is evident that the insurance business is pursuing a dual-purpose investment strategy to uphold established institutions and take advantage of the disruptive opportunities presented by new technologies. The distribution of an IT budget across the primary activities—greenfield projects, innovation, and transformation, deploying new and upgraded systems, and maintenance and upkeep of existing ones—depends on the company’s size (small, midsize, or large).

Projected expenditure analysis

North American life insurers’ IT spending has returned to pre-pandemic levels, indicating a reduction in IT budgets and an emphasis on cost management in comparison to the preceding three years. Chief information officers are closely reviewing IT spending and how it fits with priorities and economic conditions after years of digital investments.

While 2023 IT budgets were lower than 2022 budgets, most insurers anticipate raising their 2024 budgets; nonetheless, one-third of insurers plan to either cut or freeze their budget. The average predicted increase for insurers of all sizes is expected to be 8.9% this year, with an average budget of 4.6% of premiums expected by 2024.

Many budgetary resources are going toward improving and implementing recent purchases. Most CIOs’ expenditures are devoted to sustaining their present systems.

Some notable points are as follows:

  • Insurance companies prioritize investing in technologies that enhance the customer experience and increase agent productivity. Policies and distribution partners’ policyholder portals, distribution management, and illustration/quoting systems are among the front-end components for which significant expenditures are anticipated.
  • The most notable improvements are being made to the back-office functions of underwriting. While not at the same levels as the previous two years, policy administration and servicing (PAS) systems remain a major area of investment. New digital capabilities for billing are replacing repetitive payment mechanisms.
  • The primary motivation behind investments in data and analytics is the necessity to preserve and improve current systems, with the most notable improvements being in the areas of data management, MLOps, and open data integration.
  • Because so many CIOs find the cloud’s value propositions—security, scalability, and accessibility—to be enticing, cloud deployments are expected to increase across all systems. Small insurers are less likely than their bigger counterparts to be expanding their use of the cloud, with a third of major carriers significantly increasing their use of the cloud for fundamental backend systems and more than four out of five midsize insurers using it for data and analytics.

Cybersecurity is one notable area where spending has surged. Cybersecurity has risen from fourth place to the top this year, with spending being driven mostly by this priority. Today, over 90% of insurers rank cybersecurity as a major or high concern, mostly because of the increasing risks posed by ransomware and computer breaches. The amount of the budget allocated to cybersecurity in 2023 (6.9%) does not commensurate with the importance of tackling cyber hazards, notwithstanding the claimed priority. According to Celent’s projection, the amount spent on cybersecurity would rise by 8.6% in 2024 as insurers search for the right instruments to combat emerging risks. To completely stop the ever-evolving cyber threats, nothing has been successful. There will be a need for additional investment.

Welcoming the era of artificial intelligence

Large language models (LLMs) and generative artificial intelligence (GenAI), though they have been a hot topic for the past year, are not yet being actively employed by life insurers in North America, but many of them plan to use them and are developing use cases for them. While just 5% of respondents claimed that GenAI/LLM technologies are now being produced, 75% stated that they had budgeted for GenAI/LLM projects that are either planned for 2024 or are already in the research stage. This suggests that these technologies are being actively pursued.

In life insurance, the areas where GenAI and LLMs are regarded to be most valuable are customer experience (CX), onboarding, marketing, code development, servicing and operations, underwriting, and rating. Two AI application cases that are now being used in many different industries are automated data science pipelines and speech-to-text processing. Relatively speaking, based on reports, the AI use case that the property and casualty insurance side of the business is now adopting the most is geographical analysis or picture recognition. This demonstrates how AI technologies and use cases that are most suited for their specific needs are being adopted by the insurance sector.

The ease of access to the data, the quality of the data, the data/information repositories, and the auditability of the data are all factors that insurers must carefully consider as they prepare to adopt GenAI use cases. Ensuring the data is viable for GenAI activities and addressing any shortcomings requires well-thought-out plans for data infrastructure and governance.

Addressing present and future demands

To meet their immediate and long-term requirements, insurers must carefully consider their investments in technology, whether it be new or old. Successful implementations will require a strategic evaluation of fast shifting factors, ranging from the possibility of AI-driven solutions to the impact of cyber threats.


LenderDock Inc., the leading provider of online Property and Casualty Insurance policy verification and automated lienholder process management services, is pleased to announce an enhanced partnership with West Point Insurance Services.

“The team at WestPoint are fiercely loyal to their growing customer base and do everything they can to strategically improve service and support.  Operationally, their investment in key technologies like lienholder automation reflects a forward-thinking approach to mitigating unnecessary or inefficient workflows within the business,” said Frank Eubank, LenderDock CEO.

West Point will now take full advantage of LenderDock’s Base platform, which includes the VERiFi™, LIENSure ™, and LENDERDocs™ solutions. West Point has already previously implemented the NOTiFi™ service.

The first tool, VERiFi™, is a real-time insurance policy verification system. VERiFi™ eliminates the need for phone calls for policy verification, resulting in a quicker and more effective process.

With the second tool, LIENSure™, lenders can send adjustments to the carrier directly, automating the process of changing policy information. This enables carriers or providers to process the updates quickly and effectively in accordance with their own protocols.

Finally, LENDERDocs™ offers financial third parties electronic and real-time access to critical policy-related papers including EOIs, Certificates, and others. This facilitates the acquisition and dissemination of these documents, making it simpler for business partners to handle their policy data.

“Partnering with LenderDock allows us to solve the specific problem of freeing up time for UW/Billing areas, empowering our employees to focus on providing excellent service to insureds. West Point chose LenderDock for their forward-thinking solution, enabling mutual growth without the burden of administrative tasks,” said Bobby Norvell, VP Business Development at West Point Insurance Services.

About West Point Insurance Services

West Point Insurance Services pairs specialized technology with a combined 135+ years of Property & Casualty industry knowledge to help you effectively scale, rapidly launch new programs, and consistently ensure quality and compliance. West Point has garnered years of experience solving difficult system challenges with customized software and Business Process Outsourcing solutions. They offer a mature business process, complete transparency, and 100% onshore resources to help their clients make the most of our Property & Casualty insurance software.

About LenderDock Inc.

Headquartered in Salt Lake City, Utah, LenderDock Inc. is the leading provider of online Property and Casualty Insurance policy verification and automated lien holder process management services. The policy verification-as-a-service (VaaS) platform offers banks, lenders, and financial third parties the ability to digitally verify and correct home and auto policy-related data in real-time.

Contact West Point Insurance Services

Bobby Norvell

VP Business Development


As artificial intelligence continues to advance, the insurance industry is harnessing its power to enhance various aspects of its operations. 

From machine learning and natural language processing to robotic process automation and audio/video analysis, insurers are leveraging AI technologies to deliver improved products and services. Customers are also reaping the benefits through practices like comparative shopping, expedited claims processing, 24/7 service availability and enhanced decision-making support.

In this guide, we will explore how AI solutions are transforming the insurance sector across various sub-industries and operations.

What is artificial intelligence?

The rapid adoption of AI technologies is evidenced by significant milestones like ChatGPT amassing 100 million users in its first two months and the market potential of generative AI (GenAI) projected to reach billions of dollars in the next year.

But then what is Artificial Intelligence? 

Artificial intelligence is technology that enables computers and machines to simulate human intelligence like reasoning and problem-solving. From the development of self-driving cars and voice assistants to curated algorithmic social media feeds, AI is increasingly becoming part of everyday life.

With digitalization accelerating across various domains, the volume of data available for analysis is expanding rapidly. 

Insurance, being a data-driven industry, has long utilized AI and data analytics to enhance products, interactions, risk management, claims processing and overall operational efficiency. 


Let’s explore this in the next section.

Benefits of artificial intelligence

 1. Redefining underwriting practices

Gone are the days of manual risk assessment processes. Advanced analytics, now powered by Artificial Intelligence, enables insurers to analyze vast amounts of data with unprecedented accuracy. 

By gathering real-time data with the help of telematics complemented with advanced analytics, insurers can determine the likelihood of claims more precisely than ever before. 

Additionally, machine learning algorithms automate the underwriting process, swiftly identifying high-risk factors and enabling insurers to offer personalized policies tailored to individual needs.

 2. Elevating customer service standards

Insurance customers expect round-the-clock support and instant responses to their inquiries. AI-powered chatbots with Natural Language Processing (NLP) capabilities can handle routine customer queries like questions about policy coverage, claims status and premium payments. 

This frees up human agents to tackle more complex issues and address customer grievances promptly.

 3. Streamlining claims processing

AI algorithms are revolutionizing the claims processing workflow by automating manual tasks and expediting the settlement process. By extracting relevant information from claim forms, documents and images, AI technologies like OCR backed with Deep Learning reduce the need for human intervention and accelerate claims resolution. 

Moreover, predictive analytics play a crucial role in fraud detection by analyzing patterns and anomalies in claim data, enabling insurers to identify suspicious behavior and take proactive measures to mitigate risk.

 4. Enhancing policy administration efficiency

AI-powered automation tools are streamlining policy issuance, renewal and modification processes, reducing the administrative burden on insurers. By generating documents, recording transactions, and initiating premium payments automatically, these innovative solutions enhance operational efficiency and improve overall workflow management. 

Artificial intelligence like Natural Language Processing (NLP) used in hand with smart contracts, can help automate certain tasks like issuing a policy once a set condition has been met like payment of premium.

5. Ensuring regulatory compliance

Artificial Intelligence plays a crucial role in ensuring that insurance products and processes adhere to legal and regulatory standards. 

By analyzing regulatory requirements and compliance documents, AI technologies enable insurers to identify potential risks and discrepancies proactively, minimizing compliance-related challenges and ensuring adherence to industry regulations. 

Similarly, AI can be applied in tandem with blockchain to automate report generation once certain conditions have been met like the end of a quarter or annual duration.

Final thoughts

Artificial intelligence is reshaping the insurance industry, driving innovation and efficiency across various operations. 

By harnessing machine learning, natural language processing, and robotic process automation, insurers and risk intermediaries are enhancing accuracy, speed, and customer experience.

Looking ahead, the convergence of AI with technologies like blockchain promises even greater opportunities for innovation. Embracing AI-driven solutions will enable insurers to stay ahead of the curve and meet the evolving needs of customers in the digital age.

With cloud-seeding now a reality, insurance should harness technology to address the challenges posed by climate change.

Just a few weeks ago, Dubai experienced severe flooding due to heavy rains—the heaviest since the 1940s.

This raises two questions: First, what factors should insurers consider when determining coverage for damages from climate change? And second, how can insurers effectively manage risks associated with cloud seeding-related claims?

To address these questions, Insurtech solutions offer a promising avenue to not only streamline insurance operations but also enhance risk management practices.

Climate risk and insurance

Climate change isn’t just a distant threat anymore—it’s happening right now, all around us. 

Today, we’re experiencing more frequent and severe weather events than ever before, and UAE serves as a testament to this reality. The recent floods turned main country roads, particularly in Dubai, into waterways, leaving motorists stranded and causing widespread damage to commercial and residential properties.

Traditional insurance methods are feeling the strain. While policies like motor and homeowners’ insurance typically cover events like earthquakes and floods, they become strained when many policyholders are faced with the peril at the same time. Asides that, insurers may refuse coverage for events deemed man-made like cloud seeding. 

Whether the Dubai floods were man-made or not, that’s a discussion for another day.

Insurtech’s response to climate change

Predicting and accurately assessing the risks posed by climate change has proven difficult with traditional underwriting methods. Add to that, engaging other disciplines like meteorology and seismology for risk assessment and claim investigation adds to the complexity and cost.

Fortunately, Insurtech—the integration of technological innovations into the insurance industry—is changing the game. Insuring against climate-related risks is now easier and more cost-effective than ever before, thanks to Insurtech’s ability to bring savings and efficiency to the insurance model.

Insurtech trends and success stories

Advanced analytics and predictive modeling

Insurtech companies employ sophisticated data analytics algorithms for more accurate assessment of climate-related risks. Through analysis of historical weather data, satellite imagery, and other relevant information, these solutions predict the likelihood and severity of extreme weather events.

 Twinn, a software platform developed by Royal HaskoningDHV can provide a climate risk assessment that helps you visualize physical risks and identify hazards as they develop. 


Drones equipped with high-resolution cameras and sensors revolutionize risk assessment and claims processing in the insurance industry. 

Insurtech firms deploy drones to conduct aerial surveys of properties, infrastructure and disaster-stricken areas, enabling faster and more accurate assessment of climate-related damages. Customers will then benefit from faster claims processing and eventual settlements.


Blockchain technology provides a transparent and tamper-proof platform for managing insurance contracts, especially those tied to climate-related risks. 

Insurtech startups like Arbol explore the use of blockchain-based smart contracts to automate the execution of parametric insurance policies triggered by specific weather events or environmental indicators. 

This ensures timely payouts to policyholders in climate-related disasters, reducing administrative overhead and enhancing trust and transparency in insurance transactions.


Microinsurance, providing affordable coverage to low-income and underserved populations, is increasingly employed to tackle climate-related risks in developing countries. 

Lemonade has collaborated with local organizations and mobile technology providers in Kenya to deliver microinsurance products safeguarding vulnerable communities against weather-related disasters like droughts and famine.


As climate risks escalate, Insurtech emerges as a beacon of hope. By leveraging technology like smart contracts climate coverage can be automated in a way that when conditions have been met i.e. heavy rains being recorded then insurance settlements will be paid out automatically to all policyholders. 

This, alongside other discussed examples, demonstrates how Insurtech innovations can practically enhance and improve insurance operations. Insurers can navigate uncertainties, address coverage dilemmas, and effectively manage risks—ultimately safeguarding communities in an ever-changing climate.


Cloud computing is a game-changer in redefining business operations and consumer interactions as the insurance industry undergoes considerable transition due to digitalization and client demands.

This article examines cloud computing’s potential in the insurance industry, going over its innovations, drawbacks, and possible advantages for both policyholders and insurers.

Innovations fueled by cloud technology

Numerous advantages of cloud computing are drastically changing the insurance industry. The following are a few of the biggest innovations:

Improved agility & scalability

Because of the adaptability of cloud infrastructure, insurers can modify IT resources in response to urgent demands, which saves money and improves their capacity to manage spikes in activity.

Simplified processes

Insurance procedures are streamlined by cloud-based solutions, which lower operating costs and frees up staff for higher-value jobs including underwriting, processing claims, managing policies, and providing customer support.

Better analytics & data management

Large volumes of data may be securely and centrally stored via cloud storage, which gives insurers the ability to create customized products, spot fraud trends, assess risk profiles, and launch focused marketing efforts.

Customer experience without barriers

Because cloud technology makes it easier to access policies, file claims, and handle payments, it may be used to create easy-to-use online portals and mobile apps that increase customer satisfaction and loyalty.

Working together & inventing

Cloud platforms provide open, creative environments for the rapid testing and implementation of new ideas, enhancing collaboration both within insurance businesses and with external partners.

Uncovering possibilities for a more positive future

The short-term difficulties are outweighed by the long-term advantages. By adopting cloud computing, insurance companies can take advantage of numerous advantages:

Tailored insurance items

Using consumer data and analytics, insurers can develop customized insurance products that support usage-based insurance models, in which premiums are determined by real risk exposure or behavior.

Instantaneous risk evaluation

Through the analysis of immediate information from connected gadgets and sensors, cloud-based solutions allow insurers to continuously assess risk, improving their capacity to provide accurate rates and even offer discounts for responsible conduct.

Quicker processing of claims

Cloud-based claims management solutions facilitate shorter resolution times and higher levels of customer satisfaction by automating repetitive operations and encouraging cooperation between adjusters and policyholders.

Improved fraud identification

Algorithms powered by artificial intelligence and machine learning can swiftly spot patterns of fraudulent claims, lowering insurer losses and helping policyholders with cheaper premiums.

Integration of emerging technologies

Cloud computing enhances risk evaluation, claims processing, and client service by integrating blockchain and IoT technology into insurance products.

The impact

Cloud computing is being embraced by the insurance sector to foster creativity, effectiveness, and customer-centricity. Driven by agility, data-driven knowledge, and value generation, this offers policyholders a secure, adaptable experience as well as a competitive advantage.