Advisory consulting

RESEARCH REPORT

The State of AI in
P&C Insurance
A VIEW ACROSS THE ECOSYSTEM: RETAIL, MGA, AND CARRIER

Published: November 2024

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Authors

Mark Breading Meredith Barnes-Cook

Senior Partner Partner

Mark is well known for his perspectives on the Meredith is an award-winning insurance
future of the insurance industry and innovative transformation strategist with almost four decades
uses of technology in insurance. His specialty of industry operations and technology experience
areas include insurtech, transformational spanning all lines of business and the entire
technologies, innovation, and distribution insurance value chain. She has led numerous
strategies. Previously, he was partner and chief digital, product, and organizational carrier
research officer at Strategy Meets Action, a leading transformations, along with the insurance go-to-
strategic advisory firm, and has consistently been market strategy at an AI customer experience
ranked as one of the “Top 50 Global Influencers in SaaS startup.
InsurTech” by InsurTech News.
[email protected]
[email protected]

Heather Turner
Program Manager

Heather supports ReSource Pro’s advisory and

consulting engagements through rich written
content, quantitative and qualitative primary
research, and market and technology trend
analysis. Prior to joining ReSource Pro, she was a
managing editor at ALM Media.

[email protected]

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ReSource Pro Insights offers a broad range of research

and observations on the insurance industry. We provide
substantial studies, analysis and perspectives on
business and technology strategies and plans across the
P&C ecosystem, covering retail agencies and brokers,
MGA/wholesalers, carriers, and tech vendors. Our
coverage includes distribution, underwriting, policy
servicing, billing/payments, and claims business areas,
as well as cross-enterprise areas such as strategic
initiatives, digital transformation, innovation, customer
experience, and talent.

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Table of contents
05 About this report: AI 101

06 State of AI across the P&C insurance industry

09 Retail agencies
The potential implications of AI

11 MGAs
The potential implications of AI

13 Carriers
The potential implications of AI

15 Building the foundation for digital readiness

17 What does the future hold?

Conclusion

19 About ReSource Pro

Use of our reports

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About this report: AI 101

This report is based on extensive research encompassing industry surveys, executive interviews,
and client engagements with retail agencies, MGAs/wholesalers, and carriers, as well as with tech
companies serving the industry. We have a series of AI reports available; however, this report is
meant to provide a big-picture view of the implications of AI for the industry as a whole – both today
and in the future.
Before we proceed further, let’s first align on what constitutes artificial intelligence. AI is a technology that enables
computers and machines to think “intelligently” and act like humans. There is “classic AI” and “deep AI.” Classic AI is based
on human expertise, with programmed responses established by human knowledge. Deep AI solutions, however, learn
on their own. With data inputs and guiding parameters, the system learns, identifies patterns, and formulates a response.
Figure 1 below outlines examples of both classic and deep AI solutions.

Figure 1. Scope of AI Technologies

CLASSIC AI DEEP AI

BASED ON HUMAN EXPERTISE LEARNS ON ITS OWN

Inputs are human knowledge and expertise Inputs are data and guiding parameters
Responses are programmed System learns, identifies patterns, forms responses

Expert CBR Rules Data Programmed Text Robo RPA Artificial ML NLP Generative
Systems Engine Mining Chatbots Mining Advisors NN Chatbot AI

Process Image/
Mining Vision
Speech
Recognition

Conversational
AI

You’ll note that we have taken a broad view of what constitutes AI, as many solutions include multiple underlying
technologies, making it difficult to assess the degree to which a solution is AI-enabled. We believe it is important for some
individuals at your company to understand the specific technologies, but ultimately, most AI will be embedded in solutions
provided by vendors. We have a full series of reports available that dive deeper into specific industry segments or topics,
including generative AI and AI governance. Please contact the authors to learn more.

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State of AI across the P&C insurance

industry
Generative AI, machine learning, automation, AI models – we’ve all
heard the buzz about how AI will transform the future of insurance. “Everyone is talking
But beyond the headlines and industry chatter, many in the about what we should
property and casualty (P&C) insurance space are grappling with do about AI, but we as
a more fundamental question: How is AI actually being deployed an industry have been
within retail agencies, MGAs, and insurance carriers, and to what using AI for 15 years.
degree is it driving meaningful change? It is just that GenAI
For starters, it’s important to remember that AI isn’t new. The insurance industry brings new capabilities
has been using AI for years in areas such as underwriting, claims processing, fraud and awareness of the
detection, document processing, and more. What is new, however, is the scope and potential.”
availability of solutions. The launch of publicly available generative AI tools such as
ChatGPT made it seem as though AI was everywhere and all at once. But this isn’t the – Carrier Chief Actuary
whole story, especially not within the insurance industry.
At ReSource Pro, we have closely monitored how AI is impacting the P&C industry. Through surveys, executive interviews,
and everyday conversations with small and large companies, we’ve gained valuable insights into current AI use cases
and the opportunities and challenges AI brings.1 As it stands today, the complexity and often fragmented nature of the
insurance industry is preventing it from moving full steam ahead. That said, notable advancements are being made. In
Figure 2 below, we assess AI adoption across P&C, looking at current activity (investments, pilots, and implementations)
and executives’ reported interest by function.

Figure 2. Current State of AI in P&C Insurance

Sales/ Product/ Account/

Distribution Program Pricing/ Policy Loss
& Marketing Development Actuarial Underwriting Servicing Claims Control Operations*
Retail
Agency

MGA

Carrier

High Maturity Mid Maturity Low Maturity Not Applicable

1 In addition, ReSource Pro has been leveraging AI in our own capabilities to improve our service delivery to our customers.
*Operations include key agency functions such as accounting, document processing, business intelligence, and compliance.

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The majority of companies are in the early stages of AI exploration, with low adoption across most functions. However,
there are exceptions. Carriers have been using machine learning models for underwriting, pricing, claims severity, and
reserving predictions for at least the past two decades. In subsequent years, this usage has expanded to include computer
vision for aerial imagery. Furthermore, executives indicate they will continue investing in these areas, with claims having
a heightened priority in the near term.
In the retail agency sector, the most progress has been made in agency marketing, sales, and servicing functions like policy
checking. These are also the processes agency executives are prioritizing in the near term. Lastly, MGAs are focusing on
underwriting and pricing as top priorities now and for the future.
Broadly speaking, the industry’s approach to AI is diverging. While most companies are learning about and exploring
potential AI use cases, many are choosing to pause AI initiatives to focus on other current strategic priorities, especially
building out the digital foundation. Conversely, larger companies with the necessary infrastructure and resources are
actively piloting and implementing AI solutions. Alongside our overview of the current state of AI adoption, we’ve identified
the following key themes shaping AI today and setting the stage for future advancements:

Solving business challenges is the top priority

• While most insurance stakeholders are educating themselves on AI and its potential implications, they are still
learning how and where AI should play a key role in solving pressing business challenges. Their approach
emphasizes agility by incrementally solving, testing, and learning while avoiding large-scale, enterprise-wide
designs before implementing any changes. Like other technologies, AI is viewed as a tool, not the end goal. As
such, the P&C insurance industry is being pragmatic in its approach to AI, ensuring available solutions support its
strategic initiatives and deliver valuable results sooner rather than later.

The distinction between automation and AI is becoming blurred

• Automation and AI are often discussed together, but they are notably different. The industry has been working to
automate repetitive, low-level tasks for years. AI, however, is taking automation to the next level by making it more
intelligent and adaptable. This results in smarter automation solutions that can learn, adjust, and improve over time.
That said, as highlighted above, the underlying technology of a solution is less important than the results it delivers.

Roles and responsibilities will evolve

• As AI becomes more integrated into insurance operations, roles and responsibilities will undoubtedly be reshaped.
Automating manual, repetitive tasks and bringing greater efficiency to time-consuming procedures such as policy
checking and contract review will enable employees to prioritize services that deliver greater customer value. This
shift will also require employers to invest in training and development to ensure employees can effectively leverage
AI tools and grow their expertise in these high-value areas.

Human expertise is and will remain vitally important

• In some cases, AI enables end-to-end automation, but most AI solutions augment how we work rather than
replace the need for human expertise. The insurance industry’s high complexity and relationship-driven nature all
but guarantee that deep industry knowledge and human oversight will continue to be needed. Employees drive
customer acquisition, retention, and the overarching customer experience. AI will not replace this.

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Customers will rely on industry partners to navigate AI-driven risks

• While our focus has been on AI’s impact on insurance operations and employees, it’s crucial to understand how
AI will affect our customers and the risks they face. AI is transforming industries and lifestyles and introducing
new exposures that policyholders may not fully understand. As these risks evolve, customers will rely on their
agents and carriers to advise them on how to best protect themselves via insurance coverage and proactive risk
management strategies.

AI governance is front and center

• With the broad availability and easy access to AI-based tools and solutions, senior leaders are focusing on how
to prioritize investments and manage AI use within their enterprise. Considerations such as ethical and fair use,
regulatory compliance, and model management are critical.

Lastly, successful AI adoption relies on a strong foundation of digital readiness within your organization. The remainder of
the report will take a closer look at the real-world use cases and potential implications of AI across different segments of
the P&C industry, including retail agencies, MGAs, and insurance carriers. We will then explore the critical importance of
digital readiness, including practical steps you can take today. Finally, the report looks ahead to 2030, exploring how the
industry will evolve over the next five years.

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Retail agencies
In the ever-evolving landscape of retail agencies, the impact and potential of AI is becoming
increasingly evident. From agency marketing and sales to account servicing and agency operations,
AI-enabled tech solutions stand to revolutionize the way insurance agencies and brokerages
operate. Executives who embrace AI stand to make significant gains in efficiency, productivity,
decision-making, and more – those who don’t risk being left behind. To be clear, AI will not replace
the insurance agent but rather reshape how agencies operate and deliver value to their customers.
Below, we explore four essential agency functions: agency marketing, sales, account servicing, and
agency operations, as well as the respective AI use cases that are beginning to transform them.

Agency Marketing
With approximately 40,000 insurance agencies and brokerages nationwide, demand generation and lead generation are top
priorities for agency marketing teams. These initiatives require clear strategies focused on increasing brand awareness and
identifying/qualifying potential leads. AI-enabled tech solutions are poised to transform demand generation via customer
segmentation, predictive analytics, tailored content, and more. Within lead generation, AI allows agents and brokers to capitalize
on internal and third-party data sources to identify, evaluate, and prioritize new leads and upsell/cross-selling opportunities.

Sales
It’s important to remember that retail agencies are, first and foremost, sales organizations. To succeed, they must generate
new business and retain existing clients. Historically, the sales process has been long, complex, and fraught with many
challenges, often due to its manual processes. However, AI solutions are beginning to automate and streamline sales
workflows with use cases spanning customer data capture, coverage needs analysis, data pre-fill, and quote comparisons.
In turn, agents and brokers can better obtain underwriting information, classify risks, assess coverage needs, compare
competing quotes, and ultimately land more business.

Account Servicing
Once an agency writes a new account, the work has just begun. Customer service reps (CSRs) and account managers devote
significant time to the day-to-day servicing of accounts. Tasks include contract review, issuing certificates of insurance,
fielding coverage inquiries, processing policy changes, and assisting with claims. In each area, AI solutions help automate
and streamline these processes. For example, generative and conversational AI tools can handle routine policy inquiries
and requests, expediting agency response time. Other solutions can compare contractual insurance requirements to the
insured’s policies to identify potential coverage deficiencies. Similarly, GenAI solutions help automate policy checking,
providing an initial review before having the CSR or AM assess identified discrepancies.

Agency Operations
The scope of agency operations is vast and often prone to manual processes and errors. However, AI solutions for document
processing, accounting, compliance, business intelligence, and data integrity/cleansing are helping streamline these critical
functions. For example, intelligent document processing (IDP) solutions can identify, classify, and route incoming documents,
while data pre-fill solutions can extract necessary information and automatically populate applicable platforms. Within
accounting, revenue automation and commission reconciliation tools are streamlining key workflows and reducing errors.
Lastly, business intelligence tools are providing agency leaders with sales and retention analytics that enable them to more
accurately predict future sales, prioritize new business opportunities, and identify churn risks.

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Additional details and specific use cases on AI at retail agencies can be found in the research reports:
“The AI Advantage: Unlocking New Opportunities for Retail Agencies in Marketing and Sales”
“The AI Advantage: Unlocking New Opportunities for Retail Agencies in Servicing and Operations”

The potential implications of AI

While the scope of potential use cases is extensive, the majority of retail agencies are in the early stages of AI adoption,
with mid-size and large agencies leading the way. These early adopters will help shape AI’s direction as access expands
in the coming years, most notably through partnerships and integrations. As AI finds its foothold within retail agencies,
ReSource Pro anticipates the impact will be significant, most notably in the areas outlined in Figure 3 below.

Figure 3. How AI Will Impact Retail Agencies Over the Next Five Years

Enhance agent/ • AI-powered virtual assistants and co-pilots that support service staff
broker expertise • Customer experience is enriched via real-time data insights, prompts, and coaching

Personalized • Actionable insights into customer behavior, communication preferences, risk profiles, etc.
customer experience • Tailored messaging, product offerings, and services based on customer needs/preferences

• “Smart” (AI-powered) automation solutions learn over time; thus, becoming more
accurate and efficient
Increase in ‘smart’
automation • Extend automation capabilities beyond “rule based” processes and into more complex tasks
• Enable employees to focus on value-added services rather than transactional work

Ability to launch new • Leverage robust data and analytics to identify potential market opportunities
business models • Increase revenue by offering new value-added services

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MGAs
Managing General Agents (MGAs) have long been at the forefront of insurance innovation, developing
specialized products to address emerging risks and serving as niche experts for their carrier and agency
partners. However, their use of technology varies widely. A small percentage of MGAs (especially
insurtech MGAs) leverage advanced tech stacks, using their technological capabilities as a point of
differentiation. Others operate more leanly, relying on manual processes, spreadsheets, or in-house
systems for underwriting and quoting risks. While many MGAs have sophisticated data and analytics
capabilities, whether manual or tech-enabled, most have not yet adopted AI. The majority are working
toward greater digital readiness and prioritizing current strategic initiatives.

Regardless of an MGA’s current state of digital readiness, AI has the potential to be transformative. It
stands poised to automate time-consuming tasks, enhance decision-making, and develop more data-
driven products that meet the evolving needs of MGAs’ partners. The most significant impact is likely
to be seen in the following areas: product development, underwriting, and pricing, each of which are
explored in greater detail below.

Product Development
The demand for new and innovative insurance programs is on the rise, fueled by emerging risk exposures, rising premiums,
and existing coverage gaps. And speed-to-market is often critical to remain competitive and capitalize on emerging market
opportunities. AI can significantly enhance and expedite product development. Through the use of machine learning, MGAs
can analyze vast amounts of data to identify and assess market opportunities and pinpoint areas where new products
can bring value. For example, an MGA might use AI to analyze environmental, weather, and claims data to explore new
solutions for climate-related risks.
In addition to identifying and analyzing market opportunities, AI can be instrumental in developing and testing new
products. Before launching, MGAs first need to determine the applicable coverages, policy terms and conditions, and
pricing. The new product then needs to be tested, considering factors such as potential claims costs, market demand, loss
ratios, and profitability. Machine learning models can analyze and test countless different variables that more traditional
models may miss, allowing MGAs to create and refine their products more quickly and accurately.

Underwriting and Pricing

Once an insurance product has launched, MGAs face the challenge of accurately underwriting and pricing each new risk
to maintain profitability. AI significantly enhances risk assessment through data verification, enrichment, and analytics
capabilities. Underwriters can quickly and reliably confirm the accuracy of submission info and integrate third-party data
sources to build a comprehensive risk profile. These insights enable underwriters to make better-informed decisions on
individual risks and adjust rates dynamically, thereby ensuring the product remains competitive and financially sound.
Furthermore, AI-driven predictive modeling can enhance pricing accuracy by assessing historical and emerging risk
patterns, helping MGAs adjust their pricing strategy as new data becomes available. By leveraging AI capabilities, MGAs
can optimize risk selection and reduce the time and resources needed to underwrite submissions while maintaining high
accuracy levels.

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The potential implications of AI

With AI driving advancements in product development, underwriting, and pricing, MGAs are set to achieve greater
innovation and efficiency over the next five years. As illustrated in Figure 4, AI’s impact on MGAs is significant: more
tailored insurance solutions, smarter underwriting, and optimized operations. These gains will enable them to respond
faster to market shifts, introduce cutting-edge products, and enhance the customer experience.

Figure 4. How AI Will Impact MGAs Over the Next Five Years

• Quickly develop new insurance products for emerging, micro, and underserved risks
More tailored
• Leverage customer insights to adjust coverage and respond to changing risks in real-time
insurance solutions
• More accurate personalized pricing based on a customer’s true risk profile

Smarter • Automatically supplement submission data with external sources

underwriting and
• Increase underwriting accuracy and pricing adequacy via machine learning models
risk assessment

• Automatically review and prioritize submissions based on pre-defined criteria such as appetite
Optimized and alignment, winnability, and estimated profitability
agile operations • Optimize workflows and submission assignments based on underwriter expertise, availability,
and capacity

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Carriers
Carriers are leading the pack in developing AI strategies, conducting pilots, and implementing
AI solutions. Of the carriers that participated in ReSource Pro’s AI in P&C Insurance in 2023 and
Beyond survey, almost half are actively piloting and/or implementing use cases. These use cases
span distribution, underwriting, pricing, inspections, loss control, claims, policy servicing, and
more. This section will focus on the areas where we see the most development and application
of AI-enabled solutions: distribution and submissions, underwriting and pricing, and claims
management.

Distribution and Submissions

AI-powered solutions can automate critical components of the submission process, including acknowledgment or declination,
data extraction, triaging, and assignment. Furthermore, intelligent triage and prioritization capabilities will enable carriers to
move away from a “first-in, first-out” approach and instead prioritize submissions based on appetite compatibility, winnability,
and projected profitability. AI can also extract and enrich critical data from submissions, providing immediate insights and
recommendations (for example, automatically identifying class codes). These improvements will significantly impact distribution,
enabling faster turnaround times, reducing back and forth with agents/brokers, and improving the overall customer experience.

Underwriting and Pricing

As one of the industry’s first AI use cases, applications for underwriting and pricing are vast. Today, AI-powered data
enrichment and verification solutions help streamline the underwriting process, allowing carriers to quickly validate
and supplement key information. Additionally, solutions can enhance exposure analysis and risk scoring by analyzing
complex datasets, identifying patterns, and predicting future risk trends. Furthermore, AI supports remote inspection
tools, providing additional insights and data points to underwriters. Overall, these solutions can expedite the underwriting
process while allowing carriers to better assess and price each risk. The combination of more precision and speed can
enable underwriters to generate quotes more quickly, improving both submit-to-quote and quote-to-bind ratios.

Claims Management
AI is poised to make significant strides in claims management by improving efficiency, accuracy, and compliance
throughout the claim lifecycle. For starters, AI can optimize triage and assignment, efficiently routing claims based on
complexity, jurisdiction, and risk level, accelerating processing times, avoiding case management and investigation
delays, and enhancing the customer experience. Additionally, AI solutions can streamline claims notifications, such as
denial and reservation of rights letters, ensuring timely delivery and helping carriers adhere to compliance requirements.
Other potential use cases include improved initial and continuous predictive reserving, claim handling recommendations,
identifying claims likely to go to litigation, subrogation opportunities, and detecting fraud. This includes tapping into AI’s
ability to analyze unstructured data, including medical reports and litigation documents. AI’s vast potential within claims
will likely drive impactful improvements that will reduce claims costs and enhance the claims handling experience.

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The potential implications of AI

As carriers embrace AI-driven tools, they can anticipate improvements in efficiency, productivity, decisioning, and
innovation throughout the insurance value chain. However, over the next five years, the most transformation will likely
be seen in areas where AI is reshaping processes and driving better outcomes. Figure 5 highlights these key areas,
pinpointing how AI will accelerate submission processing, enhance underwriting precision, fuel product innovation, and
drive greater claims automation.

Figure 5. How AI Will Impact Carriers Over the Next Five Years

• Identify untapped market opportunities

Greater product
• Quickly develop, test, and launch new insurance products
innovation
• Offer products covering customers’ AI exposures

• Evaluate submission quality and assess the opportunity in real-time

Expedited submission
• Automatically extract and enrich key data from submission documents
processing
• Provide immediate feedback to agents or brokers about missing or incorrect info

Increase precision • Comprehensive and personalized risk assessment

underwriting and • Automate underwriting of low-complexity risks
dynamic pricing • Adjust pricing in real-time based on customers’ unique risk profiles

• Expedite claims triage by automatically classifying and prioritizing claims based on    type,
Automated (even complexity, and severity
autonomous) claims • Fully automate low complexity claims from FNOL to settlement
handling • Provide 24/7 claims filing and support via AI Assistants

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Building a foundation for digital readiness

In a competitive industry like insurance, speed-to-market is often crucial. However, companies must
prioritize digital readiness as they explore, plan, and implement high-value AI use cases. Without
a solid digital foundation, they risk limiting the full potential of AI initiatives. That is not to say that
you should hold off on your AI exploration – there are use cases today that deliver immediate value.
But the key to unlocking AI’s full potential lies in addressing the foundational capabilities to drive
implementation.

To set your organization up for success, start by evaluating your technology infrastructure, data
quality, and internal processes to ensure they can support AI capabilities. Additionally, consider the
following recommendations:

Create a data-centric culture

Building a data-centric culture is essential for any organization looking to leverage AI and data analytics solutions
effectively. The foundation of this culture is accurate, reliable, timely, and secure data. Poor data quality can render even
the most sophisticated AI tools useless, leading to flawed insights, misguided decisions, and unintended bias. Education
must also be integral to a data-centric culture. From the top down, every employee must clearly understand how the
organization handles and protects company and customer data, ensures its quality, and why these practices are critical.

Formalize a data governance strategy

Developing a comprehensive data governance strategy and program is foundational to successfully implementing AI
strategies and initiatives. Key components include defining ethical and responsible use, ensuring legal and regulatory
compliance, implementing operational controls and oversights, and fostering data literacy.

Update legacy systems

Outdated legacy systems often lack the flexibility and integration capabilities required to support advanced AI technologies.
Without modern infrastructure, AI solutions can become ineffective, as they rely on clean, real-time data to generate insights
and drive decision-making. Legacy systems, with their fragmented data and rigid processes, can hinder this, leading to
inefficiencies, inaccurate models, and higher implementation costs. Modernizing these systems not only enhances the
performance of AI but also ensures scalability, agility, and better customer experiences.

Improve and optimize your processes

Optimizing processes means going beyond automating existing workflows; it involves critically assessing and re-
engineering them as needed. Rather than assuming your current processes are adequate, consider whether they are
efficient, if they add value, and if they can be streamlined or replaced altogether. For each process, determine the ideal
approach. Should it be automated? Handled by human experts? Delegated to external partners? Or a combination of all
three? By thoroughly examining and optimizing your current processes, you’ll be in a better position to assess where AI
can bring value to your organization.

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Train and develop your employees

In today’s rapidly evolving business and technological landscape, it’s imperative that you invest in employee training and
development. Your employee development strategy should be multi-faceted, addressing both current and future skills gaps
in areas such as data literacy, data analytics, technology, customer experience, leadership, and more. Employees are your
greatest asset – investing in their development not only ensures their success but also strengthens your organization’s
long-term competitiveness.

Establish scalable AI governance

It is never too early for organizations to create the foundation of an AI governance program. Areas warranting clear
ownership include regulatory compliance and determining if a centralized, decentralized, or federated model is the best
fit. Establishing an AI steering committee can drive out those operational decisions while providing interim strategic
oversight of AI implementation plans, vendor selections, and subsequent transformation, ensuring that changes align with
business goals and address operational needs. However, the steering committee should not be a mainstay and only be in
place to set initial standards and guidelines – the goal would be to engrain AI strategies as part of your yearly business
planning, supported by the selected governance model.

Embrace sustainable change management

Lastly, ensure you have a company culture that values innovation and transparency and puts corresponding practices in place.
Executives must be intentional about their change management strategies, including defining their objectives and success
metrics, ensuring alignment amongst all organizational leaders, having a communication plan in place, and offering training
and support to employees. AI stands to revolutionize the way we work and will certainly be met with resistance along the way.
Having a strategy for managing and implementing such changes will position you for greater success.

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What does the future hold?

Although the P&C insurance industry is still in the early stages of AI adoption, the “As an [insurance
rapid pace of technological advancement demands that industry stakeholders move organization], if you
beyond maintaining the status quo. To stay competitive, retail agencies, MGAs, and don’t embrace AI, you
carriers must proactively embrace innovation and plan for how AI will reshape their will become irrelevant.”
operations. It is also important to understand how AI will change their customers and
their risks. This section provides a forward-looking view of 2030, including a heat map – Director of
illustrating anticipated areas of highest AI adoption across each segment. Additionally, Operations at National
we outline five predictions for how AI will redefine key functions and set new standards Retail Agency
for efficiency, personalization, and risk management across the industry.

Figure 6. 2030 Outlook for AI in P&C Insurance

Sales/ Product/ Account/

Distribution Program Pricing/ Policy Loss
& Marketing Development Actuarial Underwriting Servicing Claims Control Operations
Retail
Agency

MGA

Carrier

High Maturity Mid Maturity Low Maturity Not Applicable

Over the next five years, ReSource Pro anticipates a significant increase in AI adoption across all segments of the P&C insurance
industry. Currently, AI adoption remains relatively low (see Figure 2), but the next few years are poised to bring transformative
change. Retail agencies are expected to prioritize AI investments in marketing, sales, and client servicing functions, enhancing
their ability to personalize interactions and strengthen customer relationships. For MGAs, the focus will likely be on underwriting
and program development, where AI can help tailor solutions and assess risks more precisely. Carriers, meanwhile, are projected
to adopt AI broadly across the value chain, with underwriting and claims management expected to see the largest investments.
Across all three segments, AI will streamline operations and free up teams to focus on high-value, complex tasks that require
human insight and expertise. With this increase in AI adoption, the industry can also expect the following:

Dynamic insurance solutions

The future of insurance will continue to shift away from a one-size-fits-all approach to insurance coverage and toward dynamic,
highly personalized solutions. With the integration of AI and data analytics, the industry will be able to tailor coverage limits,
policy terms, and pricing based on real-time data and individual customer behaviors, offering more flexible and responsive
solutions. These insights will also redefine how we cover difficult exposures such as hurricanes, floods, and wildfires.

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Hyper-personalization of the customer experience

AI will empower carriers, MGAs, and retail agencies to create personalized customer journeys tailored to individual needs and
preferences. AI will increase staff capacity to focus on higher-value services by automating routine tasks like payments and
basic policy changes. This will lead to faster and more efficient service for simple requests while still providing personalized
guidance for complex issues such as claims management and intricate coverage questions. This combined approach will
enhance operational efficiency and improve the overall customer experience.

Intersection of AI and other key technologies

The future of the P&C insurance industry will be shaped by the intersection of AI and other key technologies such as the
Internet of Things (IoT), embedded insurance, and blockchain. IoT devices such as telematics in vehicles, smart home
systems, and wearables will provide carriers with real-time data that AI solutions can use to analyze risks, offer dynamic
pricing, personalize coverage offerings, and enhance claims processing. Embedded insurance (insurance purchased in
conjunction with a related non-insurance product or service during the same customer experience, i.e., trip cancellation
coverage) will be powered by AI to offer on-demand, personalized coverage. Lastly, blockchain will enhance the security
and transparency of key transactions, allowing AI to automate functions such as claims processing and fraud detection
reliably. These technologies will notably impact efficiency, personalization, and security in insurance offerings.

More robust risk management

AI has the power to fundamentally transform risk management, empowering carriers, MGAs, and retail agencies to better
support policyholders in preventing and mitigating losses. For example, predictive analytics solutions and IoT technologies
can prompt preemptive actions. Sensors in buildings or vehicles can detect early warning signs of issues like water
leaks and identify risky customer behavior such as speeding. These insights enable stakeholders to take preventative
measures before a loss occurs. Additionally, AI can help mitigate risks by automating incident response, facilitating quicker
responses, and advising customers in real-time on steps they can take to reduce a loss.

Private LLMs (large language models) are the future

You’re likely most familiar with public LLMs such as ChatGPT and Google Gemini; however, some companies are choosing
to develop private LLMs. These models are built, trained, and deployed using a company’s internal infrastructure and
proprietary data, allowing for greater data security and niche/industry-specific capabilities. Examples include Marsh’s
LenAI and Lemonade’s AI Jim.

Conclusion
AI’s transformative impact will extend across the entire P&C insurance value chain, reshaping operations, insights,
decision-making, and customer interactions. By improving automation and augmenting decision-making with
advanced insights, AI will undoubtedly redefine and elevate the role of insurance professionals. Additionally,
new risks will emerge, prompting innovative coverages and product lines, while entire industries will transform,
spawning new companies and industry verticals. For insurance leaders, the time to act is now. Sitting on the
sidelines is not an option; those who fail to prioritize AI risk falling behind in a rapidly changing landscape. Taking
proactive steps to adopt and integrate AI will be essential to staying competitive and helping customers manage
tomorrow’s risks.

RESOURCE PRO RESEARCH REPORT 18

ABOUT RESOURCE PRO
Focused exclusively on the insurance industry, ReSource Pro is a trusted strategic operations
partner to insurance organizations seeking to increase their productivity and profitability.
With a global team of more than 10,000 employees, ReSource Pro operates at the critical
intersection of people, process, technology, and data to serve more than 1,800 clients across
the carrier, broker, and MGA segments – consistently earning a +96% client retention rate
for over a decade. It offers expert advisory services, proven business process management
optimization and transformative data and technology solutions. It was recognized in 2024 by
Inc. 5000 as one of the fastest growing companies in the US.

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