From the left: Kobi Bendelak, Insurtech Israel CEO and Dr. Yael Benvenisti, Insurtech Israel, Deputy CEO
The global insurance industry is undergoing one of the most significant transformations in its history. Once known for legacy systems, complex onboarding processes, and slow product cycles, today’s insurers are accelerating toward a fully digital, data-driven future. At the centre of this evolution stands AI which is rapidly moving from experimentation to a core strategic capability for insurers worldwide.
From Automation to Intelligence: The New Foundations of Insurance
AI is no longer limited to chatbots or back-office automation. Insurers are now embedding AI into the entire insurance value chain — underwriting, pricing, distribution, claims, fraud detection, and customer service. The shift marks a move from reactive processes to predictive and preventive models.
Machine learning enables earlier risk detection; predictive analytics personalize coverage and pricing; and AI-driven decisioning improves accuracy and reduces manual workload. Generative AI adds another layer, streamlining document creation, summarizing correspondence, supporting advisors, and powering real-time customer interactions.
A key trend is the rise of agentic AI — autonomous systems capable of executing multi-step workflows independently. These systems can analyze large datasets, classify claims, identify anomalies, draft policy documentation, and support underwriting decisions with minimal human intervention. While human oversight remains essential, agentic AI significantly reduces operational friction and frees expert staff to focus on complex cases.
The Reinvention of Digital Distribution
Distribution is also evolving. Traditional broker-centric models are giving way to fast, embedded, and personalized channels that meet customers where they already are — banking apps, e-commerce platforms, mobility services, and digital wallets.
AI-driven distribution platforms can instantly verify identity, assess risk, detect fraud signals, and match customers with personalized coverage in seconds. They expand access to underserved populations and support continuous availability — 24/7 — reshaping customer expectations across global markets.
Rebuilding Core Systems for a Real-Time Insurance Model
Insurers worldwide are replacing decades-old systems with cloud-based, API-native platforms that support rapid experimentation and product innovation. AI thrives in this new architecture: data can flow freely, models can be deployed quickly, and underwriting or claims processes can be fully digitized. Companies that launch new features in days — rather than months — gain a material competitive edge, and many insurers now require AI-enabled pilots or implementations to go live within 60–90 days.
Global Differences: How Regions Adopt AI at Different Speeds
Europe
European insurers are global leaders in responsible AI governance. Strict regulatory frameworks emphasize transparency, fairness, and mandatory human oversight. While this creates slower deployment cycles, it also ensures customer protection and long-term trust. European insurers build robust enterprise AI capabilities with strong risk controls and ethical review processes embedded into development.
North America
North American insurers adopt a more pragmatic, performance-driven approach. With fewer regulatory constraints, implementation is often faster and laser-focused on measurable outcomes: reducing operational costs, preventing fraud, shortening claims cycles, and improving customer satisfaction. Though regulations are less strict, companies increasingly maintain a “human-in-the-loop” to avoid algorithmic bias and reputational risks.
Asia
Asia-Pacific insurers — particularly in Japan, South Korea, China, and Singapore — are at the forefront of large-scale AI adoption. They integrate AI not only into insurance but across broader ecosystems such as health, mobility, smart cities, and financial services. The region is characterized by fast deployment, high investment, and willingness to adopt emerging technologies (e.g., satellite-based analytics, advanced computer vision, autonomous agents) at scale.
Looking Ahead: Insurance Moves from Repair to Predict & Prevent
As AI becomes the operating system of modern insurance, the industry is shifting from paying for losses to predicting and preventing them. This establishes a new global standard: personalized products, intelligent risk mitigation, real-time service, and highly efficient operations.
The insurers that succeed will be those that combine cutting-edge AI with ethical governance, human expertise, and a commitment to creating real value for customers — no matter where they are in the world.
