2026-11-13 · Source: Insurance Business US
Summary in 3 Points • Insurers are increasing AI budgets and becoming more selective about projects beyond pilot phases. • 90% of surveyed insurance executives reported increased AI budgets compared to the previous year. • A 2026 WTW survey found that 16% of P&C insurers are using AI to support human underwriters. --- Insurers are raising their AI budgets and becoming more selective about which projects to pursue beyond initial pilot phases. According to KPMG, 90% of insurance executives reported an increase in AI budgets from the previous year, reflecting a shift in focus towards securing investments that promise higher returns. As companies move past early trials, they are now concerned with how to implement AI securely at scale and the associated costs of governance and data protection. A 2026 WTW survey revealed that 16% of property and casualty insurers are currently using AI to assist human underwriters, with 60% planning to prioritise this use by 2028. As AI tools become integrated into daily operations, insurers must navigate the complexities of data access and error management, particularly in underwriting and claims servicing. This evolution presents both challenges and opportunities for smaller insurers to leverage modern systems against larger competitors still reliant on outdated technology. Insurers are focusing on AI investments that promise higher returns, impacting underwriting and claims processes as they integrate technology into daily operations.
Insurers are focusing on AI investments that promise higher returns, impacting underwriting and claims processes as they integrate technology into daily operations.