The trend: GenAI tools have already helped life insurers streamline certain repetitive tasks and improve the efficiency of their businesses.
According to Insurance Newsnet, there’s more change to come in 2025 and beyond, including:
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Personalized pricing and discounts: GenAI tools can help life insurers better analyze data from wearables like Fitbits, which some insurers already offer discounts for wearing, per the American Hospital Association. With these analytics, life insurers can offer personalized pricing to customers who maintain healthier lifestyles, incentivizing healthier behavior and reducing risks of expensive claims.
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Chatbots and virtual agents: AI-driven chatbots and virtual agents help automate basic customer service tasks, improving response times and satisfaction. As these systems evolve, they will provide more personalized interactions and assist with claims, helping to minimize chatbot fatigue and freeing human agents for higher-value work.
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Speeding up claims processing: AI can automate routine tasks like document and image review, fraud detection, and initial claims assessment. This lets insurers process claims faster, improve the customer experience, and enhance operational efficiency. And as this improves, it’ll be what insurance customers expect.
Our take: GenAI implementation in the insurance industry is likely to accelerate in the coming year as President-elect Trump aims to reduce red tape on AI use and appoint business- and tech-friendly judges.
Consequently, insurers will face increasing pressure to innovate and keep pace with competitors who invest more heavily in AI experimentation.
Dive deeper: Learn what other industrywide changes are on the horizon by reading our data drop “Insurance Trends to Watch in 2025.”
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