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Insurance AI investment rises, but executives urged to pick outcomes first
Insurance Business cites BCG analysis projecting AI spending as a share of P&C revenue will triple this year, while only 38% of carriers generate value at scale from AI in core workflows.
Insurance Business says insurance executives are being pressured to decide where AI fits across underwriting, pricing, claims, distribution, and risk prevention, but Center for Economic Justice executive director Birny Birnbaum argues the starting point should be the outcomes carriers want, not the tools themselves.
Birnbaum, a longtime consumer representative at the National Association of Insurance Commissioners, warned that firms should define their “dreams and values” before selecting models and automation, because the same technology can be used either to expand affordability and availability or to segment policies in ways that reduce consumer options.
The piece notes that AI investment is accelerating, citing BCG’s 2026 analysis that AI spending as a share of P&C revenue is expected to triple this year, even though only 38% of carriers are generating value at scale from AI in core workflows.
While he supports using AI to improve efficiency in sales, underwriting, and claims settlement, Birnbaum said efficiency is not neutral, since data used to target mitigation dollars could also be applied to avoid certain risks and leave consumers with fewer affordable options, tying AI governance to broader public policy goals.