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AI and biotech could reshape what insurers underwrite
McKinsey estimates 18 emerging “arenas” tied to AI, electrification and biotech could add $29 trillion to $48 trillion in revenues by 2040.
Eighteen fast growing industries linked to AI, electrification and biotech are poised to reshape the risks insurers underwrite, according to a report cited by Risk & Insurance, which said these arenas could also create new business as rate driven premium growth slows.
The report, from McKinsey’s Financial Services Practice, builds on McKinsey Global Institute research and estimates the emerging arenas could generate between $29 trillion and $48 trillion in revenues by 2040, potentially accounting for up to one third of global growth.
Risk & Insurance also highlighted that the arenas grew about 10 times faster than other industries between 2022 and 2025, adding roughly $18 trillion in market capitalization, with AI alone contributing about $11 trillion of those gains.
The shift matters because insurers may need to rethink pricing, coverage and claims models as these new risk sources expand, Risk & Insurance said.