From Pilots to Scale-Ups: Applying AI in Insurance
Can generative AI (GenAI) deliver real value in general insurance today? This was the central question during a ‘power lunch’ discussion at the 2025 Insurtech Insights Europe conference. Guidewire’s Laura Drabik led the conversation with Tom Wilde, CEO of Indico Data, and Terry Buechner, global insurance core systems lead at AWS, who explored the practical applications of AI in insurance.
The Disruptive Power of AI
Tom Wilde contextualized the discussion by highlighting the rapid evolution of AI. He noted the scale of the disruption, comparing it to the fact that approximately 25 million people worldwide identified as software engineers last year. The advent of GenAI essentially allowed anyone with computer literacy to become a programmer. The key challenge, according to Wilde, lies in controlling this rapid expansion. “You wouldn’t, as an insurance company, declare overnight that everybody is allowed to write software to change pricing models,” he stated.
Where AI Excels
According to Wilde, AI excels in areas like summarization. This includes summarizing underwriting and claims models, yielding unprecedented results. Moreover, AI can transform unstructured data, like underwriting guidance, into a programable endpoint.
Buechner emphasized AI’s capacity to process and summarize documents effectively, particularly highlighting its potential in claims and underwriting processes. He believes the hype around AI in claims is justified. He mentioned AI can verify IDs for the first-notification-of-loss or providing first-call resolution. Buechner said, “It’s clear that when used effectively, GenAI will result in faster, more transparent claims processes.”
While this capability extends to underwriting, where AI can ingest and summarize documents, Buechner noted some uncertainty regarding the transition to fully automated underwriting, especially in commercial lines. He underscored the need for human judgment and industry experience. However, he acknowledged that this landscape is rapidly evolving.
Scaling Up AI Initiatives
Drabik referenced Deloitte research showing that while 76% of insurers have implemented GenAI in at least one business function, only 15% have scaled these initiatives effectively. This disparity highlights the difficulty in moving beyond proof-of-concept phases.
Buechner cited a Boston Consulting Group study revealing that only 26% of surveyed companies have the necessary capabilities to generate tangible value beyond the proof-of-concept stage, a figure he believes is likely lower within the insurance industry. The way forward, he suggested, begins with a project that focuses on the core strengths of GenAI.
“Have clear goals in mind and have measurable success factors in mind,” advised Buechner. “A big part of this is about having a test-and-learn culture… So, build in that culture of test-and-learn where, not only do we build upon the capabilities [unlocked] by starting small and building upwards from there, but we’re also able to pull back if it’s not working because the technology has changed or the regulations have changed. We have to be able to scale up when something is working well but also to scale back down when it isn’t.”
