Insurers shift to governed AI

Sollers Consulting’s CEO Voices Report 2026 and FinTech Global’s May 14 review of first-quarter insurance trends point to the same development: insurers are putting artificial intelligence into daily operations while tightening human oversight around the tools. The new emphasis is not on whether AI can be used in underwriting, claims or service, but on whether it can be supervised, explained and documented. Industry coverage published on May 13 and May 14 said buyers are increasingly looking for systems that support human judgment rather than replace it. (kpmg.com) Regulators in the United States and Europe have already laid out the governance standards shaping that demand. (content.naic.org) ### Where is AI already showing up inside insurers? Sollers Consulting said on May 13 that CEOs and senior leaders across Europe, North America and Asia-Pacific reported AI is now touching “almost every part of the insurance value chain.” The firm said examples already in use include automated ingestion of broker submissions and claims documents, AI-assisted triage and fraud detection, virtual assistants for customer and broker service, and tools that help underwriters and claims handlers synthesize large volumes of information. (insurancebusinessmag.com) Insurance Business reported that executives interviewed for the study described a move from experimentation to day-to-day operational use. Michał Trochimczuk, Sollers Consulting’s president and co-founder, said AI is already improving efficiency, particularly in processing unstructured data, while Marcin Pluta, the firm’s other co-founder, said roles are shifting toward more technological, analytical and strategic work. ### Why are insurers talking more about human judgment now? Sollers Consulting’s report said the executives it interviewed did not describe AI as a substitute for people in complex insurance decisions. (insurancebusinessmag.com) The study said leaders expect human judgment, empathy and strategic decision-making to become more important alongside automation, especially as routine administrative work is reduced. Underwriters and claims professionals, the report said, are likely to spend less time gathering and rekeying data and more time on negotiation, case management and complex judgment calls. KPMG’s insurance CEO outlook points in the same direction. KPMG said 73% of insurance CEOs are prioritising AI investments to streamline underwriting, claims and customer experience, while 77% identify workforce transformation and upskilling for AI as a top constraint and opportunity for growth. Erik Bleekrode, KPMG China and Asia Pacific’s head of insurance, said AI’s impact will depend on investment in people and robust governance frameworks. ### What does “governed AI” mean in practice for insurance buyers? FinTech Global reported on May 14 that, according to analysis from Tietoevry, “compliance, supervision, explainability and responsible usage” have replaced enthusiasm for proofs of concept. (insurancebusinessmag.com) The publication said insurers are increasingly judged on whether AI can be made controllable, governable and credible enough to scale. In procurement terms, that points to systems that can show who reviewed an output, when a human overrode it, what data informed a recommendation and how a decision path can be reconstructed for an auditor or regulator. (kpmg.com) That reading is supported by U.S. and European regulatory guidance requiring documented governance, risk controls, transparency and oversight for AI use in insurance. ### Which rules are pushing insurers in that direction? The National Association of Insurance Commissioners adopted its model bulletin on the use of AI systems by insurers on Dec. 4, 2023. (fintech.global) The bulletin says decisions or actions affecting consumers that are made or supported by AI systems must comply with applicable insurance laws and regulations, and it anchors expectations in the NAIC’s 2020 FACTS principles: fairness, accountability, compliance, transparency, and safe, secure and robust systems. EIOPA published an opinion on AI governance and risk management on Aug. 6, 2025, addressing national supervisors in Europe. (fintech.global) EIOPA said AI use is already increasing across pricing, underwriting, claims management and fraud detection, and said the approach should be risk-based and proportionate, with governance and risk management requirements aligned with the EU AI Act and existing insurance rules. ### What should readers watch next? The next useful markers are regulatory adoption and vendor selection. In the United States, insurers and vendors will keep measuring products against the NAIC model bulletin and the FACTS framework. (content.naic.org) In Europe, EIOPA’s Aug. 6, 2025 opinion and the AI Act implementation timetable will remain central reference points for carriers buying AI tools for underwriting, claims and fraud operations. (eiopa.europa.eu)