Emmanuèle Lutfalla and Louis Fer outline how artificial intelligence is accelerating change across the insurance industry in an article published in Insurance Day on 27 October 2025. According to the authors, insurers are well placed to deploy artificial intelligence because they hold large data reserves and analytical expertise. the Boston Consulting Group ranks insurance as the second most advanced sector in artificial intelligence integration, behind technology, media and telecom.
The authors describe practical uses already in production. customer-facing chatbots now handle 20 to 30 percent of policyholder requests, reducing cost and freeing staff for complex tasks. insurers deploy artificial intelligence in underwriting by analysing historical data to prioritise cases, in claims processing through automated document analysis and image recognition, and in fraud detection by spotting unusual patterns. insurers also use artificial intelligence for product development and dynamic pricing, integrating real-time data from connected devices and usage-based policies to adjust premiums more precisely and personalise coverage.
Alongside these gains, the article highlights significant legal and regulatory risks. the EU artificial intelligence act, adopted in 2024, classifies systems by risk. high-risk applications such as pricing and underwriting in health and life insurance face strict requirements on data quality, fairness, transparency, documentation, human oversight and registration with supervisory authorities. limited-risk tools, including many customer-service applications in non-life insurance, carry lighter obligations. penalties for non-compliance can reach 1 to 7 percent of global annual turnover or between u20ac7.5 million and u20ac35 million.
The authors argue that governance, compliance and legal support are essential as artificial intelligence becomes embedded in operations. they recommend mapping all systems, embedding lifecycle controls such as conformity assessments, documentation and audits, and defining rules for training data, human review and incident response. integrating legal expertise is presented as critical when negotiating contracts with technology providers, preparing regulatory filings and assessing liability in disputes.
Ultimately, Lutfalla and Fer conclude that insurers who treat governance and legal strategy as integral to artificial intelligence deployments will be best positioned to balance innovation with responsibility and to capture efficiency and customer benefits without exposing themselves to undue regulatory or reputational risk.
