GlobalData: AI impact broadens beyond underwriting
Underwriting and risk profiling remains the most positively impacted area of the insurance value chain by artificial intelligence (AI). However, the share of industry insiders selecting this area has declined since 2023, suggesting growing momentum for AI adoption in other parts of the value chain, according to a recent poll by GlobalData, a leading data and analytics company.
The poll, conducted via GlobalData’s Verdict Media sites in Q3 2025, found that 45.8% of respondents identified underwriting and risk profiling as the most positively impacted area by AI. This was followed by claims management (20.3%) and customer service (17.6%). While underwriting continues to lead, the proportion selecting it has dropped by 9.6 percentage points (pp) compared to Q3 2023, with a smaller decline of 1.4pp seen in claims. Meanwhile, customer service saw a 6.2pp increase, and product development more than tripled in recognition—from 1.9% to 7.2%.
Charlie Hutcherson, Associate Insurance Analyst at GlobalData, comments: 'The results indicate that insurers are expanding their AI use cases across the value chain. While underwriting innovation has slowed due to challenges around regulation, data quality, and fairness in risk models, other areas—particularly customer service—have gained traction.' AI-powered automation is enabling faster triage, more accurate responses, and higher satisfaction rates. Additionally, the rising impact of AI in product development reflects insurers’ growing focus on trend analysis, coverage gap identification, and speed to market.
Hutcherson adds: 'While underwriting and risk profiling still leads in terms of AI’s perceived value, the shift we are seeing highlights a more mature and diversified approach. Insurers are realising that AI has transformative potential beyond traditional areas.' With increasing pressure to differentiate, especially amid the rising competition, expanding AI capabilities into customer-facing and product innovation areas will be key.
Hutcherson concludes: 'To stay ahead, insurers must take a holistic view of AI deployment across the value chain. That means not just focusing on efficiency, but also ensuring fairness, transparency, and compliance—particularly as regulation tightens. Those who can strike this balance will be best positioned to build long-term trust and value.'