Insurance customers everywhere, across all lines of business, are clamoring for change. They want more simplicity, transparency and usability and lower rates. In response, regulatory solutions are being proposed in state capitals, and legislative solutions are being discussed and even hotly debated in Washington, D.C.

Meanwhile, Nvidia's annual GTC conference recently wrapped in San Jose, Calif. What started as a niche gathering of hard-core gaming enthusiasts (GTC stands for GPU Technology Conference, and GPU stands for graphics processing unit) has morphed into "The Super Bowl of AI," with a sold-out crowd of over 25,000 people attending in person and thousands more online.

What sets GTC apart from other tech conferences, and why I'm writing about it, is the growing number of non-IT participants. As AI is making English the programming language of the future, the business domain is becoming the language of AI.

This year, we learned that Nvidia's new Blackwell GPU chip is about 40x faster on half the power consumption than their existing Hopper GPU. Nvidia's next-generation GPU releases, Rubin in 2026 and Feynman in 2027, will at least be 40x faster on half the power than their predecessors. Over 90% of AI workloads run on Nvidia GPUs, and that won't change anytime soon.

We learned Nvidia is releasing an open-source operating system, called Dynamo, to orchestrate enterprise-scale GPU workloads. They also announced radical advancements in silicon photonics to accelerate switching in large-scale AI data centers. Add it all up, and Nvidia is moving beyond building AI chips to building "AI factories."

This means the latest language models with a trillion parameters will soon be outpaced by even more powerful systems, with tens of trillions of parameters on the same power consumption at a constant price.

New AI systems won't just be faster, they'll be ever smarter, more adaptable, and capable of handling complex tasks with high precision at massive volumes. This is where insurance comes in.

Imagine a world where the 2,000-odd insurers in the U.S. no longer need their own underwriting, policy administration, or claims processing units. Instead, AI-powered "super processors" handle the heavy lifting, leaving insurers to focus on marketing, finance and investment strategies. Think Visa and Mastercard. Banks once managed their own card networks, but now they outsource everything to these super-processors maintaining only affinity commercial relationships.

On the upside, insurance customers would win with lower premiums thanks to scale efficiencies and reduced overhead. Super-processors would wield unprecedented purchasing power with vendors such as auto body shops and home repair companies, further reducing costs. Litigation would logically be a fraction of what it is today with better information on all sides of a claim, harvesting and processing telematics data at machine speed in real time. Customer satisfaction would improve, perhaps dramatically. Carriers would win with variable, consumption-based pricing.

On the downside, thousands of insurance-processing jobs would disappear. But is that a problem or a solution? We know older insurance workers are retiring in numbers; we also know younger people with choices aren't flocking to the insurance industry. Attracting one talented human to run a digital workforce of 20 bots might be easier than attracting 20 humans to do mundane, bot-like work.

Might the critical path to optimal simplicity, transparency, usability, and lower premiums in insurance be digital black-box agents hosted in insanely complex, massively expensive AI data centers? And might this paradoxical solution be closer than we think?

Amid the daily 8 a.m. to 5 p.m. grind in the Square Mile, it can be easy to forget how much insurance matters. Not just to individuals and businesses, but to entire communities, economies and countries. This is especially true in the face of climate change.

The Los Angeles wildfires are just the latest prominent example of how the ability to recover from disasters depends on insurance, and how a lack of affordable property insurance will have long-lasting implications for individuals, businesses and economies.

It's against this backdrop that we as an industry need to carefully consider our approach to property insurance.

The decisions we make about what's insurable have begun to dictate whether people and companies can harness private property insurance as a tool for adapting to extreme weather and climate change.

Without greater awareness and engagement, we risk private property insurance becoming irrelevant to all but the wealthiest homeowners and most-profitable, best-capitalized companies. And we run the risk that government intervention in property insurance will transform markets in ways we are ill-prepared to cope with – with significant implications for our books of business and profitability.

Government and industry: Who will be responsible for risk?

Local, regional and national governments care deeply about the availability and affordability of property insurance. A lack of affordable insurance can force the need for greater government spending on recovery in the aftermath of disasters. It can also affect where investors decide to invest and lenders decide to lend, and on what terms. It is entwined not only with disaster preparedness and recovery but also with housing affordability and economic development on local, regional and national levels.

Governments also care because property risk is an increasingly political issue. Constituents are complaining as insurers worldwide respond to more frequent and severe extreme weather events by increasing the cost of property insurance or withdrawing from vulnerable geographies entirely. As we've recently seen in California, governments often respond to these kinds of complaints by imposing new regulations, especially around data, ratemaking and pricing. In some cases, quasi-governmental entities step in as (re)insurers themselves: For instance, Canada is setting up a flood insurer of last resort, Italy recently launched a multi-peril reinsurer of last resort, and the U.S. state of Colorado is creating an insurer of last resort for individuals and businesses facing elevated wildfire and hail risk.

At the heart of these efforts is a question of responsibility. As climate change intensifies extreme weather hazards, who will bear the risk? Also, what roles should the insurance industry and government each play in addressing property insurance affordability and risk challenges?

With the answers to these questions being worked out in real time at local, regional and national levels, it would be dangerously short-sighted if we as an industry did not meaningfully engage in these conversations as a partner for the long haul and in good faith.

Resilience and insurability: a two-way street

The insurance industry must urgently work to reduce the emissions that cause climate change, by encouraging and supporting fossil fuel clients in their transition to zero emissions. We are key to bringing lower-emissions energy sources to market, through our investments and by underwriting technologies such as wind, solar and nuclear power.

But climate change isn't just about decarbonization and fossil fuels. It's also about physical risk and helping homeowners, businesses, communities and economies become more resilient to extreme weather and natural hazards.

As an industry, we stand to benefit from reduced losses when homes and businesses have been fortified against floods, wildfires and hurricanes. We need to do more to encourage risk mitigation, through bursaries and other incentives that foster investments in adaptation and resilience. We can push governments to include funding for risk reduction as a priority alongside other regulatory reforms designed to bring down insurance costs. We should also ensure that our models properly account for investments that homeowners, businesses and governments have already made, at both individual and community scales.

Most of all, we need to recognize that resilience and insurability are critically linked. Helping insureds and communities become more resilient will mitigate their risk, increasing the likelihood that we can sensibly continue to underwrite them for years to come. Simultaneously, when we choose to continue underwriting (within reason) places where climate change is intensifying natural hazards, we ensure those communities can continue to attract the investment they need to adapt to climate risk.

Insurance is a for-profit industry, and no one is suggesting that's likely to change anytime soon. But it's illogical to focus solely on short-term financial value when insureds and governments are desperate for assistance protecting multiple different forms of value – embodied in homes, neighborhoods, communities and ecosystems – over multiple time scales.

Property insurance's existential question

For hundreds of years, the insurance industry has been able to make a profit by providing a social good: the funds homeowners and businesses need to recover, rebuild or relocate after disasters. However, climate change and extreme weather, insufficient investment in adaptation and risk reduction, alongside continued development in areas vulnerable to natural hazards, make it unlikely that property insurance as we know it will continue indefinitely.

The balance of responsibility for property risk is shifting, with governments, businesses and individuals each having a new role to play. For the insurance industry, the question is whether we want to be a supportive partner in deciding what the future of property insurance looks like or stand by while others make the choice for us.

For years, the insurance industry has struggled to attract young professionals. Despite offering stable careers, strong earning potential, and meaningful work, insurance is overlooked by many college graduates in favor of tech-driven industries. 

The challenge? Outdated systems and technology that don't align with what Gen Z expects from their workplace.

If insurers want to build the next generation of talent, they must modernize their workflows and invest in automation. Gen Z will refuse to tolerate poor systems and processes that make them inefficient just because "that's the way we have always done it." Here's how upgrading your systems can make insurance a top career choice for young professionals.

Why Gen Z Prioritizes Technology

Today's college grads have grown up in a digital world. They expect seamless, intuitive technology in their personal and professional lives. According to a Deloitte study, 91% of Gen Z employees say technology influences their job choices. Outdated systems frustrate young employees, leading them to seek careers in industries with modern tools. When I was interviewing for positions on the carrier and broker sides, I would make sure to ask about their systems, and usually the best response they would come up with was along the lines of "You know, every company has its challenges."

By adopting better automation, cloud-based platforms, and AI-driven workflows, insurance companies can create an environment where young talent thrives.

How Better Technology Creates a More Attractive Workplace

1. Efficiency That Matches Expectations

Gen Z is accustomed to speed—whether it's instant communication or real-time data access. If an insurer relies on legacy systems that require manual data entry, slow approvals, and redundant paperwork, young professionals will see it as inefficient and outdated. Modernizing systems with automation tools reduces tedious tasks and lets employees focus on more strategic, engaging work.

2. Collaboration and Remote Work Readiness

The next generation values flexibility. Cloud-based platforms enable remote work, seamless collaboration, and real-time updates—key factors in attracting young professionals who prioritize work-life balance. A McKinsey report found that 87% of Gen Z employees want hybrid or remote options. Companies that embrace this shift will have an advantage in recruiting top talent.

3. AI and Automation for Higher-Value Work

Young professionals don't want to waste time on repetitive tasks. AI-driven automation eliminates manual processes, allowing employees to focus on problem-solving, client engagement, and innovation. When insurance firms adopt smarter workflows, they create a workplace that feels dynamic and forward-thinking—something Gen Z values highly.

The Bottom Line: Modernization Is a Recruitment Strategy

Improving your technology isn't just about efficiency—it's about talent acquisition. While the brand awareness of the insurance industry is based on funny characters advertising personal auto and home coverage, the companies that invest in automation, seamless workflows, and AI-driven processes will not only operate more effectively but also attract the best young talent in the industry.

In 2025, insurance carriers are shifting their focus to drive growth. They're exploring new business opportunities while prioritizing relationships with independent agents.

However, to make their relationships with agents stronger, carriers must first understand what independent agents want and need. Vertafore's recent report, "Independent agents on improving carrier partnerships: Report for insurance carriers," analyzes survey responses from nearly 1,300 independent insurance agents to better understand their daily interactions with carriers and identify the tools needed to strengthen these relationships.

Agents identified three core areas where carriers can gain a competitive edge and build deeper connections with independent agents: process, communication and technology.

1. Refine Carrier Processes to Streamline Agent Workflows

The report found that efficient, streamlined processes are the foundation of a strong agent-carrier relationship. Just as a racecar driver relies on their pit crew, independent agents rely on carriers to navigate the onboarding process quickly and minimize administrative burdens, allowing agents to focus on their core strengths: serving clients and growing their business.

For example, 80% of agency customer service representatives said the ability to view and make changes to policies online should be a top priority for carriers. That number jumps to 83% for policyholder billing status. In a similar fashion, just over a third of respondents said it's important for carriers to invest in better onboarding and licensing tools and processes.

Agents aren't looking for flashy products; these outlined priorities demonstrate the big value that simplified processes bring to the table. From onboarding to claims handling, quick, available, and accurate information from carriers is vital.

2. Prioritize Clear and Responsive Communication

In addition to process efficiencies, the survey revealed that agents want clear, prompt communication when working with carriers, especially for underwriting and policy updates. As shifting market conditions and a complex underwriting environment bring big changes for carriers and agents alike, it's vital for carriers to communicate any changes quickly and clearly to minimize confusion and build trust.

According to the survey, 78% of agents cite ease of communication as key to giving more business to carriers. Producers and account managers also ranked personal relationships with underwriters (60%) and claims service (75%) as top factors that influence how they place new business. Survey respondents said that having a designated underwriter helps them write policies with more confidence, as they're able to rely on that personal relationship.

While technology is essential to facilitate strong communication between carriers and agents, it's not always the complete solution. Chatbots are a good example. While the insurance chatbot market is rapidly growing, and expected to hit nearly $4.5 billion by 2032, the surveyed agents mostly had a negative view of chatbots.

Only 15% of respondents said chatbots are "must-have" technology. Many agents voiced frustration with carrier chatbots and urged their carrier partners to make live assistance from real, seasoned team members more readily available.

Poor communication erodes trust, leaving agents feeling less inclined to place business with a carrier. If automated chatbots can't provide correct or complete answers, their efficiency doesn't compensate. In contrast, carriers that prioritize personal connections and responsiveness set themselves apart as top performers.

3. Adopt Modern Technology to Improve the Agent Experience

The last big takeaway is that technology modernization remains a top priority for agents and carriers. The agents surveyed reported the following capabilities as the most important to their day-to-day work:

• Personal lines raters: Seven in 10 independent agents said digital personal lines rating and submission is a must-have. And raters for commercial lines are increasing in demand, as well.
• Digital document and policy delivery: Six in 10 respondents agreed that digital document and policy delivery is critical when engaging with carrier partners.
• AMS (agency management system) integration: Half of independent agents said it's important for carriers to integrate with their agency management system.

Integrated and easy-to-navigate systems significantly reduce the time agents spend on manual tasks, standardizing their workflows and increasing their capacity to write business. By investing in effective technology, carriers can set the tone for strong agency partnerships and achieve sustainable growth.

Next Steps for Carriers

These survey results make one thing clear: independent agents want efficiency, responsiveness, and modern technology. They expect carriers to invest in tech that streamlines workflows while enhancing, rather than replacing, their personal relationships with clients.

Carriers who refine their processes, improve communication, and invest in the right technology will stand out in a competitive market. By doing so, carriers can get the best out of their agency relationships, setting everyone up for long-term success.

The demand for esoteric asset-backed securities (ABS) – which bundle less traditional assets like music royalties, timeshare loans, and leases for aircraft and data center space – surged in 2024. This appetite, which is expected to remain high in 2025, was largely driven by insurers and other institutional investors looking for yield, diversification, and duration that match their portfolios amid growing uncertainty across financial markets.

In 2024, interest from buyers far exceeded the available supply, which was already at records. Fortunately, supply conditions in the year ahead appear promising as a tighter spread environment and high demand for esoteric ABS are favorable for both programmatic and first-time issuers.

Insurers, in particular, have been drawn to the asset class due to its relative value and diversification versus other, more traditional options like investment-grade corporate bonds.

Record ABS Issuance in 2024

Last year, total ABS supply reached a post-Great Financial Crisis (GFC) record, with $338 billion in new issuance, according to Bloomberg. Notably, esoteric ABS, a previously niche subsector that has been steadily growing, made up more than 30% of the total.

Additionally, because of record issuance and a higher interest rate environment post-COVID-19, fewer deals are being called, which has further increased the market's size. This growth pushed the size of the outstanding total ABS market to nearly $900 billion, with esoteric ABS now encompassing approximately 40% of the asset class.

This growing supply should help alleviate the bottleneck seen in 2023 and early 2024, when investors faced a scarcity of attractive deals.

A Market Overwhelmed by Demand

Despite record supply, oversubscription levels in 2024 highlighted the intense demand for esoteric ABS. A survey of brokers active in primary esoteric ABS issuance conducted by Conning found that deal oversubscription levels remained elevated throughout the year, averaging just below five times across the capital stack, while some new issues were oversubscribed by more than 10 times in peak months.

Investor interest was particularly pronounced in BBB- and BB-rated tranches, which saw average subscription rates of 6.4 times and 6.6 times, respectively, largely driven by their generally wider spreads and smaller class sizes.

Strong Inflows Into Short-Duration Strategies

Consistent fund flows into short-duration fixed-income strategies provided another demand tailwind for ABS, which generally resides in the front end of the risk spectrum. An analysis of 25 large retail ETFs focused on the ultra-short, one- to three-year space revealed that investors poured more than $15 billion into these short duration funds in 2024, with net outflows occurring in only nine weeks of the year.

While this sample captures primarily retail activity, we can deduce that institutional flows into similar strategies were likely multiples of these figures, reinforcing the strong technical backdrop for esoteric ABS.

A Strategic Fit for Long-Term Investors

As insurers seek alternatives to traditional fixed income, esoteric ABS is emerging as a valuable tool for portfolio construction. Beyond offering yield enhancement, these securities can be structured to align with insurers' liability profiles, providing predictable cash flows over extended periods.

For example, esoteric ABS can deliver steady and predictable long-term income streams that closely match the long duration liabilities of annuity payments or pension obligations. Music royalty-backed ABS deals are one approach insurers may be able to pursue for potentially steady cash flows.

Opportunities to Enhance Yield, Diversification

Esoteric ABS also offer a compelling diversification advantage. Traditional fixed-income sectors are highly correlated with economic cycles, and current market conditions that are shaped by monetary policy, fiscal uncertainty, and legislative shifts have recently heightened volatility.

By incorporating esoteric ABS into their portfolios, insurers and other long-term investors can gain exposure to assets with lower correlation to traditional market risks. Sectors such as aircraft leases and fiber optic network contracts, for example, generate cash flows that are largely independent of broader, traditional market cycles.

A Strong 2025 Outlook

As we move into 2025, the demand for esoteric ABS is expected to remain robust. With spreads on investment-grade corporate bonds near historically tight levels, institutional investors are increasingly turning to securitized credit—and esoteric ABS, in particular—as an attractive alternative to the well-trodden path of traditional fixed income instruments.

With its ability to provide higher yields and relatively stable cash flows, the asset class will continue to be an attractive option to diversify portfolios while maintaining effective asset-liability matching. It will continue to grow and establish its role as a vital part of institutional investment strategies in 2025 and beyond.

Insurance companies love paperwork. Not because they want to, but because the industry practically runs on it. Policies, claims, renewals – every step comes with forms, approvals, and a whole lot of waiting. No surprise that over 80% of insurance agencies struggle with slow manual processes.

They are a bottleneck that frustrates customers and keeps teams buried under endless admin work. But the problem isn't the work itself. It is how it is getting done. The old way? Too many steps, too much waiting. The better way? Smoother workflows, automation that actually helps, and a system that moves as fast as your team needs it to.

Let's break down seven ways to make that happen. Some of these will be obvious but underused, while others might completely change how you look at your operations. Either way, by the end of this, you will have a game plan to ditch the inefficiencies and finally get things moving.

With Medicare and insurance expenditures projected to rise from 9.1% of GDP in 2023 to 12% by 2035, the pressure on insurers to optimize costs and efficiency has never been higher. Here are seven proven ways insurance companies can streamline their tasks and keep up with the rising demand without stretching their teams too thin.

1. Automate Claims Processing

Insurance companies that still rely on traditional methods of claims processing suffer from redundant, cluttered, and incorrect data. Manual claims processing takes weeks or months because it requires extensive paperwork and needless back-and-forth communication.

All these factors result in a larger claims processing team, delayed manual verification, errors with incorrect payouts, less effective detection of fraudulent activity, and ultimately dissatisfied customers.

Therefore, to take the first step toward streamlining tasks, insurance companies need to automate the claims process. Here's how to do it:

• Use AI models to review claims, detect potential fraud, and make the process more secure.
• Implement OCR (optical character recognition) to extract data from forms, receipts, and medical records for reduced manual data entry and errors.
• Use straight-through processing (STP) to automatically approve or flag claims based on predefined rules to minimize the need for manual approvals.
• Provide real-time status updates through automated notifications and allow customers to track their claims easily.
• Use blockchain technology to securely record and verify claim histories and transactions for easier verification and prevention of fraudulent claims.

2. Use AI-Powered Chatbots for Customer Support

Customer representatives are a huge asset to insurance companies, no doubt about it. But relying only on them comes with its fair share of headaches. Think of long wait times, delayed responses, slower updates, the same questions over and over – that is not exactly great for customer retention.

Therefore, insurance companies looking to streamline their tasks must inculcate AI for better customer support. In fact, customer satisfaction tends to increase by 20% if companies have AI chatbots.

They can facilitate this by automating tasks like initial inquiries, retrieving policy information, handling payment plus billing, offering real-time claim status updates, personalizing customer experience, and ensuring 24/7 availability to customers.

For the implementation of AI-powered chatbots to streamline tasks, insurance companies need to:

• Identify the tasks they will automate, such as handling inquiries, processing claims, or assisting with policy details.
• Make sure the chatbot operates across Web, mobile apps, and messaging platforms for seamless accessibility.
• Train the chatbot with FAQs and policy details. Provide it with extensive training data, including real customer queries, to ensure accurate responses.
• Improve chatbot interactions with natural language processing (NLP) to understand customer intent and provide relevant solutions.
• Integrate with customer relationship management (CRM) and claims systems. Allow chatbots to fetch customer data, policy details, and claim status in real time.
• Set up escalation protocols and make sure complex queries are smoothly transferred to human agents when necessary.

3. Implement Electronic Document Management

Filing, sorting, and chasing down documents eats up way too much time in insurance companies. It slows approvals, drives up storage costs, adds to labor expenses, and makes audit trails a nightmare to maintain.

And let's not forget the risk – physical paperwork can get lost, damaged, or end up in the wrong hands. Not exactly ideal when dealing with sensitive information.

Here's how companies can avoid such occurrences and effectively manage their documents digitally:

• Use OCR and scanning software to create digital copies of all incoming and legacy documents.
• Ensure all documents are secure in cloud storage with encrypted access.
• Implement AI for document categorization and tagging for easier and more efficient retrieval of required data.
• Give role-based access control (RBAC) i.e., authorize limited document access depending on the users' roles for better security and compliance.
• Enable E-signatures for claims, contracts, policy agreements, and other documents to reduce processing time.

4. Analyze Productivity Patterns Using Employee Monitoring Software

Most insurance companies don't realize just how much time is lost in a workday. Between unnecessary meetings and scattered task management, productivity takes a hit. And without clear visibility, it is impossible to pinpoint what is slowing things down.

Using employee time-tracking and productivity software like TimeBee helps identify inefficiencies and ensure employees focus on high-value tasks. It gives managers real-time insights into how tasks flow and helps teams stay productive without feeling pressured.

Plus, with a strong emphasis on ethical monitoring, you can track productivity without invading privacy. Employees see their own time data, which promotes transparency and accountability rather than a surveillance culture.

Here's how to use productivity software to analyze and improve efficiency:

• Use automated time tracking to see exactly how much time employees spend on claims processing, client calls, or underwriting tasks. This helps uncover bottlenecks and prioritize urgent work.
• With activity monitoring, spot where work slows – whether it is excessive idle time, constant context-switching, or prolonged claim approvals.
• Use reporting tools to analyze employee performance and redistribute tasks based on efficiency, preventing burnout and delays.
• Track app and website usage to see if employees are spending too much time on non-work-related activities and adjust productivity strategies accordingly.
• Use historical reports to compare productivity trends, see the impact of workflow changes, and continuously refine operations for better results.

5. Use Predictive Analytics for Risk Assessment

Traditional risk assessment methods are not only outdated but also less accurate and more expensive. Manual evaluations can overlook hidden patterns in customer behavior and often yield inconsistent risk evaluations for similar cases.

This can lead to inefficient assessments and limited data insights. And that is a recipe for inefficiencies – and a higher risk of fraud and financial loss.

However, all of this is easily avoidable if insurers use predictive analytics for risk assessment. Let's see how this can be done:

• Collect detailed historical data on claims, customer behavior, fraud cases, and market trends to train predictive models.
• Implement AI-driven models that analyze past patterns and identify hidden risk factors more accurately than manual assessments.
• Connect predictive analytics tools with external data sources like credit reports, social media activity (where legally allowed), and Internet of Things (IoT) data to refine risk predictions.
• Develop a system that assigns real-time risk scores to policyholders based on predictive insights. This helps underwriters make faster, data-backed decisions.
• Regularly refine predictive models using fresh data to improve accuracy and adapt to new fraud tactics, market shifts, and emerging risks.
• Use predictive analytics to flag suspicious claims and policy applications by detecting anomalies that deviate from typical customer behavior.

6. Enable Self-Service Portals for Clients

Insurance customers don't want to call or email every time they need a simple update. They want quick access to policy details and claim status without waiting on hold. But the problem is many insurance companies still rely on back-and-forth emails for even the smallest requests. On average, businesses waste up to 10 hours per week on manual document signing alone. That is time better spent elsewhere.

A self-service portal lets clients handle routine tasks themselves – faster for them, less work for your team. Here's how to set it up effectively:

• Instead of making them start from scratch, use AI-powered forms that auto-fill important details based on their policy and past claims.
• Give policyholders the ability to generate and download certificates or coverage summaries anytime, eliminating back-and-forth requests.
• Integrate a booking system where customers can set up virtual consultations with agents at their convenience.
• Let users set up alerts for payment due dates, claim status changes, and policy renewals based on their preferences.
• Implement a secure digital vault for important documents where clients can store and access signed agreements, ID verifications, and policy updates.
• Instead of long phone calls, integrate video chat options so customers can connect with an agent directly from the portal when needed.

7. Integrate a CRM System

Managing customer interactions manually is a guaranteed way to slow things down. Missed follow-ups, scattered data, and frustrated clients – it is a mess. A CRM system fixes that for insurance companies by keeping everything in one place. It automates repetitive tasks and makes sure no lead or policyholder is missed. 

Here's how to do it right:

• Go for a CRM that supports policy tracking, claims management, and automated reminders. Generic CRMs won't cut it.
• Store all client details, policy history, claims, and interactions in one system so agents have full visibility at all times.
• Set up automated reminders for renewals, claim updates, and customer check-ins to keep engagement seamless.
• Connect your CRM with email, phone support, and claims processing software to streamline workflows.
• Use AI for lead scoring. Let the CRM prioritize high-value leads and policyholders who need attention, so agents focus on other important tasks.
• Monitor sales, customer interactions, and agent efficiency with real-time data to refine your approach over time.

Streamlining of Tasks: Helping Insurance Companies Succeed

In insurance companies, the more manual work you pile on, the slower everything moves, and the more frustrated both your team and your customers get. That is a losing game. The industry is moving fast, and companies that refuse to adapt will get left behind. So, choose one area, implement the right tools, and start cutting the dead weight. Because the insurance companies that simplify today are the ones that win tomorrow.

With a volatile workforce, an evolving regulatory landscape and an early surge in CAT claims this year, the 2025 insurance landscape is anything but calm. Middle-market businesses are watching closely and assessing their corresponding strategic risk management options to reduce risk and costs.

Overall, commercial insurance rates for the middle market in the U.S. remained stable at 6.9% through Q4 2024, though specific lines display unique trends. While property insurance has stabilized with some regional variations, cyber rates continue to flatten or decrease. Meanwhile, volatility persists in commercial auto and excess/umbrella coverage due to varying exposure profiles, loss history and program structures.

This analysis is based on data collected from 900 HUB middle-market retail brokers and HUB's extensive book of business, representing over 500,000 middle-market clients with revenues up to $1.5 billion in Q4 2024. The data primarily reflects middle-market companies, with distinct differences from the shared and layered complex space, particularly in the property sector.

Property insurance: Stabilization amid catastrophic events

Despite significant natural disasters in 2024, including hurricanes and wildfires contributing to an estimated $50 billion in insured losses, the property insurance market remains stable. Regional disparities exist, with South Florida experiencing premium reductions of 20-30%, while markets such as Nashville see slight increases of up to 5%.

One notable factor shaping property insurance trends is the evolving approach to catastrophe modeling. Traditional models, which rely on historical trends, struggle to keep pace with accelerating climate change. New AI-driven models provide more precise risk assessments by continuously incorporating weather data and real-time environmental changes. The increasing sophistication of these models may lead to improved underwriting accuracy, helping insurers navigate emerging risks more effectively.

Additionally, building codes and land-use policies remain critical in shaping property risk exposure. Recent flooding in unexpected locations highlight the need for more forward-thinking risk mitigation strategies.

General liability and excess/umbrella: Market softening with nuances

The general liability and excess/umbrella insurance markets have shown signs of softening, though outcomes vary depending on business classification and geography. Legal environments play a key role, as jurisdictions with high litigation risks continue to experience pressure on rates. In contrast, regions with favorable legal climates see greater stabilization or slight premium reductions.

Social inflation remains a significant factor, with increased jury awards driving higher claim settlements. Large punitive damages against corporations—fueled by public sentiment—continue to affect underwriting decisions, making it challenging for businesses to secure affordable excess liability coverage.

Workers' compensation: Stability prevails

As a regulated line of insurance, workers' compensation remains relatively stable. Market fluctuations are minimal, but concerns are on the rise. Businesses must continue to manage workplace safety and compliance to control costs and prevent adverse claim developments.

Commercial auto: A persistently challenging market

One of the core insurance lines, commercial auto remains one of the least stable markets due to rising claim costs, litigation trends and driver-related risks. Factors contributing to persistent volatility include:

• Increased vehicle repair costs: Modern fleet vehicles incorporate advanced technology, such as sensors, onboard computers and driver-assist features, leading to higher repair expenses for even minor accidents.
• Litigation and nuclear verdicts: The commercial auto sector faces aggressive legal targeting, with attorneys capitalizing on accident-related claims. High-profile cases have led to substantial settlements, further straining the market.
• Distracted driving and driver shortages: The prevalence of inexperienced last-mile delivery drivers and continued issues with cell phone-related distractions contribute to elevated accident rates. Businesses reliant on delivery fleets must focus on enhanced driver training and telematics to mitigate risk.

Given these challenges, businesses should anticipate continued premium increases for commercial auto coverage and consider alternative risk management strategies, such as self-insured retentions or captive insurance programs.

Cyber insurance: Competitive market dynamics

The cyber insurance market has become increasingly competitive, with rates either stabilizing or declining. A key driver of this trend is improved cybersecurity measures implemented by businesses, reducing insurers' exposure to catastrophic cyber events. Additionally, increased market capacity has introduced more competitive pricing, benefiting policyholders.

Despite a year of significant cyber incidents, including high-profile data breaches and ransomware attacks, underwriters are demonstrating a more measured approach. Companies with robust cybersecurity protocols—such as multi-factor authentication (MFA), endpoint detection, and rapid response capabilities—are in a strong position to secure more favorable rates.

2025 market expectations

Key takeaways from Q4 2024 to apply to 2025 include:

• Property rates are expected to remain stable, with regional variations. Businesses in catastrophe-prone areas should evaluate risk modeling improvements to enhance their insurance strategies.
• General liability and excess/umbrella markets are softening, though litigation risks persist. Companies should remain vigilant about social inflation and high jury verdict trends.
• Workers' compensation will likely continue its trend of stability. Employers should focus on loss prevention and workplace safety programs.
• Commercial auto remains a challenging line, with continued cost pressures. Businesses should explore risk management solutions to mitigate rising premiums.
• Cyber insurance remains a competitive market, with opportunities for cost savings. Strong cybersecurity measures will be crucial in securing favorable rates.

By understanding these market dynamics, middle-market businesses can better navigate the evolving insurance landscape, optimize risk management strategies and ensure financial resilience.

Insurance Thought Leadership

How is artificial intelligence changing the current business landscape?

Ron Rock

The opportunities for using AI and data analytics in financial services are huge. It really comes down to how we can get all the innovation instituted into insurance companies and banks in a highly regulated environment.

Pete Blackshaw

The good news for fintech entrepreneurs is you can do a lot with less. You still have to have a really good idea. It has to be an idea that can scale. But you don't have these massive barriers that you had maybe a few years ago. 

When I did my first startup, I raised $31 million, and that was probably on the low side for dot-coms. This time, I only raised $1.2 million, and I still have a decent amount in the bank. 

We're using AI for everything. I think 80% of our coding is AI. The economics of launching a business have really changed.

Insurance Thought Leadership

Most of the early focus on AI has concerned how it can improve productivity, but you’re taking a different approach with BrandRank.AI. You’re trying to deliver a service that simply wasn’t possible before AI. 

Pete Blackshaw

About 95% of the attention is on AI as the efficiency steroid. I'm going down the path of AI as the mirror. 

The reason is that AI is becoming the new purchase funnel, which is a story that not enough people are talking about.

We've been doing exhaustive research, looking at behavior patterns. Everyone is going to AI for everything now - what product to buy, how to use products. This has massive implications for businesses. 

Search 1.0 is a $250 billion industry, and Gartner predicts that by the end of 2028, half of it will shift into what I call the answer economy, based on AI-based search. Even if only 10% shifts, that's a massive change.

For brands, it's critical to understand what shows up when you type in your name and why. Who's getting exposure? What are the consequences? 

It's very tricky, because companies spent 25 years trying to figure out how to become one of 10 blue links in Google searches. If you didn't like the results, you could buy an advertisement. 

Now search provides one blended response - I call it a prompted moment of truth. Either you're in the response the AI prepared or you're not, and most of the time, you're not.

While everyone should play the efficiency card - you almost can't avoid it just to be accountable to shareholders - I'm not sure that's the big idea. I think the more disruptive idea is that these AI bots are becoming the new window into brand identity and reputation. 

They're wickedly smart and the world's greatest BS detector. If you're exaggerating your claims, greenwashing, or overstating product performance, they'll call you out in two seconds. At BrandRank.AI, we’re tracking and measuring what the bots are saying about you.  

We’re offering a sort of insurance - you can't afford not to know what the bots are saying, because a financial analyst will use them to dig up dirt on you before talking to the CEO on a quarterly earnings call. That's today's reality.

And the speed of change is incredible. I'm paranoid all the time. Every five minutes, there's another big AI announcement.

The good news is that every time there's a wave, there's probably an opportunity for an entrepreneur to seize the moment before anyone else does. But my partner and I joke that we're only 15 minutes ahead.

Insurance Thought Leadership

We’ve published some about the death of the marketing funnel, which I think is a profound change. Tell us a bit more about what you see changing.

Pete Blackshaw

I presented to all the top executives at one of the world’s largest media players, and these are really tricky issues. A good AI search response has a sliver of something the Wall Street Journal said, it's got a piece of Bloomberg, it's got some other thing. A few of the AI search sites are getting into attribution, but I wouldn't say it's perfect attribution. So clicks and traffic drop for news sources in an already challenged industry. And the consumers really like what’s happening.

Small businesses depend on referral traffic from search, and it's just hard to get now. Or to get it, it's a very long-term process. You can't just buy advertising.

Insurance Thought Leadership

Once you’ve spotted a problem, how do you help companies improve their brand reputation and visibility?

Pete Blackshaw

We believe in a formula that Brand = RV-squared. There are three critical metrics we focus on.

First is visibility - do you show up when someone's asking for advice? For example, when someone asks, "What's the best insurance company?" who appears in the results?

Second is vulnerability, which is where BS detection comes in. We create a digital footprint of what the brand is promising, then use AI to find any gaps. Different AI engines have different standards. Anthropic is very strict about green claims and will quickly identify greenwashing. Other engines might be more lenient. While it's not as dramatic as CNN versus Fox News, these algorithms think differently, so monitoring all engines is essential.

The third metric, where you have a real chance to change outcomes, is content readiness. Through thousands of audits, we've learned that the number one algorithmic anchor feeding AI results is the publisher site or brand site. Oddly, big brands - the ones spending $6 million on Super Bowl ads - are often answer-illiterate. When you visit their websites, they struggle to answer basic questions. If someone asks about a sick child using their product, they'll likely show an e-commerce ad instead of providing an answer.

Younger challenger brands are outperforming larger brands because they intuitively answer every consumer question. AI engines constantly scan brand websites for new data, maybe a thousand times weekly. Whether you're a publisher or big brand, you need to market to algorithms and make your content readable - what we call content liquidity. 

This means doing boring but essential work like FAQs. Nobody gets awards or bonuses for this, but nothing pays bigger dividends in AI than these fundamentals. Simple site search is crucial, too.

Everyone gets excited about AI's sex and sizzle, but I say forget it. Go back to basics, back to boring fundamentals. If you want to win at AI and improve your reflection, just answer the questions. It's amazing how ill-equipped brands are to do this - but that's good for us because it's our business model.

Insurance Thought Leadership

What does your service look like to a customer?

Pete Blackshaw

We provide a dashboard that allows clients to monitor various metrics. For visibility alone, we conduct 200 queries daily for a single brand across multiple scenarios. For example, we'll search "what's the best diaper?" or "what diaper do doctors recommend?" or "what brand is least likely to give me baby rash?" - essentially covering all the typical Google searches. We then track whether your brand appears, assign a score, and monitor changes over time. This real-time tracking enables optimization and team motivation.

Insurance Thought Leadership

What would an example or two of how companies use your service?

Pete Blackshaw

When launching a product, what search engines or AI answer engines say becomes disproportionately important. Think about all the influencers who hear about a new product and go to Google, and now they're going to AI answer engines. Your presence in answers at the early stage of the launch is critical. We've done projects, including one for a company that Ron's affiliated with that does many sponsorships, to determine if they're paying off. If you're investing heavily in offline sponsorship, you want to see if it changes what AI engines say about that particular topic.

We're seeing many behavioral shifts. People are moving from cookbooks to having recipes dictated to them in multiple languages, which has huge implications for food trials. We're analyzing that. I'm working with a Fortune 50 company where we're monitoring their CEO. CEOs are brands, and they can have a big impact on outcomes. They, too, need to be interrogated: Is the brand believable?

I wouldn't be surprised if some of what I'm describing becomes very central to the insurance and risk business because we're essentially letting companies de-risk. They can learn, What are the counter-signals? Brands want to remove exposure, and some brands are so big that the right hand doesn't know what the left hand is doing. AI serves as that third party that says, "I know what's going on."

Insurance Thought Leadership

Ron, you follow innovation super closely, given the companies you’ve attracted to Ohio and are trying to attract. What are you seeing?

Ron Rock

Beyond what Pete discussed, the biggest trend I'm seeing is the growth of embedded technology, particularly in how it's being integrated into customer flows across different verticals. 

AI in insurance is a particularly interesting area. While it has the potential to streamline underwriting and make it more personalized, there's concern about potential bias. We want to remove biases and achieve hyper-personalization in insurance, but there's a legitimate worry that AI models could eventually replicate the same biases present in previous models. It's both a challenge and a huge opportunity.

Insurance rates have skyrocketed in the last couple of years - it's insane how much we're paying for coverage. Being able to bring those costs down would be amazing.

Insurance Thought Leadership

Given what you’re doing for Ohio, Ron, and what you, Pete, previously did to attract jobs to Cincinnati, how do you think AI will affect talent recruitment and job locations in the coming years?

Pete Blackshaw

There was this incredible movement of people looking toward the center of the country post-COVID. Everything got disrupted, new e-commerce models emerged, and San Francisco was like a deer in the headlights. That wave has ebbed some because there's such furious innovation in the AI area.

That said, I'm a big believer in creating new hubs, and the developments in Ohio are really encouraging. The fact that we've got to triple or quadruple the number of computer engineers just to feed Intel creates a good foundation because they could become tomorrow's startup entrepreneurs. 

If I could wave a magic wand, I would quadruple what Ron's been doing for many years. The only way you're going to get net incremental jobs is if you have a lot more entrepreneurs. The big institutions won’t admit it, but AI is inevitably going to lead to efficiencies. You're not going to see net incremental growth from the big enterprises. Most folks will tell you in private that they could run a factory on five people with AI.

We need to be careful not to assume entrepreneurs have to take the traditional university journey. The world is learning fast on Khan Academy, TikTok, on-demand videos. The way the younger generation is teaching AI is mind-boggling. ChatGPT is like Socrates in your pocket. The traditional degree models might not be as relevant unless you're a computer engineer.

I think we can get a lot more entrepreneurs in the pipeline because things they thought were absolutely critical, like finding the world's greatest engineer, to take their app idea to the next level probably won't be necessary. They'll just need to know how to prompt really well and have some expertise that takes the coding the last mile. 

Ron Rock

The workforce within organizations is going to be changing. The more transactional or manual process-driven work will kind of go away, but then you're going to have all these new jobs related to data analytics, AI, etc. So there is an opportunity for us to upskill. We want to make sure that the people already employed in financial services are moving with the times. 

Insurance Thought Leadership

How could Ohio's universities serve as hubs for AI innovation, particularly given institutions like Ohio State and the University of Cincinnati medical school?

Pete Blackshaw

JobsOhio has invested significantly in the University of Cincinnati with that vision in mind, and I think AI could be that catalyst. I'm very tight with the Boston community around MIT and Harvard, and they're almost open-sourcing their university for anybody doing relevant work. That's what we've got to figure out here.

Insurance Thought Leadership

Ron, I think I just heard a huge endorsement for JobsOhio. Any final thoughts?

Ron Rock

As all industries start to evolve with AI, we also have to evolve. We need to examine how we programmatically change what we offer companies that are pursuing innovation. 

We have companies that are building within, and we have companies that are partnering. Being able to change with those times is important as an economic development organization, as well.

Insurance Thought Leadership

Thanks, Ron and Pete. This has been great. 

About Pete Blackshaw

Pete Blackshaw is the founder and CEO of BrandRank.AI, a Cincinnati-based startup and SaaS platform and service that helps brands measure, protect, and grow trust through the power of AI-driven search and discovery. Pete recently served as CEO of Cintrifuse, a startup catalyst, incubator, and venture fund backed by corporations such as P&G and Kroger, and considered a national role model. At Cintrifuse, Pete and his team supported hundreds of startups. Previously, Pete was the global head of digital at Nestlé, Switzerland, the world’s largest food company. He also served as CMO at NM Incite, a Nielsen and McKinsey joint venture, and started his career in brand management at Procter & Gamble, where he co-founded the first “interactive marketing” team and later launched PlanetFeedback.com, a VC-backed consumer feedback platform that was acquired by Nielsen. Pete is the author of Satisfied Customers Tell Three Friends, Angry Customers Tell 3000 (Doubleday). He holds an MBA from Harvard and a bachelor’s from UC Santa Cruz.

About Ron Rock

Ron Rock leads the financial services sector at JobsOhio.  His role is to create and oversee the strategy for growing existing Ohio businesses and attracting new businesses to the state.  With over 25 years of financial services experience, Ron brings a deep knowledge of the industry and is constantly exploring new opportunities to strengthen the ecosystem. JobsOhio is Ohio’s private economic development corporation and works outside – but alongside – state government, principally making loans and grants to support business attraction, expansion, and retention efforts within the state.

A recent study by Munich Re Life US and health data analytics firm Klarity leveraged biometric data from the UK Biobank and found to consider alternate attributes to Body Mass Index (BMI) for assessing mortality risk. Although BMI is an attribute that has been used in life insurance underwriting since the early 20th century to assess obesity and its mortality impact, BMI alone may be an imprecise indicator for metabolic health.

The study considers other physical measurements that can be layered onto BMI to help refine risk assessment, including waist circumference, waist-to-height ratio, and waist-to-hip ratio. 

• The study found that waist-to-height ratio could be used to identify low-mortality-risk individuals in the overweight BMI category.
• Individuals with an overweight BMI but a healthy waist-to-height ratio have a 15% lower mortality risk than those with a healthy BMI but an unhealthy waist-to-height ratio.
• This outcome was also true for other measurements such as waist-to-hip and waist circumference.
• Full results can be found here.

While the study provides a compelling case for considering alternative measures like waist circumference, waist-to-height ratio, and waist-to-hip ratio, it is important to note that these physical measurements require controlled conditions for accurate measurement, making their widespread use in life insurance underwriting more challenging. Carriers looking to adopt these measures into their underwriting processes can start by piloting programs to collect data, assess customer participation rates, and gain insights into how these attributes are distributed across their insured population. Such pilots serve as a practical step toward evaluating the feasibility and value of integrating these novel measures. 

This study is part of our series examining the potential of third-party data sources to enhance life insurance underwriting.

Sponsored by ITL Partner: Munich Re