Of the scores of articles we published this year on AI, five, in particular, struck a chord with you, our esteemed readers: on how AI is reshaping workers' comp, compliance and fraud, on how to unlock ROI (a tricky task) and on how AI's progress is accelerating, with no end in sight.
Social inflation remained a hot topic, with two pieces in the top 10 — on how verdict sizes in insurance cases have tripled since COVID and on how insurers are losing billions of dollars before cases even get to trial.
Rounding out the top 10 are articles on how drones are profoundly changing how property claims are handled, how misconceptions about electrical fires lead to disasters that could be prevented and (appropriately for this time of year) what the NFL playoffs can teach us about innovation.
Herewith the highlights from 2025, as determined by your interest in them:
Artificial Intelligence
The most-read article, AI and Automation Reshape Workers' Comp, says "67% of organizations expect over 80% of claims to be automatically triaged and assigned in the future — without any manual intervention." The piece explores other efficiencies that AI offers, describes tools that are detecting fraud and offers advice on how to encourage adoption of AI.
At #2 is Why AI Is Game-Changer for Insurance Compliance. It says: "90% of small business owners are unsure about the adequacy of their coverage. AI serves as an intelligent assistant, quickly surfacing important information and providing context when needed.... The impact includes faster verification, fewer coverage and requirement gaps left unaddressed, and faster time to compliance. As Gartner predicts a doubling in risk and compliance technology spending by 2027, companies recognize that AI solutions that enhance collaboration deliver the greatest returns."
At #3 is The Key to Unlocking ROI From AI. It states its thesis starkly: "Your AI and automation initiatives will fail. Not because of bad code. Not because your data scientists aren't smart enough. But because you'll lack the one thing that determines whether any AI initiative succeeds: observability." It then explains at length how "you can't see what your automation is doing — how it's affecting business processes, where it's breaking down, and what value it's delivering."
How AI Can Detect Fraud and Speed Claims was the fourth-most read. It warns that "today's fraudsters have access to AI-generated medical records, synthetic identities, and eerily convincing deepfake videos, allowing them to construct entirely fabricated incidents with alarming precision." But, on a hopeful note, the article then explains how, "with the ability to process billions of data points in real time, AI-powered fraud detection systems can do what human analysts cannot: instantly cross-reference claims against vast datasets, identify inconsistencies, and flag suspicious activity before payouts occur. This technology enables insurers to detect deepfake-generated documents and videos, analyze behavioral patterns that suggest fraudulent intent, and shut down scams before they drain company resources."
At #6 was my summary of an exhaustive research paper published mid-year on the state of AI and where it would go from there: Mary Meeker Weighs in on AI. Among many (many) other things, the prominent analyst laid out startling detail (the cost of using AI has declined 99% just in the past two years), offered useful examples (more than 10,000 doctors at Kaiser Permanente use an AI assistant to automatically document patient visits, freeing three hours a week for 25,000 clinicians) and made some bold projections (by 2030, AI will run autonomous customer service and sales operations, and by 2035 will operate autonomous companies).
Social Inflation
At #5 was We’re Losing Billions—Before We Ever Get to Court, and at #7 was The Tripling of Verdict Size Post-COVID. Both were written by Taylor Smith and John Burge, who also wrote two of the three most-read articles of 2024, on what I broadly think of as social inflation (including third-party litigation funding and other aggressive tactics by plaintiff lawyers).
In "We're Losing Billions," they write that property/casualty carriers have a blind spot in how they negotiate: "In an era where 99% of litigated claims settle, the cultural instinct on the defense side to 'hold back' our strongest arguments has become a billion-dollar blind spot. We ration key negotiating points, fearing we’ll run out of ammo. We save key arguments to “surprise them at trial.” We frame less, anchor less, and persuade less. Meanwhile, the plaintiff bar is doing the opposite—and it’s working."
In "The Tripling of Verdict Size," Taylor and John describe data they've collected on 11,000 P&C verdicts, across the industry, to address the fact that carriers typically just see their own slice of the verdicts. They argue that only by amassing better data can insurance lawyers keep up with the plaintiff bar in understanding how a case is likely to play out in a certain venue, in front of a certain judge, against a certain lawyer -- and fashion settlement offers accordingly.
(If those articles appeal to you, I'd encourage you to watch the webinar I recently conducted with Taylor and with Rose Hall: "Modernizing Claims: Competing Against AI-Powered Plaintiff Attorneys.")
Predict & Prevent
Hazardous Misconceptions on Electrical Fires was #8 on the top 10 list, highlighting how the insurance industry can help prevent many of the "approximately 51,000 fires annually in the U.S. [that result] in over $1.3 billion in property damage." The piece describes how we can educate policyholders about the fact that circuit breakers don't catch all electrical problems, that even new homes can have electrical issues and that there very often aren't warning signs of electrical problems before they start a fire. (The piece was written by Bob Marshall, CEO of Whisker Labs, which makes a device, the Ting, that detects electrical problems and that I think of as the poster child for the Predict & Prevent movement. I recently interviewed him here.)
Drones
Drones Revolutionize Property Insurance Claims, at #9, shows how drones have "emerged as a powerful tool for addressing some of the industry's most persistent challenges, including the need for increased accuracy, faster speed, and more cost-effectiveness" in property inspections during the claims process.
Lessons From the NFL
It amused me to reread the final article to make the list: What NFL Playoffs Say About Innovation in Insurance. I wrote it following the conference championship games last January and opened by saying: "My main takeaway from the NFL conference championship games over the weekend was that I'm soooo ready to move on from the Kansas City Chiefs — anyone with me?" I've heard in the past 11 months about plenty of folks who are tried of looking up at the Chiefs in the standings — and, lo and behold, we don't have to worry about the Chiefs in the playoffs for the first time in 11 seasons.
After venting my spleen (I'm a frustrated Steelers fan), I got into how coaches were finally following the data and going for it on so many more fourth downs than they used to, on why it took them so long and on how insurers can learn from NFL coaches and throw off even deeply entrenched bad habits.
Wishing you all a healthy, happy and prosperous New Year!
(While desperately hoping that my Steelers beat the Ravens on Sunday.)
Cheers,
Paul