Published Survey Reveals Insights on AI Implementation
In a significant shift for the U.S. insurance industry, artificial intelligence (AI) and insurance technology are becoming increasingly prioritised, with top executives driving the adoption across the sector. This is according to Conning's third annual survey, "AI in Insurance: The C-Suite Verdict."
The survey, which primarily focuses on C-suite executives, highlights that technology adoption, including AI, is now a boardroom priority. Insurance companies, particularly Managing General Agents (MGAs), are investing heavily in modern technology stacks, unburdened by legacy systems, to attract top technology talent and accelerate innovation. This digital agility is proving to be a competitive differentiator, enabling MGAs to pursue complex opportunities that traditional insurers may overlook.
One area where AI is making a significant impact is underwriting. Conning's broader industry surveys indicate that MGAs are actively utilising AI and advanced analytics, with a notable focus on underwriting efficiency and risk assessment. The ability to deploy these technologies rapidly is a significant factor in their growth outpacing the broader property/casualty insurance market.
The rapid growth of fronting companies, which facilitate MGA operations by providing paper and regulatory support, is partly attributed to their embrace of technology, including AI, to manage risk, streamline operations, and enhance distribution. This has contributed to fronted premiums now representing more than 20% of total MGA-produced premiums.
Companies that effectively leverage AI and analytics are not only improving operational efficiency but are also better positioned to adapt to a more complex and competitive environment, as the fronting and MGA markets begin to stratify based on technological capability.
While the exact quantitative metrics from Conning's 2025 report are not fully outlined in the available search results, the clear trend is that AI adoption in the U.S. insurance industry is being championed at the highest levels of leadership, is a critical factor in the growth of MGAs and fronting companies, and is increasingly viewed as essential for maintaining competitiveness in a dynamic market. The industry is moving beyond pilot projects to strategic, executive-driven deployment of AI and related technologies, with a focus on underwriting, risk analytics, and operational efficiency.
As the insurance sector enters a phase where "agility wins," there are challenges to be addressed, including rising operational costs and the need for continuous innovation to maintain competitive advantage. However, with the right strategies and investments, AI is set to transform the industry, streamlining repetitive tasks, and requiring a shift towards valuing customer relationship skills and technological literacy. By 2035, the insurance workforce is expected to be significantly transformed as a result.
Global consumers acknowledge the benefits of deploying AI in insurance but are skeptical about its commercial applications. Nonetheless, AI is increasingly being leveraged for claims, operations, and other business areas to improve efficiency and decision-making. Generative AI has shown the strongest uptick amongst all AI technologies in insurers' adoption.
In conclusion, the insurance industry is undergoing a digital transformation, with AI playing a crucial role. The survey by Conning, a leading global investment management firm, underscores this shift, gathering responses from top US C-suite executives and decision-makers who "greenlight" the adoption of these emerging technologies. The survey also reveals concerns about the ethical implications of using AI and ML in the actuarial field, the need for more training and education for actuaries to effectively use these tools, and a need for better understanding and regulation of AI and ML in the actuarial sector. The survey also highlights the potential benefits and challenges of using AI and ML in the actuarial field, and the increasing integration of artificial intelligence into U.S. insurers' workflows across various impact areas.
The survey by Conning indicates that AI and advanced technologies, such as artificial intelligence and underwriting software, are being prioritized by C-suite executives in the insurance industry, with a focus on underwriting efficiency and risk assessment. This strategic deployment of AI is a critical factor in the growth of Managing General Agents (MGAs) and their ability to compete in a dynamic market.
Investments in technology, including AI and analytics, are helping insurance companies streamline operations, enhance distribution, and pursue complex opportunities that traditional insurers may overlook. This digital agility positions companies better to adapt to a more competitive environment, particularly in the fronting and MGA markets.
