AI is everywhere in Insurance. The real race has just begun

§ 01 Executive Snapshot

• What: Earnix's 2026 Insurance Trends Report highlights the integration and challenges of AI in insurance.
• Who: Earnix, 400 global insurance executives surveyed.
• Why it matters: The report underscores the gap between AI adoption and its operational impact, emphasizing the need for connected capabilities in decision-making.

§ 02 Key Developments

• 81% of insurance executives report AI is integrated into workflows across most or some business functions, a significant increase from prior years.
• Only 23% of insurers currently use AI for claims processing, 18% for policy issuance, and 15% for predicting churn.
• 92% of insurers conduct formal AI governance reviews, but fewer than one in three executives find them sufficient for regulatory demands.

§ 03 Strategic Context

• The insurance industry is transitioning from AI readiness to AI integration, with executives now focusing on meaningful applications that enhance business value and customer satisfaction.
• Regulatory readiness is becoming a key competitive advantage, as insurers face varied compliance landscapes across regions, impacting their operational strategies.

§ 04 Strategic Implications

• Immediate consequence: Insurers that effectively integrate AI into their operations can expect a competitive edge, especially in customer engagement and operational efficiency.
• Long-term implication: Companies that build regulatory trust through robust AI governance will likely strengthen their relationships with customers and regulators, enhancing market position.

§ 05 Risks & Constraints

• Potential risk: Data quality issues remain a significant barrier to effective AI adoption, with 83% of executives concerned about the accuracy of training data.
• Potential risk: The fragmented regulatory environment may hinder the ability of insurers to implement AI uniformly across their operations, affecting overall efficiency.

§ 06 Watchlist / Forward Signals

• Forward signal: The next two years will reveal how quickly insurers can scale AI adoption and governance practices to meet evolving regulatory requirements.
• Forward signal: Monitoring the percentage of insurers delivering personalized experiences at scale will indicate the industry's readiness to meet changing consumer expectations.