The State of AI in P&C Insurance report from ReSource Pro Insights offers one of the most comprehensive examinations of how artificial intelligence is reshaping the property and casualty insurance landscape. The research goes beyond surface-level trends to explain how carriers, MGAs, and retail agencies are adopting AI to streamline operations, improve accuracy, strengthen customer relationships, and unlock new avenues for growth. It also highlights the technologies that are moving from experimentation into mainstream deployment, and provides a forward-looking perspective on how AI will influence underwriting, claims, distribution, and customer experience over the next decade.
Challenge
Insurance organizations today are navigating an environment defined by rising complexity, shrinking margins, and rapidly evolving customer expectations. The shift toward digital-first engagement has intensified the need for speed, accuracy, and data-driven decision-making. AI sits at the center of this transformation, but adopting it is not without challenges:
Balancing automation with human expertise: Carriers and agencies must introduce AI while ensuring that experienced underwriters, claims specialists, and agents remain central to decisions requiring judgment and nuance.
Increasing operational complexity: Underwriting, claims, compliance, and distribution all involve vast amounts of data, manual steps, and legacy systems—making modernization both essential and difficult.
Talent shortages: The industry faces a widening gap in data science, digital tools, analytics, and risk modeling skills.
Rising exposure to fraud and cyber threats: As digital interactions grow, so do vulnerabilities.
Evolving customer expectations: Consumers expect personalization, fast responses, transparency, and seamless digital interactions.
Solution
The report details how different segments of the insurance ecosystem are using AI to solve these challenges today while preparing for the demands of tomorrow:
Retail Agencies
AI is enhancing customer acquisition, lead scoring, personalization, policy servicing, and compliance review. It allows agencies to deepen relationships and respond faster to client needs.MGAs
MGAs are leveraging AI to build smarter underwriting frameworks, automate risk assessments, forecast emerging exposures, and quickly launch new niche or specialty products.Carriers
Carriers are deploying AI to automate submissions, improve pricing adequacy through dynamic models, streamline claims triage, detect fraud earlier, and reduce operational costs across underwriting and claims.Cross-Sector
AI governance, transparency, and human oversight remain essential to building trust and ensuring models remain fair, accurate, and compliant.
Measurable Outcomes
Organizations that integrate AI into their operations are experiencing clear and measurable performance improvements:
Significant reductions in submission processing times
Enhanced underwriting accuracy supported by predictive analytics
Reduction of fraud exposure through anomaly detection and behavioral modeling
Improved retention rates through hyper-personalized engagement and service
Greater consistency and quality in agent and broker interactions via AI copilots
Strategic Benefits
Beyond operational efficiency, AI offers meaningful strategic advantages that position insurers for long-term competitiveness:
Ability to create dynamic and adaptive insurance products aligned with emerging risks
“Smart automation” that learns from interactions and improves over time
Empowered agents, brokers, and underwriters equipped with real-time data insights
New revenue pathways from advanced analytics and data-driven services
Differentiated customer experiences that lead to stronger loyalty and higher lifetime value
Audience
This research provides value for:
Retail Agencies seeking operational efficiency and stronger customer engagement
MGAs driving product innovation and specialized pricing strategies
Carriers pursuing modernization, scalability, and reduced loss ratios
Wholesale partners exploring AI-enabled collaboration and risk-sharing opportunities
Final Thought
AI is no longer an emerging concept—it is an active force already reshaping the insurance value chain. Organizations that invest now in automation, augmentation, and responsible AI governance will be positioned to lead the next era of P&C insurance, where intelligence, speed, and adaptability define market winners.
