Scaling AI in P&C Insurance: Moving from Learning to Action

P&C insurers are shifting their focus from understanding AI to operationalizing it, with scaling initiatives and data governance now taking center stage, according to Celent’s 2025 Top Tech Trends Previsory: P&C Insurance Report. Based on a combination of databases, surveys, interviews, and public data*, the report highlights a significant change in the types of questions insurers are asking. Previously, questions were largely educational, such as:

• What is GenAI, and how does it differ from other types of AI?
• What are my peers doing with GenAI and other AI technologies?
• What use cases should I experiment with?

In 2025, however, P&C insurers are moving toward operational questions, such as:

• How do I prepare for upcoming regulations and ensure my AI solutions are auditable and explainable?
• How can I ensure responsible and ethical use of GenAI and other AI tools?
• How do I scale GenAI use cases effectively?

This shift from educational to operational questions reflects the growing need for insurers to move beyond exploration. However, scaling AI effectively requires more than just enthusiasm—it demands a strong focus on responsible AI principles, robust data governance, and a solid technical and organizational foundation to ensure both compliance and ethical use of these transformative technologies.

Following responsible AI principles is essential for ensuring compliance and ethical use of both generative and traditional AI technologies. As AI regulation evolves, insurers face critical challenges in accountability, transparency, and data security. A strong governance framework is key, requiring robust policies, defined responsibilities, and secure vendor agreements to mitigate risks like bias, privacy breaches, and security vulnerabilities​.

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To scale AI effectively, insurers must establish solid technical and organizational foundations, particularly around data. This includes implementing a modern data infrastructure to support AI applications and ensuring data quality and security through expanded governance frameworks. Responsible data management is no longer optional—it is the backbone of leveraging AI for transformative efficiency while maintaining regulatory and ethical standards​.

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This evolution in focus underscores the pressing need for insurers to adopt practical strategies that not only address the challenges of scaling AI but also leverage external expertise to enhance their capabilities. 

“The challenge for insurers is that in order to meet growth objectives by leveraging digitalization, they also must make major investments in data management and governance. The swell of excitement around generative AI promises levels of automated decisioning never before seen in the industry,” according to the authors of the Celent Report.

Celent suggests that outsourcing certain functions to specialized service providers is an effective way for insurers to stay ahead. This approach allows insurers to concentrate on their core strengths while leveraging the expertise and resources offered by these providers.

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“While getting arms around that particular technology [GenAI] from a compliance and use case perspective is difficult, doing the work on data and system architecture to support it will help insurers achieve their goals to grow efficiently and set up for the next several decades of business,” said the authors of the report. 

As insurers look toward the future, the integration of advanced technologies like generative AI represents more than just an operational enhancement—it signifies a paradigm shift in how the insurance industry approaches growth, efficiency, and decision-making. By embracing AI responsibly and building the necessary technical and organizational foundations, insurers can position themselves as leaders in a rapidly evolving landscape, ensuring long-term success and innovation for decades to come.

“With claims costs escalating and seasoned adjusters an increasingly rare commodity, leveraging AI in the claims process is important for achieving the operational efficiency insurers need so they can focus on strategic growth while ensuring compliance and transparency,” said Nathan Golia, Senior Analyst on Celent’s North American P&C Research team.

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*Celent gathers its research from a combination of industry expertise, an extensive network of contacts, its VendorMatch database, client RFIs, surveys, interviews, and public data, all of which are carefully referenced to ensure accuracy and objectivity.