Industry Caution
Agentic AI and other advanced solutions are already creating value for underwriters, claims professionals, and other insurance experts. Still, many in the industry remain cautious about whether these tools can consistently deliver measurable business outcomes. Comments on AI-related articles in major insurance publications reflect that scepticism clearly. This caution is healthy, and insurers should address it directly before embedding AI deeply into core processes.
Licensing Reality
Insurance is a well-regulated industry. For instance, U.S. insurance is an extensively regulated, license-driven business. US state and some federal laws generally require insurance solicitation, selling, and negotiation to be handled by, or under the responsibility of, appropriately licensed producers. Many states also require licensure for property and casualty and workers’ compensation adjusting, with exemptions for certain insurer staff, attorneys, catastrophe adjusters, and routine life, health, annuity, and disability claims work. Even when insurers automate parts of sales and claims, regulators still expect a licensed or otherwise authorized human or entity to remain accountable.
Practical Way Forward
The most pragmatic and broadly acceptable approach is not “AI instead of people,” but “AI alongside people.” AI agents should support licensed professionals by improving speed, consistency, insight, and customer experience while keeping human accountability in place. Rather than pursuing sweeping AI-only process replacements, insurers are more likely to achieve durable success by using AI to augment human judgment, not sideline it.