Insurers broaden AI use beyond underwriting in Q3 2025

The industry saw higher AI adoption rates in customer service.

Artificial intelligence (AI) adoption in the insurance industry is broadening beyond underwriting and risk profiling, as 45.8% of respondents still consider underwriting and risk profiling as the most positively impacted area by AI. 

However, this figure is down 9.6 percentage points compared to Q3 2023, suggesting that other parts of the insurance value chain are gaining traction, according to a recent GlobalData poll conducted via Verdict Media platforms in the third quarter (Q3 2025).

Claims management was cited by 20.3% of respondents, a slight decline of 1.4 percentage points. 

Customer service saw a significant increase, rising 6.2 percentage points to 17.6%. Product development more than tripled, increasing from 1.9% to 7.2% over the same period.

Charlie Hutcherson, Associate Insurance analyst at GlobalData, said the shift reflects a more diversified AI strategy: “The results indicate that insurers are expanding their AI use cases across the value chain. Whilst underwriting innovation has slowed due to challenges around regulation, data quality, and fairness in risk models, other areas—particularly customer service—have gained traction,”

Hutcherson noted that insurers aiming to stay competitive must adopt a comprehensive approach to AI implementation. 

“To stay ahead, insurers must take a holistic view of AI deployment across the value chain. That means not just focusing on efficiency, but also ensuring fairness, transparency, and compliance—particularly as regulation tightens. Those who can strike this balance will be best positioned to build long-term trust and value,”

The Q3 2025 poll gathered 153 responses, down from 175 responses in Q3 2023.