Increase in AI adoption within the insurance industry - study finds
In the rapidly evolving world of insurance, the integration of Artificial Intelligence (AI) is becoming increasingly prevalent. This transition is the focus of the InsTech.ie 2025 AI in Insurance Report, a comprehensive study of AI adoption and deployment in the insurance industry.
The report reveals a significant surge in AI usage across critical insurance functions such as customer experience, risk modelling, real-time claims processing, and compliance automation. Around 80% of insurers are exploring or deploying AI solutions, and over 75% of insurtech companies have AI integrated into live products. This broad and deep adoption of AI technologies is aimed at streamlining operations and improving service.
A notable 90% of firms surveyed are planning to expand internationally, suggesting strong confidence in the scalability of AI-powered insurance solutions and the global ambition of firms operating in this space.
With rising AI integration, regulatory oversight is intensifying. The report emphasizes that emerging regulatory frameworks, particularly in Europe, will profoundly influence AI deployment. The EU’s upcoming AI Act, alongside the already active Digital Operational Resilience Act (DORA), will impose strict requirements around risk management, accountability, cybersecurity, and data governance for insurers using AI. These frameworks aim to ensure that AI is used responsibly and safely in insurance operations.
Barry Scannell, a partner at William Fry and a specialist in AI, copyright, IP, and technology law, notes that insurers integrating AI into their operations face increased regulatory scrutiny, particularly in Europe. Scannell also points out that DORA will have a significant influence on insurers' AI adoption, particularly in regards to operational resilience.
According to InsTech.ie CEO Gary Leyden, Ireland is uniquely positioned to lead globally in AI-driven insurance innovation due to its hosting of top global software companies, insurers, and a strong insurtech ecosystem. InsTech.ie has mapped 114 homegrown insurance companies in Ireland, and the top 10 software companies are located in Ireland, as stated by Leyden. Eleven of the top 15 global insurers are based in Ireland, further bolstering Ireland's potential to lead in this field.
The InsTech.ie 2025 AI in Insurance Report includes contributions and case studies from various practitioners in the insurance sector, providing valuable insights into real-world AI deployment across key insurance functions.
In summary, the InsTech.ie 2025 AI in Insurance Report highlights:
| Aspect | Key Findings | Implications | |-----------------------|------------------------------------------------------------------------|----------------------------------------------------------| | AI Adoption | 80%+ insurers deploying AI; widespread use in multiple insurance functions | Accelerates efficiency and innovation in insurance | | International Expansion| 90% firms planning global expansion | EU and global markets present growth opportunities | | Regulatory Scrutiny | Heightened oversight via EU AI Act & DORA | Necessitates robust risk, data, and compliance management | | Ireland’s Role | Positioned as a global AI-insurance hub | Leverages tech & insurtech ecosystem for leadership |
This convergence of growing AI use, international ambition, and increasing regulatory requirements underlines a transformative phase in insurance driven by AI, demanding both innovation and robust governance.
Inthe light of the InsTech.ie 2025 AI in Insurance Report, the banking-and-insurance sector is integrating technology, particularly artificial-intelligence (AI), into finance and insurance operations. This integration is not limited to specific functions such as customer experience, risk modelling, or compliance automation, but is being adopted by over 80% of insurers. Furthermore, the report suggests that the EU's upcoming AI Act and the Digital Operational Resilience Act (DORA) will significantly influence the deployment of AI, as these frameworks will impose strict requirements around risk management, accountability, cybersecurity, and data governance.
