Product development gained 8.9 percentage points in GlobalData’s AI survey.
Insurers are expanding artificial intelligence (AI) beyond assessing risks and pricing policies as spending on the technology accelerates, raising questions about which applications will deliver the greatest returns.
“As AI capabilities mature, firms are looking beyond improving risk selection and towards enhancing customer engagement, accelerating product innovation, and supporting operational efficiency,” Sahil Haider, an insurance analyst at GlobalData Plc., said in a July report.
A GlobalData survey found that 34.4% of respondents expected underwriting and risk assessment to benefit most from AI, followed by customer service at 20.4%, claim management at 18.3%, product development at 16.1%, and marketing and distribution at 10.8%.
Underwriting remained the leading application, but its share fell 11.4 percentage points from July 2025. Product development posted the biggest gain, rising 8.9 percentage points.
Insurers are also using AI to process claims, detect fraud, answer customer enquiries, and develop insurance products.
The survey was conducted across Verdict Media websites from 15 April to 22 July 2026.
Spending is expected to accelerate. Fortune Business Insights Private Ltd. valued the global AI insurance market at $10.4b in 2025 and expects it to reach $13.5b this year and $154.4b by 2034, or annual growth of 35.7%.
The Asia-Pacific market was valued at $2.8b in 2025, with China accounting for $710m and India $580m. The report cited a regional growth rate of 42.2%.
Insurers across Asia are investing in automation and data analysis as digital services expand and smartphone use generates more customer information.
These investments can help insurers reach customers in markets where insurance ownership remains relatively low, according to the report.
Questions to ponder:
- Which insurance operations could generate the greatest returns from AI investment?
- How can insurers measure whether AI improves customer service and claim handling?
- What factors could affect the profitability of AI investments as spending increases?