For years, AI in insurance has focused on doing the same things faster. But the real opportunity may be far greater. Innovation in Focus: Reimagining Risk in an AI-Driven World challenges conventional thinking and explores how AI can achieve growth, resilience, and relevance—not just increased efficiency.

Drawing on responses from IIS members and guided by leading global insurers, this report reveals why advanced data, human judgment, and strong AI governance are crucial to the operating model of the future.

• 87% of insurance organizations are pursuing Generative AI initiatives, yet only 25% have reached production-level deployment.
• Operational efficiency is the primary driver of AI adoption, with 53% of respondents prioritizing workflow optimization.
• AI investment remains modest, with budgets averaging 3.9% of total organizational spending, as many firms continue to rely on third-party large language models rather than proprietary solutions.