Insurers are no longer content to simply invest in artificial intelligence (AI) for the sake of efficiency. According to a new report by Evident, a leading insurance research firm, insurers are now embedding AI technologies into their workflows with direct impacts on underwriting discipline and capital allocation.
The 2026 Evident AI Index reveals that insurers are using AI to optimize risk assessment and capital management, rather than simply automating routine tasks. This shift in strategy is expected to generate tangible business value for insurance companies beyond mere efficiency gains. By leveraging AI, insurers can reduce the complexity of underwriting processes and make more informed decisions about policyholder risk.
Christian Preece, Insurance Director at Evident, says that the company has witnessed a significant transformation in insurer approaches to AI. "For years, we've competed on AI ambition," he notes. "However, our research indicates that insurers are now using AI to drive core risk underwriting and capital allocation decisions." This shift towards a more nuanced approach to AI is likely to have far-reaching implications for the insurance industry as a whole, enabling companies to better manage risk and allocate capital in a more effective manner.