The Future of Insurance: the Transformative Journey with Artificial Intelligence

A delegation from the Swiss InsurTech Hub (SIH) attended Insurtech Insights 2025 in London on 19 March 2025. With over 6,000 participants, 400 speakers and 20,000 meetings, the conference was hard to beat. thebrokernews had the opportunity to attend the opening keynote: ‘Forget Everything You Know About Insurance: How AI and Automation Are Changing the Game’ with Daniel Schreiber, CEO and Co-Founder of Lemonade.

The journey began with our closest relatives, the bonobos and chimpanzees – whose behaviour provides important clues that the concept of the risk pool is deeply ingrained in our genes. These behaviours, such as reciprocity and sharing of resources, are also found in prehistoric humans. It was only with the agricultural revolution about 4,000 years ago that some form of insurance emerged in Babylonia. The Codex Hammurapi, for example, regulated loans for trade purposes and allowed premiums to be charged in exchange for debt relief if ships were lost at sea.

Over the centuries, spurred on by revolutionary phases such as the commercial revolution in the 14th century, the first insurance contracts in their present form have emerged. The challenges and social criticism of insurers at that time are still similar today. For two decades now, the Urban Dictionary has defined insurance as ‘a business that promises to pay later for something that never happens’. In this respect, little has changed at its core.

The AI revolution: a new era for the insurance industry

Nevertheless, a new revolution is now taking place in the insurance industry – the AI revolution. Traditional insurance models, which are based on decades of non-transparent structures, are facing the challenge of whether they need to adapt their business models or fall inevitably behind. This development is characterised above all by the truly structural and strategic advantages of InsurTechs.

Agility through technology: the advantages of Insurtechs

The clear advantage that home contents and personal liability insurers such as Lemonade have is their agile, AI-based structure. Not only are their systems able to collect and analyse enormous amounts of data, they can also operate in real time to provide optimal customer experiences. Lemonade is moving away from the outdated, fragmented IT systems used by large providers such as Geico, for example. Instead, it has developed a proprietary platform that enables the company to capture valuable insights and data at every point of customer interaction.

Track record of AI: cost reduction and customer satisfaction

A look at the track record of AI use shows that its implementations have not only increased customer satisfaction; they have also reduced costs structurally and sustainably. Every time human interactions are replaced by AI, Lemonade’s customers‘ satisfaction increases. The power of AI and automation in the industry optimises not only costs but also the customer experience.

The way forward: the need for a change in thinking

Another key aspect to consider is the ability of insurtechs to price risks more accurately while reducing costs. This enables them to remain more competitive and increase their market share. However, this strategy also requires a change in thinking – the culture within existing insurance companies must be one that is willing to take risks and adapt to new technology.

A future-oriented approach and cultural transformation

In conclusion, it is important to emphasise that the success of this transformation depends on the willingness to understand AI as an integral part of business strategies and not just as another tool. The future belongs to the companies that boldly and steadfastly embrace change – those that help bridge the gap between technology and humanity, ushering in a new era in insurance.

Binci Heeb

Also read: The future of the insurance industry: a look at five innovative insurtechs