AI and Precision Medicine: How Insurers Can Accelerate the Shift

Everyone speaks about AI and the future of precision medicine today. Only a few years back, we thought this was a topic for a sci-fi movie.

I love taking care of my health, and I am a geek when it comes to wearables, scores, measuring training volume and load, sleep – you name it. But AI does much more than provide an individual score.

In this article, we look at the impact of AI on precision medicine and the role of insurance in accelerating its time to market.

The Rise of AI in Precision Medicine

For decades, medicine has largely followed a one-size-fits-all approach – standardised treatments based on population averages rather than individual differences. But with advancements in artificial intelligence (AI) and precision medicine, healthcare is shifting towards highly personalised therapies. 

That means we will finally understand why one puts on weight from breathing, while their best friend eats junk food three times a day and keeps the model size. And more importantly, we would treat each person according to their genetics, lifestyle, and preferences.

AI is already reshaping diagnostics, drug development, and treatment planning in ways we could not even imagine a few years ago. Let`s quickly look at some of the most powerful use cases.

AI-Powered Diagnostics

AI can analyse vast amounts of patient data – from genetic profiles to real-time biometrics – identifying diseases earlier and more accurately than traditional methods. Algorithms detect cancers, rare genetic disorders, and cardiovascular conditions at pre-symptomatic stages, giving patients a critical head start in treatment. We do not necessarily replace doctors with AI, but rather augment their capabilities of diagnostics and treatment.

Personalised Treatments 

Precision medicine is no longer about trial and error. AI helps match patients to the most effective treatments based on their genetic makeup and disease characteristics, reducing side effects and improving success rates. AI-driven simulations even allow virtual drug testing on digital twins, computerised models of individual patients.

Revolutionizing Drug Development

AI accelerates pharmaceutical research by predicting which compounds will likely succeed in human trials. This significantly reduces development time and costs, bringing breakthrough therapies to patients faster.

Predictive and Preventive Healthcare

AI-driven wearables, continuous monitoring systems, and predictive analytics identify early warning signs of disease. Our health is significantly influenced by our lifestyle, access to care and social determinants. However, this data is typically outside the medical system. According to 

Sure, we all know that technology is not fully there – I am the first to admit that I was deeply annoyed by the Oura ring stress detection feature. That is still an example of how not to expand your product – they looked at my heart rate only and told me I was under stress while working out. Sure, but that is not the stress I wanted to avoid.

Nevertheless, AI progresses and will soon allow us to detect and receive treatments before conditions escalate. This means we will be moving from treating illness to maintaining health.

Medicine advances, but the question is, who will ensure widespread access to these technologies? This is where insurers come in.

How Insurers Can Drive the Adoption of Precision Medicine

Integrating AI and precision medicine into healthcare is inevitable, but without insurance backing, it risks becoming an elite privilege rather than a healthcare revolution for all.

Insurance has a noble purpose and is the backbone of inclusion in the healthcare system. Insurers must evolve from passive payers to proactive enablers of AI-driven healthcare. Here’s how:

Cover AI-Powered Diagnostics and Precision Treatments

Traditional insurance models reimburse treatments based on historical data rather than individualised effectiveness. Insurers must expand coverage to include AI-driven diagnostics, genetic testing, and precision therapies. Otherwise, cost will be a barrier to accessing personalised care. And I am not sure how many times I have said it, but insurers have a moral obligation to help humanity’s well-being.

Shift from Reactive to Preventive Models 

Early on in my career, I developed a Critical Illness cover. Critical Illness is a cruel product. It symbolises what is wrong with our industry – waiting for a patient to reach a terminal stage of illness to pay, instead of helping them with early detection and treatment. No need to mention that I would never sell or develop such a product.

Insurers primarily pay for treatment after disease progression, leading to skyrocketing healthcare costs. AI allows for early disease detection and prevention, which should be incentivised through lower premiums, personalised wellness programs, and proactive care funding.

University Hospital in Zurich is using AI to detect and treat tumours. The future is here, and we need to give people access to it.

Embrace Dynamic, Real-Time Underwriting 

Current underwriting relies on static factors like age and medical history. With AI and continuous health monitoring, insurers can adjust risk models dynamically. First, this would offer fair pricing based on real-time health indicators. Second (and probably most importantly), they could incentivise a healthier behaviour – the same as sports and diet apps offer today.

However, given the debates on information asymmetry for health insurers and regulation on discrimination, it is worth mentioning that insurance cannot do wonders if access to specific information is not allowed. Our industry has a noble purpose, but we cannot offer advanced therapies without granular data for underwriting. 

Partner with AI and Healthcare Innovators

To accelerate adoption, insurers must collaborate with AI startups, biotech firms, and healthcare providers. We cannot develop solutions in an ivory tower; collaboration and systems thinking are the secret. Sometimes, innovation happens at the edges, not in the middle of a big corporation. Insurers that neglect the start-up scene are missing out on innovation.

We must integrate predictive analytics and personalised treatment plans into standard insurance offerings. Co-investing in AI-driven healthcare solutions will reduce long-term claims and improve patient outcomes.

Advocate for Regulatory Changes to Support AI-Based Precision Medicine 

Many healthcare regulations still favor traditional, standardised treatments. Insurers must work alongside governments and medical institutions to reshape policies that enable AI-powered healthcare to be reimbursed and scaled efficiently.

The Bottom Line: Insurers Must Lead, Not Follow

AI and precision medicine are not the future – they are already here. The question is not whether they will transform healthcare but how quickly insurers will help make them widely accessible.

As an industry, we have a moral imperative to work for humanity’s well-being. Not waiting for patients to achieve the terminal stage but helping them live better.

Insurers that adapt quickly will reduce costs, improve patient outcomes, and redefine their role in global health. 

Those who resist change risk being left behind in a world where personalised, AI-driven medicine becomes the new standard. The Kodak moment of insurance.

Insurance is no longer just about paying claims. It is about enabling the next generation of healthcare. 

Mirela Dimofte

Read also: Medical advances in 2025: Impact on Health Insurance