Insurance Isn’t Going Anywhere, But It Won’t Look the Same Either
Misplaced Predictions and Misunderstood Strengths.
There has been a quiet fear circulating for years that insurance, as we know it, might become obsolete. That technology would disrupt it beyond recognition. That political pressure, shareholder impatience, or big tech platforms might finally erode its foundation. These predictions often stem from a misunderstanding of what insurance actually is.
Insurance isn’t a product. It’s a promise. A societal safety net. A stabilizer for economies, households, and entire industries. It is often invisible until it's needed, but indispensable when it is. And that’s why, even as the tools evolve and delivery mechanisms shift, the industry itself is here to stay.
The Enabling Role of Insurance.
What allows someone to drive a car, take out a mortgage, or send a container ship across an ocean? Trust. More specifically: trust that risk is shared, buffered, and, if needed, repaired. Insurance makes that trust operational. It’s what allows families to sleep at night despite illness, and what allows investors to fund innovation despite uncertainty.
In highly regulated markets like France, penetration is high: health insurance covers over 90% of the population. And yet, even in these contexts, gaps remain. Imagine a family facing a terminal illness. Medical costs may be covered. But what about converting a home to accommodate end-of-life care? What about lost income? Emotional strain? The reality is that even comprehensive systems can fall short in moments of profound human vulnerability.
This is where insurance must evolve. Not to sell more policies, but to deliver more value precisely when it matters most.
Why Tech Alone Won’t Fix Trust.
There is a persistent belief that the future of insurance lies in technology. That AI, automation, and digital experiences will finally modernize a legacy industry. To a degree, that belief is valid. But it is incomplete.
Technology is not a substitute for trust. It is a conduit.
Yes, AI will transform underwriting. Yes, automation will reduce administrative drag. Yes, data will enable hyper-personalization. But none of these matters if clients don’t feel understood.
Imagine a cancer diagnosis. Or a sudden death. In these moments, the expectation isn’t convenience. It’s humanity. And no chatbot or self-service app can replace the calm reassurance of someone who knows what to do, who understands the stakes, and who is equipped to act.
The industry’s opportunity is not just to digitize. It is to become more human by using technology to remove the noise, so that what’s left is presence.
AI: A Symbiosis, Not a Takeover.
Much has been said about the "Amazonification" of insurance, as though tech giants will swoop in and replace incumbents. That may sell headlines, but it ignores how regulation, risk, and capital actually work.
Insurance is not a tech product. It is a system of trust, compliance, and long-term solvency. It requires oversight, reserves, and governance. And these are not easily disrupted.
What we are seeing instead is a symbiosis. AI models are being integrated into underwriting engines. Generative AI is being explored for client communications and claims triage. Predictive analytics is shaping risk pooling and product design. But this is not an invasion. It is absorption.
Just as banks didn’t disappear when fintech emerged, they adapted, so too will insurers. The real winners will be those who understand how to blend legacy strengths with future-facing capabilities.
What AI Can and Cannot Do.
AI will:
Improve operational efficiency across claims, underwriting, and customer service.
Enable greater risk segmentation and more personalized pricing.
Surface new insights from unstructured data, enabling better prevention strategies.
Extend the service availability beyond office hours.
But AI will not:
Replace regulatory credibility.
Make complex emotional decisions during claim moments.
Solve the human perception of fairness, empathy, or presence.
And that’s the pivot: insurers who treat AI as a solution will lose ground. Insurers who treat AI as a strategic amplifier to become more human, more responsive, and more aligned will lead.
The Social Contract Is Shifting.
Insurance doesn’t operate in isolation. It exists within a national and global social contract. In many countries, state systems are fraying under demographic and fiscal pressure. Public pension plans are underfunded. Social security is strained. Governments increasingly lean on insurers to provide continuity, sustainability, and peace of mind.
This interdependence matters. When a country’s population doesn’t trust its healthcare, pension, or social safety nets, unrest grows. Insurance, quietly and reliably, helps uphold social cohesion. And in a geopolitical climate of volatility, that role becomes more, not less, critical.
Insurers that understand this dynamic will shift their role from product vendors to societal partners.
Rethinking Penetration and Relevance.
In markets with high insurance penetration, the challenge is no longer access. It is relevant. Clients are asking different questions:
What do I actually get from this policy when something goes wrong?
Will I be supported when I need it most?
Does my insurer understand my situation, or just my risk profile?
Overselling and underdelivering is a fast ways to erode trust. Travel insurance bundled with credit cards duplicates paid coverage. Critical illness riders that don’t consider post-treatment recovery. These are not just inefficiencies. They are violations of expectations.
True relevance requires three shifts:
Product simplification so clients understand what they have.
Claims empathy so that experiences feel human, not transactional.
Proactive advice so clients feel prepared, not abandoned.
Emerging Markets and the Next Generation of Growth.
Meanwhile, in high-growth economies, a new generation of insurers is emerging. These markets are younger, more digitally fluent, and less encumbered by legacy systems. Their growth will not just come from market size, but from fresh models of distribution, product design, and customer engagement.
These new players won’t look like traditional insurers. They may start as tech platforms, healthcare providers, or logistics firms. However, they will likely move into insurance because they already have a better understanding of the customer. And they will be regulated, integrated, and ultimately symbiotic with the global insurance ecosystem.
Incumbents in mature markets should not fear these entrants, but rather learn from them, especially in how they use data, onboard clients, and design journeys.
What Kind of Leadership Does This Require?
Navigating this future won’t be about having the best pitch deck or the largest IT budget. It will be about trust. And trust, in insurance, is built over time but lost in seconds.
The leaders who will thrive are not the loudest or most digitally fluent. They are the most aligned:
With regulators
With clients
With technology partners
With their own teams
These leaders will move between boardrooms and claims centers. They will listen more than they speak. They will ask uncomfortable questions about misalignment before performance. And they will know that what they’re building isn’t just margin, it’s confidence.
Conclusion: A Quiet but Essential Evolution.
Insurance isn’t disappearing. But its contours are changing. Its tools are evolving. Its expectations are rising. And its role in society is expanding.
The question isn’t whether AI will transform the industry. It already is.
The question is: who will use that transformation to serve people better, not just cheaper?
Because insurance is ultimately about one thing: trust, and trust doesn’t scale through code alone. It scales through integrity, intention, and intelligent design.
Those who lead with that in mind will be COVERED.
François Jacquemin
P.S.: Want to watch the video version of this article? Go to https://www.francoisjacquemin.com/covered/ai-in-insurance-a-symbiosis-of-mutual-growth