- P&C insurers are embedding AI into pricing, risk selection, claims triage, and settlement workflows without a comprehensive inventory of decision points, ownership, or downstream impact.
- Leaders lack a standardized method to quantify AI decision risk across financial impact, customer harm, regulatory scrutiny, model drift, and reversibility.
- Insurers need clear boundaries for where AI can inform, recommend, act within guardrails, or remain under human oversight.
- High-impact underwriting and claims decisions require stronger controls, documentation, auditability, and escalation than routine workflow automation.
Our Advice
Critical Insight
- AI scaling breaks down when decision risk, AI authority, control rigor, and operational readiness are not governed as an integrated system.
- AI governance in P&C requires autonomy calibration before scale. Insurers must define where AI can inform, recommend, or act across underwriting and claims.
- Governance should follow the insurance decision AI shapes, not just the model or tool being deployed.
Impact and Result
- Establish a decision-level P&C AI governance foundation for underwriting and claims.
- Inventory and score AI-enabled dec...