Aflac, PURE, Liberty Mutual, Cognizant
Emily Dardis
The future of insurance may look a lot like The Wizard of Oz. Customers see the lights, and magic, but – what most companies hope is — not the machinery behind the curtain. As artificial intelligence becomes more embedded in insurance, the goal is not to make technology the star; the goal is to make the customer experience faster, more seamless, and more human.
AI will not replace the human side of insurance. Instead, the winners will be companies that use AI behind the scenes while keeping people, judgment, and trust at the center. Here are the three messages all industry executives should understand, as insurance impacts practically every vertical.
1. Insurance Must Move from Reactive to Preventive
For years, insurance has largely been reactive. Something happens, a claim is filed, and the company responds. But Martin Leitch, CEO of PURE Insurance, a specialty P&C insurer serving high net worth families, believes the industry’s future depends on becoming far more proactive. “One of the big trends we’re focused on is moving the industry from being very reactive—you show up when the consumer needs you—to a proactive partnership model. If you get prevention and mitigation right, losses become less frequent and less severe, enabling more competitive premiums over time. That’s the outcome we’re working toward.”
Being a state-regulated industry also presents unique constraints. Hamid Mirza, President US Retail Markets, Liberty Mutual, explains, “As volatility continues to reshape the homeowners market, success depends on precise risk understanding and the flexibility to deploy the right tools where they matter most. We’re building a differentiated toolkit to compete and win market by market, while transforming how we operate to deliver stronger outcomes for our customers and our business.”
Virgil Miller, President of Aflac, shares the same prevention mindset to healthcare, “If everyone can get on board with preventive care and getting a diagnosis earlier, that can help drive down overall healthcare costs.” Miller wants Aflac to “be there when you need us most” by helping close gaps for consumers facing rising out-of-pocket expenses.
2. AI will Improve the Experience, not Remove the Human
AI will drive significant cost and efficiency improvements. But, while we can’t see the man behind the curtain, it is essential that humans are in fact behind … steering the application of AI.
An expert in AI, Ajay Pandita, Head, Financial Services, Fintech and Insurance at Cognizant, emphasizes, “AI is definitely going to change the world. But there are certain functions and activities that humans must do.” He describes the ideal future as “human judgment and machine power” working together.
Miller agrees, especially when discussing claims. “AI can help expedite a claim, but what AI cannot do and should never do is deny a claim.”
In moments like a cancer diagnosis, Miller says, “You want to talk to a human being,” because compassion always is at the heart of the human and customer service connection.
Mirza focuses on how AI will change customer behavior: “Consumers have more choice than ever in how they choose to shop, and as some leverage AI to evaluate and compare carriers it will driver greater price transparency and raise the bar on the customer experience.” Mirza points to Liberty’s recently introduced conversational AI quoting app in ChatGPT as an example of adapting to changing consumer shopping preferences.
Leitch emphasizes AI’s role in supporting employees. “The real opportunity is giving employees better information and tools so they can provide more value to consumers.”
Pandita cautioned that companies are asking the wrong question when it comes to AI adoption. “Much of the conversation today remains focused on what we can automate with AI. That is not the right starting point. You have to look at the entire process and ask how it should be fundamentally redefined. The most effective AI builders in insurance are thinking about customer experience, underwriting, and claims end to end, not simply where they can reduce costs. And there will always be a role for human judgment that the machine cannot replace. When you bring those two together responsibly, that is where you see the real outcomes.”
3. The Future Belongs to Leaders Who Build Trust
Even with so much truth and hype about AI, winning in business comes down to strategy, leadership, and trust.
Mirza believes leadership requires reading the moment. “In high-stakes, uncertain situations, your job is to step in, be decisive, and absorb the uncertainty so your organization can move forward quickly. But in calmer times, the best thing you can do is get out of the way and let your team make the best decisions. And that only works if you’ve built an environment where people at every level from the front lines to senior leadership, feel not just empowered but genuinely expected to speak their minds. That’s how you get an organization to be in service of the best answer.”
Miller ties leadership directly to culture. “At the end of the day, everything we do is about our people. “First you focus on and do good with what you’ve been given, then make it better, and finally, be bold. And my team brings everything back to a set of core principles to serve the customer fairly and efficiently. All of employees and sales associates use their north star to make all business decisions.”
Leitch showed what that looks like in service, as their customer retention rate is 96%. PURE’s mission, he says, is “to create an experience so compelling that our members never want to leave.” Monthly company-wide town hall meetings always include stories of remarkable service from around the organization.
Summary
Ultimately AI may create many new dramatic elements, but insurance is still about people. The best companies will use AI hidden behind the curtain, but driven by humans, to make things faster and smarter while ensuring customers still feel seen and completely protected. And AI will actually advance us — like in The Wizard of Oz — from a black and white world into a world of emblazoned color!
