As technology continues to reshape the insurance and reinsurance industry, companies must adapt by differentiating with AI, navigating capital complexities and using it in all its forms, while reinventing distribution to meet the demands of today’s digital world, according to Frank Schepers, Global Leader ICT, and Sina Thieme, Senior Director, ICT at broker WTW.
Beginning with artificial intelligence (AI), which has expanded rapidly across the re/insurance industry in recent years, the authors highlight that the technology is no longer a differentiator, but instead has now become a baseline.
“The real edge now lies in how insurers apply AI: embedding it into underwriting, claims, and customer engagement in ways that are proprietary, explainable, and scalable,” Schepers and Thieme explain.
Sina Thieme of WTW will join a panel discussion titled “Modernisation and liquidity needs of a growing ILS market” at our upcoming Artemis London 2025 conference: View the agenda and register here to attend the event.
Schepers also suggests that combining AI with deep domain expertise and unique data assets is key, explaining that insurers must also navigate the ethical and regulatory implications of AI.
“As AI becomes more embedded in underwriting, pricing, and claims, scrutiny over how these systems make decisions is intensifying,” he explains.
An important factor that Schepers also pinpoints, is how the value of AI lies not just in automation, but in intelligent, responsible application.
This means building explainable models, auditing outcomes for bias, and ensuring human oversight in high-impact decisions.
“For large insurers, building proprietary models trained on their own data is becoming a key strategic asset. But not all insurers will have the scale or resources to do this alone. Those without the financial or data assets may need to buy, share, or co-invest. Turning unstructured data into structured insights—especially in claims, pricing, and underwriting—will be a priority. Re-thinking core processes around the possibilities of agentic AI could unlock a new level of value creation,” the article reads.
Adding more to this, Schepers and Thieme state that while technology continues to transform the distribution landscape, many insurers remain stuck in “digitized” versions of analogue processes.
“The next frontier is intelligent distribution: using AI, behavioural data, and omnichannel platforms to deliver personalized, seamless experiences. In emerging markets, mobile-first platforms are unlocking new customer segments. In mature markets, embedded insurance and API-driven ecosystems are redefining how and where insurance is sold,” the pair explain.
The same message applies to the insurance-linked securities (ILS) market as well.
Like the insurance and reinsurance sectors, it thrives on speed, trust, and risk insight. Failing to embrace AI could leave it trapped in the older insurance cycle, which is slower, heavily model-bound, and reliant on manual data processing.
In addition, the authors also emphasised how technology provides a path forward for developing strategies for underinsured risks.
“The protection gap—between insured and total economic losses—remains stubbornly wide. From climate change to cyber risk, many exposures remain underinsured or entirely uninsured.
“Technology offers a path forward. By using granular data and advanced analytics, insurers can better understand emerging risks and tailor products to underserved segments, reducing the need for an uncertainty premium and thus improving affordability,” the article reads.
Furthermore, Schepers and Thieme showcased how insurance-linked securities (ILS), private equity, and various alternative sources of capital are entering the market in larger numbers, drawn by uncorrelated returns and innovative risk transfer mechanisms.
“For traditional insurers, this means adapting to a multi-capital world. It’s no longer just about balance sheet strength—it’s about capital agility. Insurers must learn to partner with, compete against, and differentiate themselves from these new players.
“Ultimately, insurers must develop capital strategies that blend traditional and alternative sources, optimizing for flexibility, cost, and risk appetite,” the authors explain.
