When people talk about the forces driving AI innovation, the spotlight usually falls on tech giants and research labs. These institutions may build the models and release the breakthroughs, but they’re not the only ones shaping the future of intelligent systems.
Executive Summary
As businesses explore ways to harness agentic AI, insurers can help drive AI innovation by offering them coverage to protect against various AI risks, suggests Xceedance's Chief Digital and AI Officer Brandon Nuttall. Here Nuttall provides insight on areas of AI that are ripe for insurance coverage as well as how insurers can break into the AI market. Editor's Note: Global tech research advisory firm Gartner ranked agentic AI as the top technology trend for 2025, describing agentic AI as systems that can autonomously plan and take actions to meet user-defined goals. Gartner Identifies the Top 10 Strategic Technology Trends for 2025. Other descriptions of "agentic AI" are available in these online sources: "What Is Agentic AI, and How Will It Change Work?" Harvard Business Review, Dec. 12, 2024 (subscription required) and "@ the World Economic Forum in Davos: What does responsible AI look like in the age of agentic AI?" (PwC podcast transcript)There’s another key player, often overlooked, that has a quiet yet critical role in accelerating innovation and adoption: insurance companies.
Across sectors, businesses are exploring ways to harness agentic AI. But many of these initiatives are focused on a single area or workflow. Fewer companies are adopting the technology at scale. Some cite risks such as algorithmic failure, model bias, regulatory uncertainty, and reputational harm.
That’s where insurance comes in. Insurers have the power to take many of the risks out of companies leveraging AI for innovation. De-risking AI involves designing insurance coverage solutions that address emerging AI exposures and pairing them with advisory services and governance insights. Insurance can do much more than protect against loss. It can be the foundation that enables safer AI adoption at scale for companies in all industries.
A History Fueling Innovation
Insurance has been a catalyst for change before. In the 17th and 18th centuries, insurance helped transform maritime trade. Before the formal insurance market emerged, financial losses from shipwrecks, piracy, and unpredictable weather could be catastrophic and occurred frequently enough to bankrupt merchants and trading companies. The rise of marine insurance in London pooled risk and offered financial protection. Marine insurers were then able to invest in larger fleets, explore new trade routes, and finance global commerce. In essence, insurance powered the rise of international trade, and eventually the modern global economy.
Today, insurers have a similar opportunity to shape the future, supporting the safe development of agentic AI. By transferring performance and algorithmic risks to insurers, businesses can pursue ambitious AI initiatives without fear of catastrophic losses driving broader adoption of autonomous systems.
