GenAI adoption in insurance industry surges nearly 100% in 2025: Conning

By Mia MacGregor

June 25 - (The Insurer) - Adoption of Generative AI (GenAI) in the insurance industry has surged nearly 100% year-over-year in 2025, with 55% of respondents reporting early or full adoption, according to Conning's 3rd annual survey on AI and insurance technology.

Additionally, the report highlighted that 90% of respondents are in some stage of implementing GenAI, whether in pilot, early, or full adoption, in their business value chain.

The survey results also show that 34% of respondents have fully integrated AI into their business value chain, marking a 400% increase from the 2024 survey.

In addition to the significant growth in full AI adoption, 89% of respondents noted that they are in some stage of meaningfully incorporating AI into their workflows, representing a 12-percentage point increase from 2024.

The survey also found a notable surge in the early and full adoption of large language models, which increased from 18% to 63% within 12 months.

Respondents also reported a 74% adoption rate of machine learning and predictive analytics, indicating full integration into the industry's core processes, according to Conning.

In sales and underwriting, machine learning and predictive analytics (ML/PA) are the most mature and adopted technologies, while GenAI shows great promise for future development, with high levels of pilot and early adoption, the report noted.

For operations and claims, both ML/PA and speech recognition are equally mature and adopted, with similar usage profiles at nearly 50% full adoption.

In risk control and pricing, there is a mix of responses, with many indicating "conceptualizing" (no deployment) at relatively high levels, except for ML/PA.

In shared services, the report noted high levels of engagement in the early or full adoption stages for more mature AI technologies, with both ML/PA and speech recognition showing equal levels of full adoption.

Manu Mazumdar, head of data analytics and insurance technology, insurance research at Conning and author of the report, told The Insurer that generative AI is in the spotlight among insurers.

"This is the third year we've conducted this study, and the biggest standout finding this year is the rapid growth of generative AI and its usage across the entire value chain," he noted.

"From negligible numbers in the 2024 survey, we now see 55% of respondents in either early or full adoption of generative AI in 2025, which has truly taken off."

Mazumdar explained that among the four technologies examined - machine learning and predictive analytics, large language models, speech recognition, and generative AI - there has been significant maturation in the older technologies.

"In general, predictive analytics and machine learning, large language models, and speech recognition have matured significantly. So generative AI is the technology du jour, and it has taken off like a rocket ship," he added.