In 2025, the implementation of Generative AI is a certainty that has shifted the focus of conversations to the impact of AI and what it will mean for us. More specifically, how do we strike the right balance between AI and humans? It’s a question that the insurance industry will need to answer quickly in order to balance between AI and human strengths and apply intelligence in the best way possible.
The integration of generative AI
The benefits of generative AI are undeniable. As a tool, it allows insurers to be more productive while maintaining high-quality outcomes, increasing output without compromising on results.
The implementation of generative AI is also trending upwards. According to Gallagher Bassett’s The Carrier Perspective: 2025 Claims Insights, 47% of UK insurers now use generative AI for claims resolution, a seven-percentage point increase from 2024. The most popular applications of generative AI among UK insurers include automating routine tasks (80%), data analysis and reporting (69%), and fraud detection (67%).
Coupled with the increasing complexity of claims and customer demands for personalised services, generative AI has rendered traditional methods of processing claims less efficient, making it an essential tool for keeping up with evolving market demands.
The future for generative AI
As generative AI develops, it’s unlikely that its applications will stop at simple tasks such as streamlining administration processes. It is expected to expand into predictive analysis, more sophisticated fraud prevention mechanisms, and highly personalised customer experiences. Improved statistical modelling will enhance the insurer’s ability to anticipate challenges and optimise decision-making according to the shifting climate trends and changes to the regulatory landscape.
The future for talent
Despite its very promising future, generative AI cannot be the answer to all the challenges the insurance industry faces. Replacing human talent would be a critical misstep as customers continue to prefer human interaction, especially when there are complex claims or sensitive situations involved. This could make the tactless adoption of generative AI risky for a business’ reputation and customer relationships. While generative AI will go a long way to enhance the personalisation of customer interactions, human interactions remain crucial to the success and satisfaction of a claim’s outcome.
A shortsighted approach to generative AI can also restrict the development of the insurance industry’s future talent. We cannot overlook the important role that lower value claims play in upskilling talent and building the industry’s future.
Striking the balance
A strategic approach to adapting and developing new technology will be crucial for maintaining the balance and enabling businesses to benefit from generative AI without absorbing the negative impact.
Future proofing the insurance industry for generative AI integration includes:
- Proactive training: For businesses to remain agile, the learning, development, and upskilling of staff needs to be far more proactive. Without a proactive approach, training modules risk becoming obsolete by the time they are delivered to employees.
- Addressing digital literacy gaps: On top of technical understanding, a cultural shift is required to reframe generative AI in a way that enhances cooperation instead of promoting resistance and resentment. To facilitate this cultural shift, insurers need a greater understanding of generative AI, both its benefits and limitations. Education bridges the digital literacy gap and prevents uncertainty and misinformation.
At Gallagher Bassett, such processes sit at the core of our AI implementation strategy. We prioritise empowering our claims management teams with the right technology to deliver personalised, expert service that leads to greater outcomes for our clients. We foster a culture of continuous learning, by investing in career growth and development programmes that encourage longevity, workplace expertise and an environment that fosters self-starters and collective knowledge-building. Generative AI is no exception to these principles. As individual team members and departments adapt and learn to integrate new technology into their work, they create opportunities for learning and mentoring.
GB’s focus has been clear from the start: generative AI is a tool for maintaining high claimant and client satisfaction, not a replacement for human talent.
Read our free 2025 Claims Insights Whitepaper to learn more about the trends shaping the insurance industry, or reach out to our team to find out how we can help future-proof your business.
