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The majority of insurance executives are focused on accelerating AI transformation to improve financial and operational performance in 2025, according to a recent survey by Roots.

Eighty-two percent of respondents said AI is critical, the data showed, with results also indicating that insurers must upskill employee talent to meet their goals.

“Insurance executives recognize AI's transformative potential, and our survey shows they are prioritizing AI to enhance operational efficiency, lower costs and boost customer satisfaction,” said Chaz Perera, CEO and co-founder of Roots.

“Underwriting, claims management and IT leaders are committed to making AI a pillar of their future success, despite challenges in adoption and deployment,” he added. “The complexity of implementing AI underscores the need for strategic partnerships, external expertise and insurance-specific solutions to help guide insurers on accelerating the path to ROI.”

Other key survey takeaways…

  • Nearly 90% of insurance leaders express a positive opinion about employing AI, and 67% identify as "strongly in favor."
  • A gap between AI exploration and practical deployments exists, with over 90% of insurers actively exploring, testing or using AI capabilities.
  • Only 22% of insurers have successfully deployed AI solutions in production.
  • Top concerns to AI adoption include skills and resource constraints (52%) data challenges (40%) and regulatory challenges (36%).
  • Claims teams prioritize improving claims processing efficiency (72%), reducing claims cycle times (64%), and enhancing client satisfaction (45%) as their top three priorities for 2025.
  • Underwriting teams aim to focus on increasing premium growth (75%), increasing speed to quote (53%) and lowering loss ratios (43%) in 2025.
  • IT Operations teams are working to integrate AI (or scale) throughout the business (65%), reduce operational costs (48%) and modernize the tech stack (45%).

Meanwhile, insurers identified four essential success elements for AI initiatives in 2025 including AI accuracy at 71%, AI trained for insurance at 45%, speed to ROI at 43% and speed to production at 42%.

“Corporate leaders in the insurance industry are under increasing pressure to streamline operations, reduce costs, and improve efficiency while also staying ahead of the competition,” Roots said in the survey. “It’s clear that insurers have quickly recognized AI’s transformative potential—not just to reshape existing business models, but to create entirely new opportunities for growth.”

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