AI is a buzzword in virtually every industry lately, including insurance. We’re still in the early innings, but it is on everyone’s minds as we continue to think of ways to streamline and better connect across the industry. In a recent interview, Ivans CEO Reid Holzworth sat in the hot seat with Business Insurance Editor Gavin Souter to share his thoughts on AI’s impact on insurance so far and where he sees it going.

Check out some of Reid’s answers from this interview for his early outlook on AI as we head into 2025 and beyond.

How has AI changed insurance distribution so far?

Reid: I wouldn’t say it’s changed much yet. I think it has the ability to change a lot of things and really streamline. We’re seeing tons of companies pop up in this space but haven’t seen it really transforming things yet, but it’s coming. The writing is on the wall. Especially on the commercial side of business with the complex risks. That could really help.

What is holding it back?

Reid: I think it comes down to priorities of implementing these things on the entire stack. It’s not simple, and it takes a long time. Carriers have a lot of priorities, and it’s hard to bring these systems in. Additionally, it can get very costly very quickly. I think there are many people out there who want to do it, and when they start ramping out, the cost is high. The cost of the models is going down, so that’s helping, but it keeps ramping up. I think it’s about finding the value for that cost and determining what it will take to implement it into our overall stack.

How do you see things changing this year and beyond?

Reid: I think we’re going to start to see AI positively affect the overall flow of commercial lines insurance. This doesn’t mean carriers and agencies are losing their jobs, but we’re going to see these tools implemented to streamline the overall flow.

What processes do you think will be most useful for AI assistance?

Reid: What I see most and most interesting is all the really complex stuff like consuming documents, moving data and making decisions based on that. This can take days, weeks and months. A carrier said this the other day: when you think about the size of risk, you can argue that you can simplify high touch to lower touch and maybe lower could even go no touch. That’s a big impact. We’re going to start to see this collaboration layer happen.

Moving Into the Next Generation of Insurance

Want to hear all of Reid’s early thoughts about AI’s impact on insurance now and into the future? Check out the full Business Insurance interview. At Ivans and our family of brands, we are staying on top of the latest trends and working to make our products ready for the next generation of insurance. Reach out to us if you’re interested in ways to streamline and automate your insurance and digital connectivity workflows.