2025 Best Practices Study

Overview The release of OpenAI’s ChatGPT in November 2022 marked a pivotal shift in how artificial intelligence is perceived and utilized, especially within insurance brokerages and agencies. Generative AI now presents both a disruptive threat and a compelling opportunity to automate workflows, enhance customer engagement, and streamline operations. Generative AI is a branch of artificial intelligence focused on products capable of producing original content or making decisions based on the data it has been trained on. While Traditional AI is designed to analyze existing data and provide responses rooted in that information, generative AI can generate entirely new outputs derived from the same data. The real value lies in how organizations implement and weave AI into their culture and daily processes. As Roy Amara’s adage reminds us, the impact of technology is often overestimated in the short term and underestimated over time, making it crucial for brokerages to understand where AI fits into their overall technology adoption journey. One Best Practices agency recently implemented an AI platform tailored for producers and account teams. By mapping out key workflows, the agency identified four primary areas where AI could enhance efficiency: Loss Run Analysis, Coverage Analysis, Statement of Value (SOV) Comparison, and an Ask Anything Agent feature. The platform’s adoption has led to measurable benefits, with staff saving an average of 7.5 hours per week and the agency achieving a 244% return on investment.

In the 2025 Best Practices Study , firms were asked whether they had invested in Generative AI. As expected, firms in the largest two revenue categories led the way with 60% of firms $25 100M and 84.2% of firms over $100M answering yes. These firms are leveraging their scale and complexity to build AI into their workflows, but as AI solutions become more prevalent and integrated with legacy AMS systems, there are opportunities for firms of all sizes to implement AI soon.

% of 2025 Best Practices Firms who invested in AI

84.2%

60.0%

22.0% 22.0% 23.3% 25.0%

11.5%

<$1.25M $1.25 2.5M

$2.5 5M

$5 10M

$10 25M

$25 100M

>$100M

AI Use Cases & Transformation Strategy As Jon Kelly, CEO of Modern Metric, notes, “AI is only useful when it is in context and on a platform.” Generative AI excels at structuring unstructured data and supporting tasks that benefit from partial automation, with humans providing final review. However, it should augment, not replace, human expertise.

Customer-Facing Applications

Generative AI is revolutionizing customer-facing solutions for insurance brokerages by streamlining client interactions, personalizing services, and improving satisfaction. AI-powered chatbots efficiently handle routine inquiries and claims, while automating intake forms and generating tailored coverage summaries. Agentic tools also help brokers quickly summarize documents and present clear advice. Additionally, AI enhances onboarding by providing interactive guides, creating a more responsive and engaging client experience that drives loyalty and sets new standards in the industry.

Generative AI: Transforming Insurance Practices

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