The insurance industry is known for its complex processes and heavy regulations rather than being an early adopter of the latest technology. But that’s changing as insurance companies begin to outpace other industries when it comes to AI usage and automating workflows.

This transformation is causing a shift in the workforce, however, with a growing need for employees to develop new skills in AI fluency in order to augment their everyday tasks. So now, employees are seeking guidance, upskilling, and clear career pathways from their employers.

As insurance companies battle climate change, rising costs, and more demanding customer expectations, it’s vital to arm employees with the technology and skills needed for long-term success.

How Insurers Are Investing in AI Today

From customer service to the claims process, 97% of insurance companies plan to quickly invest in process and task automation. That’s well above the average for other industries across the globe, indicating that a race is on among insurers to streamline workflows and improve efficiency.

Workforce augmentation is also expected to be above average. By 2030, 41% of insurance tasks will likely involve human-machine collaboration. This will lead to an increased demand in AI-related skills, including literacy, cybersecurity, creative problem solving, adaptability, and customer-centric innovation.

Together, these human-AI capabilities can result in better customization for product recommendations and risk analysis, enabling insurers to deliver more personalized policies while also flagging potential risks. Customers receive a better experience and employees get the tools they need to make more informed decisions at a faster pace.

Explore the 2025 Education Index to discover how leading organizations are building a workforce ready for what’s next.

Top Roles Impacted by Augmentation and Automation

The upcoming industry shifts may seem technology-focused, but they also reveal what skills are needed for your workforce to thrive. 79% of employees feel the pressure to keep learning to stay competitive, but AI is accelerating job change faster than they can keep up. It’s important to understand the upcoming changes so that you can effectively prepare your employees to work alongside AI with confidence.

Many of today’s roles will still exist, but they’re going to look different as insurance companies continue to scale AI usage. Underwriters, for instance, will need to develop data-centric skills to complement their human expertise. AI can handle basic data analysis for the underwriter to review, while also taking care of administrative tasks, such as processing applications and inputting data.

However, entry level underwriting positions are experiencing a downturn as AI takes over certain elements of task automation. The U.S. Bureau of Labor Statistics expects a 3% decline in underwriter positions through 2034, and this number is likely offset by the need to replace many professionals on the verge of retirement.

While underwriting roles will look different, insurance companies are expected to have a growing need for data scientists and AI specialists. Not only can these roles help with risk assessment, they can also contribute to fraud detection, customer experience, claims processing, and more.

Preparing Your Workforce for an AI-Driven Future

AI capabilities and the impact on the insurance workforce may seem daunting, but 21% of employees want to know how AI will disrupt or transform their industry. Here’s how organizations can take steps now to stay ahead of the industry’s evolving needs, while also preparing your workforce for the changes to come.

Be Transparent with Employees

Concern about future job stability is high among insurance employees. Nearly 70% of actuaries and underwriters worry about being replaced by AI within five years. But many roles will be augmented by AI, not replaced by it.

It’s helpful to communicate with employees about your company’s future AI plans and how each role could be impacted. Unfortunately, 50% of employees report no employer AI training and 42% of employees are expected to learn AI on their own.

Offer guidance and resources on how they can professionally prepare for AI, particularly when it comes to offering employer-led training and certifications. And importantly, be transparent and share these opportunities. When employers offer training, 76% of employees use AI compared to just 25% when training isn’t offered.

Upskill Your Internal Talent Pool

Rethinking your education benefits is a must when balancing AI implementation with employee development. Traditionally, insurance companies may have offered benefits for certifications on specific products, leadership development, and industry designations. While many of those programs are still important, it’s time to think outside the box and offer new ways for employees to reskill and upskill.

Think data science training, predictive analytics, change management, and cybersecurity. These are emerging areas that don’t need an advanced degree. You can develop your teams from within to fill upcoming talent needs with in-demand skills.

And when it comes to AI, here are the most desired topics that employees are seeking:

• 39% of employees want to know how to use AI effectively in their current role
• 38% of employees want to know where AI can improve their day-to-day work
• 36% of employees want to know how to use AI tools to improve their everyday life
• 28% of employees want to know how to better evaluate AI output for accuracy, bias, or ethical concerns
• 24% of employees want to learn how to draft more effective prompts
• 21% of employees want to know how AI will disrupt or transform their industry
• 21% of employees seek to learn how to stay compliant with company privacy policies

Explore the 2025 Education Index for employer takeaways and AI adoption in the workplace.

Strive to Attract Younger Workers

In addition to upskilling your current workforce, you also need to implement policies that attract younger workers to the insurance industry – which isn’t considered a target job area for Gen Z or Millennials.

In addition to offering robust workforce development programs, also reconsider your company’s education benefit offerings. Helping with student loan repayment is extremely attractive to younger generations carrying large balances. For instance, 20% of Millennials with a student loan balance have payments exceeding $500 per month.

Investing in their professional development can also attract younger employees who want to know they have a future ahead of them at their next workplace. Individualized coaching is another way to help them discover career pathways within the company, along with a clear roadmap on how to achieve their professional goals.

AI is Here to Stay and Insurance Companies Must Adapt

AI in the insurance industry is quickly transforming from a forward-thinking experiment to an ongoing part of everyday operations. Human expertise is still an essential part of delivering efficiency and results, but roles may change as different technology and data skills are needed.

How can companies prepare their existing workforce and ensure they have the necessary talent on board to thrive? The key is to strategically upskill your internal talent pool while also creating benefits programs that attract younger generations to fill upcoming employment gaps.

Prepare your workforce in a new AI-driven environment with the help of EdAssist by Bright Horizons. We can help your company create the career pathways, development programs, and education benefits that build a robust workforce ready to tackle the challenges and opportunities that come along with AI augmentation.