Specialty insurance market growing with AI innovation

The specialty insurance market is growing rapidly, projected to reach over $270 billion by 2031. This growth is driven by increasing complexity in risks and a shift towards customized coverage. Insurers are moving away from standard policies to address unique industry needs. Many insurance carriers are adopting new technologies like AI and machine learning to improve underwriting and claims processing. These advancements help streamline operations and enhance decision-making. However, some companies still struggle with outdated systems, which can hinder their competitiveness. Generative AI is emerging as a key tool for transforming underwriting and claims. Smaller carriers are more agile in adopting AI, while larger ones face regulatory challenges. Both can benefit from AI, but their strategies for implementation will differ.