AI’s Insurance Gamble: Risky Business?

Betting on AI Without a Safety Net

AI’s rapid rise in the insurance industry is driving efficiency—but also new, unpredictable risks. According to insurance tech veteran Ian Fantozzi, CEO of Beazley’s in-house digital firm, AI has the potential to revolutionize underwriting, claims, and customer service. However, he warns that the industry may be underestimating how dangerous it could be if AI tools are deployed without strict controls and oversight. With multibillion-dollar risks at play, insurers must critically evaluate the systems they’re implementing before the gamble turns into a catastrophe.

Underwrite with Caution, Automate with Wisdom

Fantozzi emphasizes the need for insurer-led accountability as AI systems increasingly make high-stakes decisions. The evolving risk landscape includes deepfakes, data hallucinations, and increasingly complex liability questions. Insurers will not only be responsible for their own AI models but may also be exposed through the actions of clients using AI in high-risk environments. To mitigate this, he stresses the importance of transparency, ethics, and robust governance frameworks guiding the use of automated tools across the insurance value chain.