Why Insurance Needs AI Now & How Nineteen58 Can Help
Insurance is at a tipping point: legacy systems and fragmented data leave incumbents struggling while digital challengers set new standards. This blog explores how AI can close the customer experience gap and how Nineteen58’s agents deliver continuity, personalisation, and efficiency at scale.
Sep 9, 2025
A sector under pressure
Insurance is a global powerhouse, valued at over $8 trillion in gross written premiums in 2025 and forecast to keep growing steadily (Statista, 2025). Yet scale hides fragility. Traditional insurers are burdened with fragmented data, legacy systems, and slow decision-making, while consumers demand hyper-personalised products, instant service, and full transparency.
The cost of inaction is high. McKinsey (2025) finds that insurers who scale AI effectively achieve total shareholder returns up to 6.1× higher than laggards. The message is clear: incumbents that only experiment with AI risk being left behind, while digital-first challengers set new standards for simplicity, speed, and customer trust (McKinsey & Company, 2023).
The customer experience gap
Insurance interactions are infrequent, often just one or two a year, which means every touchpoint carries disproportionate weight (McKinsey & Company, 2023). Yet most incumbents deliver journeys that are disjointed, generic, and opaque.
Fragmented experiences: 60% of customers switch channels before purchasing, but many insurers fail to maintain continuity. One in six never receives follow-up after seeking advice, and 40% who do hear back deal with multiple advisers, creating frustration (McKinsey & Company, 2023).
Lack of personalisation: Customers engage with insurers an average of four times during research, yet many remain confused after buying a policy. Around 40% of cancellations stem from lack of perceived value (McKinsey & Company, 2023).
Operational drag: Firms remain stuck in “pilot purgatory,” where siloed data, outdated tech stacks, and misaligned functions prevent AI initiatives from scaling (Mußhoff, Talischi & Rifai, 2024).
Meanwhile, insurtechs are capturing market share by offering seamless onboarding, embedded cover, and usage-based pricing – models that make incumbents look outdated.
The business case for AI in insurance
McKinsey (2023) shows that insurers who lead in customer experience outperform peers by 20% in total shareholder return for life and 65% for property & casualty. They also enjoy stronger revenue growth, EBIT expansion, and employee satisfaction.
When AI is embedded across domains, the gains accelerate:
10–20% improvement in agent conversion rates
10–15% increase in premium growth
20–40% cost reduction in onboarding
3–5% improvement in claims accuracy (Fiandro, Atluri & Travasoni, 2024)
These are not marginal improvements; they are structural advantages that reshape competitive position.
How Nineteen58 can help
At Nineteen58, we focus on delivering AI agents that solve for the insurance industry’s three biggest challenges:
Continuity of service: Our omnichannel agents maintain memory across calls, WhatsApp, SMS, and email, ensuring customers never fall through the cracks.
Personalisation at scale: By integrating with CRM, policy, and claims systems, our agents provide contextual advice and tailored recommendations – turning compliance-heavy products into human-centred experiences.
Operational efficiency: With data integration and automation, we move insurers out of “pilot purgatory” and into live deployments that reduce costs while improving accuracy.
Closing thought
The insurance sector stands at a crossroads. Customers have moved on, challengers are moving fast, and the incumbents who delay full adoption of AI risk irrelevance. But for those who act soon, the reward is not just efficiency – it is stronger loyalty, higher growth, and a resilient business model built for the next decade.
More to Discover
Why Insurance Needs AI Now & How Nineteen58 Can Help
Insurance is at a tipping point: legacy systems and fragmented data leave incumbents struggling while digital challengers set new standards. This blog explores how AI can close the customer experience gap and how Nineteen58’s agents deliver continuity, personalisation, and efficiency at scale.
Sep 9, 2025
A sector under pressure
Insurance is a global powerhouse, valued at over $8 trillion in gross written premiums in 2025 and forecast to keep growing steadily (Statista, 2025). Yet scale hides fragility. Traditional insurers are burdened with fragmented data, legacy systems, and slow decision-making, while consumers demand hyper-personalised products, instant service, and full transparency.
The cost of inaction is high. McKinsey (2025) finds that insurers who scale AI effectively achieve total shareholder returns up to 6.1× higher than laggards. The message is clear: incumbents that only experiment with AI risk being left behind, while digital-first challengers set new standards for simplicity, speed, and customer trust (McKinsey & Company, 2023).
The customer experience gap
Insurance interactions are infrequent, often just one or two a year, which means every touchpoint carries disproportionate weight (McKinsey & Company, 2023). Yet most incumbents deliver journeys that are disjointed, generic, and opaque.
Fragmented experiences: 60% of customers switch channels before purchasing, but many insurers fail to maintain continuity. One in six never receives follow-up after seeking advice, and 40% who do hear back deal with multiple advisers, creating frustration (McKinsey & Company, 2023).
Lack of personalisation: Customers engage with insurers an average of four times during research, yet many remain confused after buying a policy. Around 40% of cancellations stem from lack of perceived value (McKinsey & Company, 2023).
Operational drag: Firms remain stuck in “pilot purgatory,” where siloed data, outdated tech stacks, and misaligned functions prevent AI initiatives from scaling (Mußhoff, Talischi & Rifai, 2024).
Meanwhile, insurtechs are capturing market share by offering seamless onboarding, embedded cover, and usage-based pricing – models that make incumbents look outdated.
The business case for AI in insurance
McKinsey (2023) shows that insurers who lead in customer experience outperform peers by 20% in total shareholder return for life and 65% for property & casualty. They also enjoy stronger revenue growth, EBIT expansion, and employee satisfaction.
When AI is embedded across domains, the gains accelerate:
10–20% improvement in agent conversion rates
10–15% increase in premium growth
20–40% cost reduction in onboarding
3–5% improvement in claims accuracy (Fiandro, Atluri & Travasoni, 2024)
These are not marginal improvements; they are structural advantages that reshape competitive position.
How Nineteen58 can help
At Nineteen58, we focus on delivering AI agents that solve for the insurance industry’s three biggest challenges:
Continuity of service: Our omnichannel agents maintain memory across calls, WhatsApp, SMS, and email, ensuring customers never fall through the cracks.
Personalisation at scale: By integrating with CRM, policy, and claims systems, our agents provide contextual advice and tailored recommendations – turning compliance-heavy products into human-centred experiences.
Operational efficiency: With data integration and automation, we move insurers out of “pilot purgatory” and into live deployments that reduce costs while improving accuracy.
Closing thought
The insurance sector stands at a crossroads. Customers have moved on, challengers are moving fast, and the incumbents who delay full adoption of AI risk irrelevance. But for those who act soon, the reward is not just efficiency – it is stronger loyalty, higher growth, and a resilient business model built for the next decade.
More to Discover
Why Insurance Needs AI Now & How Nineteen58 Can Help
Insurance is at a tipping point: legacy systems and fragmented data leave incumbents struggling while digital challengers set new standards. This blog explores how AI can close the customer experience gap and how Nineteen58’s agents deliver continuity, personalisation, and efficiency at scale.
Sep 9, 2025
A sector under pressure
Insurance is a global powerhouse, valued at over $8 trillion in gross written premiums in 2025 and forecast to keep growing steadily (Statista, 2025). Yet scale hides fragility. Traditional insurers are burdened with fragmented data, legacy systems, and slow decision-making, while consumers demand hyper-personalised products, instant service, and full transparency.
The cost of inaction is high. McKinsey (2025) finds that insurers who scale AI effectively achieve total shareholder returns up to 6.1× higher than laggards. The message is clear: incumbents that only experiment with AI risk being left behind, while digital-first challengers set new standards for simplicity, speed, and customer trust (McKinsey & Company, 2023).
The customer experience gap
Insurance interactions are infrequent, often just one or two a year, which means every touchpoint carries disproportionate weight (McKinsey & Company, 2023). Yet most incumbents deliver journeys that are disjointed, generic, and opaque.
Fragmented experiences: 60% of customers switch channels before purchasing, but many insurers fail to maintain continuity. One in six never receives follow-up after seeking advice, and 40% who do hear back deal with multiple advisers, creating frustration (McKinsey & Company, 2023).
Lack of personalisation: Customers engage with insurers an average of four times during research, yet many remain confused after buying a policy. Around 40% of cancellations stem from lack of perceived value (McKinsey & Company, 2023).
Operational drag: Firms remain stuck in “pilot purgatory,” where siloed data, outdated tech stacks, and misaligned functions prevent AI initiatives from scaling (Mußhoff, Talischi & Rifai, 2024).
Meanwhile, insurtechs are capturing market share by offering seamless onboarding, embedded cover, and usage-based pricing – models that make incumbents look outdated.
The business case for AI in insurance
McKinsey (2023) shows that insurers who lead in customer experience outperform peers by 20% in total shareholder return for life and 65% for property & casualty. They also enjoy stronger revenue growth, EBIT expansion, and employee satisfaction.
When AI is embedded across domains, the gains accelerate:
10–20% improvement in agent conversion rates
10–15% increase in premium growth
20–40% cost reduction in onboarding
3–5% improvement in claims accuracy (Fiandro, Atluri & Travasoni, 2024)
These are not marginal improvements; they are structural advantages that reshape competitive position.
How Nineteen58 can help
At Nineteen58, we focus on delivering AI agents that solve for the insurance industry’s three biggest challenges:
Continuity of service: Our omnichannel agents maintain memory across calls, WhatsApp, SMS, and email, ensuring customers never fall through the cracks.
Personalisation at scale: By integrating with CRM, policy, and claims systems, our agents provide contextual advice and tailored recommendations – turning compliance-heavy products into human-centred experiences.
Operational efficiency: With data integration and automation, we move insurers out of “pilot purgatory” and into live deployments that reduce costs while improving accuracy.
Closing thought
The insurance sector stands at a crossroads. Customers have moved on, challengers are moving fast, and the incumbents who delay full adoption of AI risk irrelevance. But for those who act soon, the reward is not just efficiency – it is stronger loyalty, higher growth, and a resilient business model built for the next decade.