AI Lag Is Costing Insurance Its Next Generation

Gen Z wants AI. Insurance is slow. That gap is fueling the talent crisis.

A new survey from Counterpart, an agentic insurance platform, and Young Risk Professionals makes the picture clear: stability still attracts young talent, but AI adoption will decide who keeps it.

Among U.S. insurance professionals aged 21 to 35, 64% said stability was their main reason for entering insurance, and 54% cited career advancement. Over two-thirds said benefits and compensation are a major draw.

The friction begins with AI. Gen Z views AI as a tool, not a threat - 70% aren't worried about AI taking their jobs, 69% believe it will improve their daily workflow, and over 70% expect it to boost performance. Yet only 8.5% say they're strongly encouraged to use AI at work, just 27% use it daily, and 45% call slow tech adoption a serious industry problem.

"There's a big gap happening between what we're seeing in the broader economy versus what's happening in insurance," said Tanner Hackett, CEO of Counterpart. "These young professionals are smart. They're recognizing, 'Wait, hold on, the world is changing around me and we're sitting still in insurance.'"

Why this matters

At a time when attracting new talent is critical, uncertainty around AI is clouding what used to be a straight path: start, specialize, advance. As Hackett put it, AI is the "looming threat" over a career path that once felt obvious.

Insurance has "staved off change" for years, he said, and is still behind in tools, systems, and thinking. The risk now isn't AI itself - it's failing to integrate AI into everyday practice while the rest of the economy moves forward.

What leaders can do now

This isn't about flashy pilots. It's about creating clarity, standards, and momentum. Start with explicit, top-down alignment: AI will change underwriting, claims, distribution, compliance, and service - and you will adapt.

• Define AI expectations by role: Add clear competencies to job descriptions and performance reviews. Spell out where AI should be used and how outcomes are measured.
• Redesign workflows, not just tools: Map key processes (submission triage, claims FNOL, fraud flags, endorsements) and decide where AI assists vs. automates. Document approvals and guardrails.
• Create internal AI champions: Encourage motivated Gen Z staff to become the go-to trainers and support. Give them time, resources, and a forum to share wins.
• Launch safe sandboxes: Provide approved tools, synthetic data, and clear data-handling rules. Start with low-risk use cases and scale based on results.
• Pair enablement with governance: Set policies for data privacy, bias checks, and human-in-the-loop review. Align with frameworks like the NIST AI Risk Management Framework.
• Mentor for AI-era careers: Update mentorship to include AI literacy, prompt quality, model limitations, and ethical use. Track mentee projects tied to real KPIs.
• Measure what matters: Time saved per task, loss ratio lift, claim cycle time, quote turnaround, accuracy deltas, and customer satisfaction - report progress monthly.
• Reward adoption: Recognize teams that document workflows, share reusable prompts, and deliver measurable improvements.

What young professionals can do

• Become the resident AI expert: Offer training sessions, build a prompt library, and publish quick SOPs for your team.
• Pick one process and improve it: Example: triage inbound submissions with structured notes, summarize loss runs, or draft claim correspondence with review checkpoints.
• Show the math: Before/after metrics beat opinions. Turn small wins into department standards.

The opportunity in plain terms

Hackett sees insurance as "ripe" for AI, and young talent is ready to use it. The risk is cultural, not technical: friends outside the industry are using these tools daily while many carriers and brokers still ignore them.

The fix is straightforward: acknowledge the shift, set expectations, teach the skills, and build visible pathways for growth. Do that, and stability becomes a feature - not a ceiling.

Survey snapshot

Counterpart commissioned a survey of 138 Gen Z professionals across the U.S. in June 2025. Respondents include carriers (46%), retail agents (19%), and wholesale brokers (7.7%), with roles spanning claims, project management, and engineering/technology.

Get started with skills

If your team needs a structured path to AI fluency by job function, explore curated options here: AI courses by job.

Set the direction from the top, give your people the tools, and make AI part of daily work. That's how insurance becomes a career Gen Z chooses - and stays to lead.