How AI Is Transforming Insurance and Testing the Limits of Trust

AI’s Growing Role in Canadian Insurance: Insights from PolicyMe’s Co-Founders

Artificial intelligence is changing how startups grow and how investors evaluate opportunities. In Canada, the race to attract AI talent and keep intellectual property local is heating up. Meanwhile, the experience of interacting with AI daily raises questions that are both philosophical and psychological.

Jeff McKay, CTO of PolicyMe, points out a critical concern: “We’re going to find in the next year or two that the amount of leakage actually goes up quite a bit because I think the focus on AI is just moving really, really fast. But I don’t see the same energy going into the security aspects.”

Despite the rapid advances, there’s a noticeable gap in data security efforts, which is especially risky in industries like insurance where trust and privacy are fundamental.

Why Insurance?

Insurance is a perfect example to explore AI adoption. It’s heavily regulated, urgently needs digital transformation, and impacts every Canadian’s life. Mistakes or breaches in this sector can have serious consequences.

This week, Laura McKay (COO) and Jeff McKay (CTO) of PolicyMe shared their perspective on integrating AI both internally and for customers. Their insurtech startup is actively deploying AI tools, but they remain cautious about potential risks.

Balancing Innovation with Security

• Tech companies are racing to experiment with AI, but not all are matching that pace in securing data.
• Jeff predicts more cases of data leakage or “vibe hacking” over the next 12 to 24 months if security doesn’t catch up.
• For PolicyMe, any significant breach would be an “existential threat,” given how crucial trust and privacy are in insurance.

Optimism and Urgency

Despite these challenges, Laura and Jeff remain optimistic about AI’s potential to transform insurance. They also question whether they’re moving fast enough to meet customer expectations.

Are Canadians ready for AI-powered life insurance? The conversation highlights the need for careful adoption, balancing innovation with responsibility. For insurance professionals, understanding how AI can improve service while safeguarding sensitive data is essential.

If you’re interested in expanding your AI knowledge for the insurance sector, consider exploring relevant learning paths at Complete AI Training.