Insurity Challenges Vendors on AI Cost Claims in Insurance Core Systems
Insurity, a cloud software provider for property and casualty carriers, is calling out what it sees as hollow AI promises from legacy core system vendors. The company says most announced AI capabilities-from agentic product configurators to embedded assistants-sprinkle AI onto small tasks while leaving carriers dependent on expensive implementation teams and long timelines.
The real measure of AI in insurance, Insurity argues, is whether it cuts the time and cost to design, price, launch, and manage insurance products. Most vendors claiming "up to 50% effort reduction" still deliver projects through high-markup system integrators that run for months or years.
What Carriers Should Ask Their Vendors
Jatin Atre, president at Insurity, issued a direct challenge to carrier executives: stop signing contracts until vendors answer three concrete questions.
- How much will this reduce implementation and maintenance spending over three years?
- How much will it shorten the time to launch or change a complex commercial product?
- Can your own teams configure and control it, or do you need the vendor's people in the middle?
"AI was supposed to reduce cost for carriers, not add a new line item to their vendor and SI invoices," Atre said. "If your vendor can't answer those questions with real numbers and real timelines, they're not using AI for you. They're using AI on you."
Where Insurity's Approach Differs
Insurity focuses on commercial and specialty lines-carriers managing thousands of complex policies rather than millions of identical personal auto and home policies. Its AI is built for insurance-specific problems: understanding coverages, rating structures, schedules, and underwriting intent.
Recent software releases include real-time risk intelligence, advanced catastrophe modeling with multi-ring accumulation, intelligent submission scoring to surface profitable risks, and AI-enabled premium audit self-service. The company also offers document intelligence that classifies submissions and agentic FNOL experiences that guide policyholders through loss reporting.
Sylvester Mathis, chief revenue officer and chief insurance officer at Insurity, said these capabilities are already in production across underwriting, policy, and analytics. "While our competitors are now promoting new agentic applications, Insurity can point to similar and deeper capabilities that are already live," he said.
The Broader Market Question
Insurity's challenge reflects a tension in the insurance software market. Vendors are marketing AI-native platforms and agentic systems, but the underlying work still requires large professional services teams. The question for carriers: Is AI reducing their costs, or inflating vendor and system integrator invoices?
Insurity is trusted by 22 of the top 25 P&C carriers and operates over 400 cloud deployments. The company is a portfolio company of GI Partners and TA Associates.
For more information, contact Elizabeth.Hutchinson@insurity.com.
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