Insurance Carriers Should Demand Real Cost Savings From AI, Insurity Says
Insurity, a cloud software provider for property and casualty carriers, is challenging the insurance industry to stop accepting vague AI promises from legacy vendors and demand measurable reductions in implementation costs and timelines instead.
The company's criticism targets what it calls the wave of "agentic AI" announcements from core system vendors. These vendors market AI-native platforms and embedded assistants but continue to rely on large professional services teams and systems integrators to deliver results, Insurity argues. Even when AI is applied to product configuration, vendors typically claim only "up to a 50% reduction" in effort on projects that still run for months or years.
"AI was supposed to reduce cost for carriers, not add a new line item to their vendor and SI invoices," said Jatin Atre, President at Insurity. "Why, in 2026, with all this AI, are we still paying so much and spending so long to set up a new insurance product?"
Where the Real Problem Lies
Most AI offerings in insurance today focus on narrow tasks: finding a policy, surfacing guidelines, or answering a specific question inside a claim. The underlying work still depends on high-cost implementation partners, Insurity says.
The company's focus differs sharply from competitors emphasizing personal auto, home, or claims intake. Insurity builds AI specifically for large commercial and specialty carriers managing thousands of complex policies rather than millions of identical ones.
For these carriers, Insurity argues, AI's value should be measured in three concrete ways: reducing implementation and maintenance spending over three years, shortening the time to launch or change a complex commercial product, and enabling internal teams to configure systems without vendor staff in the middle.
What Insurity Has Already Deployed
Through recent software releases, Insurity has put AI into production across underwriting, policy, and analytics. Features include real-time risk intelligence with advanced catastrophe modeling, data-driven submission scoring to help underwriters focus on profitable risks, and AI-enabled premium audit self-service.
The company also offers document intelligence that reads and classifies submissions, and agentic first notice of loss experiences that guide policyholders through loss reporting in real time.
"While competitors are promoting new agentic applications, Insurity can point to similar and deeper capabilities that are already live," said Sylvester Mathis, Chief Revenue Officer and Chief Insurance Officer at Insurity.
The Challenge to Carriers
Atre is urging carrier executives to ask three questions before signing any new AI-focused contracts or extensions:
- In concrete terms, how much will this reduce implementation and maintenance spending over the next three years?
- How much will it shorten the time to launch or materially change a complex commercial product?
- Can internal teams configure and control it, or will the vendor's people and partners always be required?
"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," Atre said.
Insurity is trusted by 22 of the top 25 P&C carriers and 7 of the top 10 MGAs in the United States, with over 400 cloud-based deployments.
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