Insurtech Insights New York: AI, Climate Risk, and the Future of Insurance

Key Insights from the Insurtech Insights Conference in New York

The recent Insurtech Insights conference in New York brought together leaders from insurance, technology, and academia to discuss pressing issues and emerging trends in property and casualty insurance. Here’s a concise overview of the most noteworthy points from the event.

Climate Risk Requires Local Community Engagement

Experts emphasized the need for insurers and communities to work closely on resilience strategies against climate-related disasters. A panel highlighted California’s experience from 2019 to 2022, where claims remained stable but the risk of a catastrophic event, such as the January Los Angeles fires, was always looming. The message was clear: preparing at the community level is essential to mitigate potentially devastating losses.

Tariffs Affect Insurers’ Appetite for US Treasury Bonds

Volatility in U.S. financial markets and recent ratings downgrades of U.S. Treasurys have led foreign insurers, especially in Europe, to reduce their purchases of these bonds. Kevin Chen, CIO of Horizon Financial, noted that these insurers had previously been major buyers but are now more cautious due to the uncertain economic environment and tariff impacts.

Technology Advances Driving Insurance Forward

AI Slashes Claims Processing Time

Juan Andrade, president and CEO of USAA, shared how AI has significantly shortened the claims payment timeline. Using AI to analyze drone imagery during the California wildfires enabled USAA to pay homeowners quickly—sometimes before they even assessed their own property damage. This approach has cut catastrophe claims processing from 14 days to just seven, even in areas inaccessible to adjusters and residents.

Small Business Insurance Trends Identified by Chubb

Robert Poliseno, division president at Chubb, outlined 10 key trends affecting small business insurance:

• Small business resilience
• Revenue growth in workplaces
• AI tools used in marketing
• Climate change concerns
• Declining inflation expectations
• Rising cyber risk
• Building trust in digital payments
• Workplace discrimination challenges
• Access to insurance

AI for Risk Reduction Still in Early Stages

Lucy Pilko, CEO of AXA XL, noted that while AI is being explored to reduce risks such as cyber threats, the industry’s efforts are still at an early phase comparable to where cyber risk management stood a decade ago.

Outdated Technology Hampers Talent Retention

Garrett Droege of IMA Financial and Josh Hall of ManageMy pointed out that insurers relying on legacy systems from the 1990s create complicated workflows—sometimes requiring 20 clicks to write a policy. This complexity frustrates new hires and contributes to high turnover within the first six months.

Insurance Industry Needs to Communicate Its Social Value

Jon Godfread, president of the National Association of Insurance Commissioners and North Dakota insurance commissioner, stressed the importance of educating the public on insurance’s true purpose: protecting against risk rather than serving as a savings or investment vehicle. He called for clearer communication to improve public perception and foster trust, especially after catastrophic events.

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