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One in five insurers cuts training budgets while deploying AI, Covenir survey finds
70% of insurance operations leaders now run AI in live production, up from 58% last year. Yet one in five are cutting training budgets, leaving staff underprepared for the tools they're expected to use.
One in Five Insurers Cut Training While Deploying AI, Survey Shows
Seventy percent of insurance operations leaders now have AI running in live operations. But one in five are cutting training budgets at the same time, creating a gap between the technology being deployed and the people expected to use it.
That's the central finding of Covenir's 2026 Insurance Operations Leaders Trends Report, released June 9. The survey included 152 U.S.-based insurance operations decision-makers at carriers, MGAs, and Insurtechs.
Optimism Masks Real Strain
Eighty-eight percent of insurance operations leaders say they're optimistic about the industry's future, up from 83% in 2025. Yet 91% of executives report their teams are more stretched than ever.
Budget growth isn't solving the problem. Nearly 68% of organizations saw increases in 2026. But mid-sized carriers with 500-999 employees-the segment with the highest budget growth-report the most team strain at 83%.
AI Deployment Outpacing Preparation
AI adoption has accelerated. Seventy percent of organizations now run AI in live operations, up from 58% a year ago. Only 7% are actively protecting training budgets, however. Twenty percent are cutting them.
The pressure is shifting as insurers mature. Among organizations running AI across multiple functions, 54% plan to cut headcount most in 2026-more than five times the rate of less advanced peers at 11%. This suggests job losses may accelerate as AI adoption deepens.
Outsourcing is becoming part of the AI strategy. Twenty-nine percent of leaders now expect outsourcing partners to have AI solutions embedded in their services.
Data Collected, Decisions Stuck
Eighty-one percent of leaders say operational insights are critical to business success. Yet 47% either aren't using their data or are collecting dashboards they can't translate into decisions.
Brand Promise at Risk at First Notice of Loss
Ninety percent of leaders say they're confident their operations deliver on brand promises. But 42% say breakdowns happen most often at First Notice of Loss-the exact function most exposed to stretched teams and defunded training programs.
Smaller insurers face the biggest vulnerability. Thirty percent of leaders at organizations with 1-199 employees say they aren't confident their operations will deliver the experience their brand promises.
The full report is available at Covenir's website.