The Role of Artificial Intelligence in Life Insurance

Executive Summary

Life insurers face mounting pressure to accelerate underwriting, reduce costs, and meet customer expectations for instant service. Artificial intelligence – particularly generative AI and agentic AI – enables insurers to automate end-to-end processes, personalize experiences and make accurate risk assessments in real time. By implementing AI strategically, insurers can achieve 20-40% cost reductions, compress timelines from weeks to minutes, and build stronger customer relationships. This article shows how AI enhances operational efficiency in life insurance, including specific applications and practical steps to excel in your AI adoption journey. The life insurance industry has traditionally been cautious about adopting new technologies, but artificial intelligence (AI) is forcing a rethink. AI – specifically generative AI powered by large language models (LLMs) – offers life insurers unprecedented opportunities to enhance value across operations. According to Milliman research, "there have been numerous historical examples of insurers whose early adoption of transformative technologies such as advances in computing (MetLife, Franklin Life, and PacLife's UNIVAC mainframes, 1954), the internet (Progressive's auto-insurance.com, 1995), and development of derivative financial instruments gave them a competitive edge." Insurers that successfully harness AI capabilities stand to drive growth in operational efficiency, customer satisfaction, and profitability, while those that wait risk falling behind as competitors capture compounding advantages.