Insurance industry eyes automation to control rising expenses: CB Insights

This could help slow premium increases and make coverage more accessible.

The insurance industry is facing growing pressure on affordability, according to a new report by CB Insights and Crawford & Company. 

The report said rising claims costs, inflation, and more complex losses are driving premiums higher, making coverage harder for both consumers and businesses to afford.

The report warned that without stronger cost controls and efficiency gains, these pressures could continue, further eroding affordability across key lines of business.

Technology adoption is seen as a key solution. Insurers that use automation, advanced analytics, and digital distribution could better manage expenses, improve underwriting accuracy, and streamline claims processes. 

This could help slow premium increases and make coverage more accessible.

CB Insights and Crawford also pointed to innovation areas such as remote sensing, parametric insurance, and usage-based pricing. 

These could allow insurers to offer more flexible and affordable products whilst maintaining profitability.

The report concluded that insurers need to act now to address the affordability gap by using technology to control costs and redesign products before coverage becomes out of reach for more policyholders.