AI is not a passing trend. It is quickly becoming part of how insurance agencies and carriers operate. The future will not simply belong to agencies that buy AI products. It will belong to agencies that use AI thoughtfully, protect client information, document their processes, train their people and keep human judgment at the center of the work. You may not be replaced by AI, but an agency or employee who refuses to use it responsibly may be replaced by one who does. •
communications, support training on coverage or agency management systems( AMS), and improve the consistency of documentation. In terms of reducing E & O exposure, a timely reminder, a complete activity note or a better-documented coverage discussion makes a meaningful difference.
However, that does not mean agencies should rush into the first AI product they see. Before shopping for AI, take a critical look at your agency and ask:
• Where are mistakes most likely to occur?
• Where is staff time being lost?
• Where is documentation inconsistent?
• Where would automation support employees without replacing their judgment?
Once you understand your needs, you can evaluate industry products that address those specific problems. Some agency owners hesitate because they worry an AI product may disappear or be replaced within a few years. That concern is understandable, but waiting for the market to settle carries its own risk. Agencies that learn how to use AI responsibly in their daily operations may gain speed, consistency and capacity that competitors without AI will struggle to match.
If you have not already, develop AI guidelines for your agency. The guidelines should explain which AI tools employees may use, what information may or may not be entered into those tools, when human review is required and how AI-assisted work should be documented. Regulators and E & O carriers increasingly expect organizations using AI to maintain governance, oversight, audit trails and controls around sensitive data and third-party tools.
A written guideline also helps employees understand the agency’ s intentions. Many people fear AI because they believe it will take their jobs. Clear communication can reduce that anxiety. Explain what the agency is trying to accomplish, demonstrate the tools and give employees time to learn. Expect questions and some resistance. Successful AI adoption depends not only on the product selected, but also on employee confidence and buy-in.
For agencies just beginning, a large language model( LLM) may be a practical starting point. These tools can help draft emails, prepare reports, organize meeting notes, summarize information and create presentation outlines. They are generally easy to use and can help employees become comfortable with AI. However, agencies should not allow employees to enter client information, sensitive business information or personally identifiable information( PII) into free public AI tools. Doing so may expose confidential information, create privacy concerns and potentially lead to an E & O claim.
Purchased business versions, vendor-integrated tools or AI products built into an existing AMS may provide stronger controls over data, user permissions and audit history. Whatever tool an agency selects, the principle should remain the same: AI may assist, but licensed professionals must review, approve and remain responsible for the final work product.
AI is not a passing trend. It is quickly becoming part of how insurance agencies and carriers operate. The future will not simply belong to agencies that buy AI products. It will belong to agencies that use AI thoughtfully, protect client information, document their processes, train their people and keep human judgment at the center of the work. You may not be replaced by AI, but an agency or employee who refuses to use it responsibly may be replaced by one who does. •
Jim Redeker is VP and senior underwriter at Swiss Re Corporate Solutions and works out of the office in Kansas City, Missouri. Insurance products underwritten by Swiss Re Corp. Solutions America Insurance Corporation, Kansas City, Missouri, a member of Swiss Re Corp. Solutions.
This article is intended to be used for general informational purposes only and is not to be relied upon or used for any particular purpose.
SEPTEMBER / OCTOBER 2026
25