McKinsey report on AI in insurance

McKinsey & Company published a report on July 31, 2026, detailing the benefits of artificial intelligence (AI) adoption in the insurance industry. The report states that insurers using a domain-based AI strategy have seen a 10-20% improvement in new-agent success rates and sales conversion, a 10-15% increase in premium growth, a 20-40% reduction in customer onboarding costs, and a 3-5% improvement in claims processing accuracy. McKinsey advises insurers to focus AI on core functions like sales, underwriting, claims, and policy servicing, rather than deploying it organization-wide. The report emphasizes the need for strong data infrastructure, reusable AI systems, and a modular tech stack, as well as the importance of change management, recommending that for every dollar spent on development, another dollar be spent on adoption and scaling.