In December 2025, Time didn’t name artificial intelligence as “Person of the Year.” It named the architects of AI — the people building the systems now shaping how information, decisions, and power move across industries.

That distinction matters.

Because AI isn’t some neutral force floating in the background. It’s designed, trained, and deployed by people — and the systems they’ve built are increasingly influencing how risk is evaluated, how claims are processed, and how insurance premiums are calculated.

Insurance runs on decisions.

And those decisions are no longer driven by experience alone. They’re being shaped by models most business owners will never see — built by people they’ll never meet.

That’s not a tech trend.

That’s a structural shift

Insurance Is Entering Its “AI Production Era”

For years, carriers experimented with artificial intelligence in labs and pilot programs. That phase is over. In 2026, AI is operational. What used to take weeks of human review now takes milliseconds.

Underwriting isn’t just experienced judgment anymore. It’s algorithmic calculation.

Claims are being triaged automatically. Fraud detection is being modeled in real time. Pricing is becoming hyper-personalized.

This shift isn’t coming.

It’s already built into how commercial carriers evaluate risk.

Companies like Zurich and Travelers are using AI-driven analytics to evaluate commercial property exposure, model climate risk, and segment workers’ compensation risk with far greater precision than traditional underwriting allowed. These systems analyze data points ranging from satellite imagery to historical claims severity trends in seconds — adjusting pricing models in ways business owners may never directly see.

What That Means for Business Owners

Here’s the part no one talks about: AI doesn’t eliminate bias. It scales it.

As insurance companies build AI into how they price policies and handle claims, the flip side hits business owners hard. If your loss history is messy, AI sees it faster. If your safety program is strong, AI recognizes it faster. If your risk profile has been misunderstood for years, AI may simply lock that misunderstanding into an automated model.

The question isn’t whether AI is good or bad.

The question is: Who is it optimizing for?

Carriers benefit from efficiency. Large brokerages benefit from scale. Insurance technology startups benefit from automation.

But if you’re a 30-employee contractor with a rising experience modification factor, are you benefiting from AI — or just being evaluated by it?

Faster Doesn’t Mean Smarter

Some brokers are leaning into AI for speed. Faster quoting. Faster comparisons. More automated service. That sounds impressive. And in some cases, it is. But quoting faster isn’t the same as structuring smarter.

AI can surface data. It can analyze patterns. It can predict outcomes.

What it cannot do is:

• Reposition a risk strategically.
• Structure a program for long-term leverage.
• Negotiate based on relationships and context.
• Advocate when a model doesn’t tell the full story.

Technology accelerates decisions.

Strategy improves them.

The Leverage Shift

Historically, larger companies had the advantage. They had data, scale, and bargaining power. Smaller businesses paid retail and accepted “market conditions” as an explanation.

AI has the potential to change that dynamic — but only if used intentionally.

Done well, AI can:

• Identify cost drivers.
• Reveal hidden loss trends.
• Highlight where operational changes can reduce premiums.
• Provide clarity before renewal surprises hit.

Done poorly, it simply becomes another black box that spits out a number.

And the number always feels justified because “the model says so.”

That's where intentional risk management becomes critical.

The Bigger Picture

AI isn’t the enemy. Passive risk management is.

The companies that will win in this next era won’t be the ones with the flashiest tech stack.

They'll be the ones who understand how risk is being evaluated, structure their programs intentionally, use data strategically instead of defensively, and demand transparency instead of accepting "that's just the market."

AI is becoming one of the most powerful forces shaping insurance.

The question isn’t whether it’s here.

The question is whether it’s working for you.

If you don’t know what data is influencing your pricing, that’s a problem.

Let’s review your structure and make sure your program is working for you — not just being priced around you.

Because in 2026, ignorance isn’t neutral.

It’s expensive.