AI Passes an Inflection Point in P/C (Dec. ’25)

Talk of AI seemed to pass an inflection point in 3Q25 earnings calls. We heard it mentioned in regard to nearly every facet of insurance – U/W, claims, actuarial, etc. Major banks have said AI will help them keep headcount flat in the years ahead. PC insurers haven’t made those claims, but comp%rev for banks can be 30-40% whereas comp%premiums for most insurers is closer to 10%. PC not likely immune, however, as comp is ~65% of the non-commission expense base. Gulp!