Wolf&Grayson EditorialArtificial Intelligence has become a vital component of the insurance sector, influencing everything from underwriting and capital allocation to compliance and customer interaction. Few leaders understand this transformation better than Joe Zuk, Operating Partner at Altamont Capital Partners. With over 22 years of experience spanning broking, underwriting, venture and enterprise investment, and operational leadership, Zuk brings a unique and grounded perspective on how AI is reshaping the insurance industry.
“We are past the point of wondering if AI will change insurance. It already has and will continue to do so,” Zuk says. His insights, shaped by his investment and advisory work and his firsthand operational experience, paint a picture of a future where AI is a transformative force, inspiring a new era of possibilities in the insurance industry.
How AI Is Driving Operational Change
Zuk identifies three foundational ways AI is transforming the insurance ecosystem. “We are seeing AI deployed for submission triage, broker prioritization, claims fraud and identification scoring, sentiment analysis, and even early-stage reserve estimation,” Zuk explains. These tools are significantly improving both accuracy and speed in traditionally manual workflows.
1. Data Organization and Summarization: Large language models enable insurers to interpret complex, high-volume datasets, facilitating faster and more informed decisions in underwriting and claims. A fundamental tenet of the insurance industry is obtaining transparency in risk exposure from the point of risk origination. Using LLMs and foundational models to support insurers in their underwriting and claims management is quickly becoming a crucial requirement for insurers.
2. Automation of Repetitive Tasks: AI agents are streamlining routine processes such as form handling, document triage, and claims intake, improving operational efficiency and freeing up talent for more strategic work. Allowing underwriters, claims examiners, and managers to focus on exception handling, portfolio management, and strategic decision-making helps bridge the talent gap and improve outcomes.
3. Behavioral Modeling for Risk Assessment: Advanced modeling techniques enable insurers to anticipate how risks may evolve, supporting more dynamic and predictive underwriting approaches. AI-enabled Managing General Agents are also emerging as key players in the industry. Particularly in personal lines and small commercial segments, these MGAs are embedding AI throughout their operations. “Efficiency and speed, to quote, are crucial in these markets,” Zuk says. “AI gives these MGAs the ability to respond faster and underwrite more effectively.”
Bridging Talent Gaps and Enhancing Productivity
Beyond the technological benefits, AI is critical in addressing structural challenges within the insurance workforce. Zuk points to a shortage of industry talent and sees AI as a force multiplier. “There is certainly a shortage of insurance talent overall. Utilizing AI helps increase productivity in the current and future workforce, who I would argue is becoming AI native.” This reassures the audience about the future of the insurance workforce.
This evolving skillset is changing not only how insurers operate but also how new talent is onboarded and trained. Zuk believes that harnessing AI to support human decision-making will define the next generation of insurance professionals.
Ethical Concerns and Emerging Risks
The rise of AI also introduces new risks. Zuk is particularly concerned about the potential for discrimination in algorithmic decision-making. He warns about the ‘AI redlining,’ which refers to discriminating against specific individuals or demographics, unintentionally or due to inherent biases. This is a real and pressing concern in the industry, he says.
He also warns of the risks associated with “silent AI exposures.” These are cases where traditional insurance policies unintentionally fail to cover AI-related risks, particularly in general liability, professional liability, directors and officers policies, and cyber coverage. As AI technologies become more prevalent, insurers must adapt underwriting practices to address these exposures more precisely.
Zuk also points to the changing regulatory landscape in places such as the United States, the United Kingdom, and the European Union. As these regions establish frameworks for governing AI use, insurers must stay ahead of the curve regarding compliance. This means collaborating closely with technology providers and regulatory bodies to ensure transparency and fairness in AI-driven systems.
Investing in AI-Driven Insurance Innovation
In his role at Altamont Capital Partners, Zuk actively works with and invests in companies where AI is not an added feature but a fundamental and foundational capability. He references AI-powered portfolios and follow-form syndicates in the Lloyd’s of London market as examples of how capital is deployed in new ways. “AI will become increasingly a core specialty and capability in everything we look at,” he explains.
His work with early-stage companies often emphasizes embedding AI into underwriting, product development, and distribution strategies. These companies are not just innovating around the edges of insurance. They are reimagining its foundations, often in ways that can help expand access to coverage and increase the sector’s resilience. For instance, AI is being used to develop more personalized insurance products and streamline claims processing, fundamentally changing how insurance is done.
A Human-Centered Future with AI
Zuk envisions the future of insurance as a collaborative relationship between humans and intelligent systems. “The future of insurance is not man versus machine. It is man augmented by machine,” he says. This vision highlights AI’s potential to support better decision making, enhance operational efficiency, and close the global coverage gap. It also focuses on rebuilding consumer trust by making insurance processes more transparent, responsive, and personalized. This hopeful vision of the industry’s evolution is designed to inspire the audience.
Despite the risks, Zuk remains optimistic. For him, the thoughtful integration of AI is an opportunity to elevate the insurance industry, not to replace its people, but to empower them.
For more insights on the evolution of AI in insurance, connect with Joe Zuk on LinkedIn or visit his website.
