C1 Insights | Correlation One Blog

Leapfrogging the Competition: How Insurers Can Win with GenAI Without Building Models

Written by Correlation One | November 26, 2025
  • Generative AI (GenAI) will reward companies that apply AI to real workflows, not just those that build models.
  • Many insurers fall into the "tool access trap": they deploy AI tools but don't build real capability.
  • Two major life insurers showed that enterprise-wide GenAI enablement can unlock tens of thousands of hours of capacity and real innovations without code or big IT builds.
  • The winners will be insurers who treat GenAI literacy as a core skill, empower business users, and redesign work around AI.

Why GenAI Matters for Insurance Right Now

Q: Why is GenAI such a big deal for insurers?

Insurers are facing three simultaneous pressures:

  • Do more with less: Improve operational efficiency and reduce costs.

  • Grow faster: Hit growth targets without proportional headcount increases.

  • Compete for talent: Attract employees who want to work in AI-forward environments.

GenAI is uniquely suited to these challenges because it can:

  • Automate routine knowledge work (summaries, emails, reporting).

  • Help teams analyze complex documents and data faster.

  • Support agents, underwriters, and service teams with AI “copilots” and workflow assistants.

But simply handing people AI tools is not enough.

The "Tool Access Trap" in GenAI Adoption

Q: If insurers already have AI tools, what's going wrong?

Many insurers have licensed leading GenAI productivity suites and copilots. A typical rollout:

  • Tools are provisioned to hundreds or thousands of employees.

  • Teams receive basic onboarding, newsletters, and office hours.

  • Adoption centers on low-value tasks like email rewrites or meeting notes.

This is the tool access trap: You have AI tools, but you don’t have AI capability.

Employees often:

  • Don’t know which use cases are allowed or high-value.

  • Worry about making mistakes or violating compliance policies.

  • Lack a clear sense of how AI will be evaluated in performance reviews.

Result: AI remains a side experiment, not a core part of how work gets done.

From AI Tools to AI Capability: A Different Approach

Q: What does it look like when insurers build real GenAI capability?

Two large life insurers chose a different strategy: treat GenAI as a workforce capability problem, not just a technology problem.

They focused on:

1. Enterprise-wide enablement

  • Programs for executives, managers, and individual contributors.
  • AI seen as a core skill, as fundamental as spreadsheets or email.

2. Business-context training

  • Examples drawn from real insurance workflows (sales, underwriting, servicing, IT operations).
  • Content aligned with compliance, risk, and governance expectations.

3. Project-based learning

  • Participants built working AI “agents” and workflows using no-code tools.
  • Capstone projects tied directly to real problems inside the business.

In one pilot cohort of just over 50 people, the results included:

  • 100% program completion

  • High live-session participation

  • Measurable jumps in AI knowledge and confidence

  • A portfolio of working GenAI prototypes that addressed real business problems

Real-World GenAI Use Cases in Insurance

Q: What kinds of GenAI projects did business teams actually build?

Here are a few examples of solutions created by non-technical employees:

1. AI-Driven Sales Practice

Problem:
New sales hires needed more personalized practice and feedback. Role-plays were time-consuming for managers.

Solution: An AI agent that:

  • Simulates realistic customer conversations.

  • Provides in-the-moment coaching and suggestions.

  • Tracks performance over time.

Impact:
Faster ramp-up for new hires and thousands of hours saved in manual role-plays.

2. Knowledge Retrieval for IT Operations

Problem:
IT teams were losing more than a thousand hours each month searching across systems to find configuration details and ownership information.

Solution: A GenAI assistant that:

  • Connects to internal knowledge repositories and tickets.

  • Answers natural language questions like, “Who owns this system?” or “Where is this config documented?”

  • Surfaces relevant information instantly.

Impact:

  • Projected to save 10,000+ hours per year and speed up incident resolution during pilot phase.
  • Projected to 100,000 hours per year post-pilot.

3. Automated Data Extraction from Policy and Product Documents

Problem:
Teams were manually extracting key fields from policy and product PDFs and reformatting them before analysis.

Solution: A GenAI workflow that:

  • Reads complex documents and pulls required fields.

  • Structures the data for spreadsheets or BI tools automatically.

  • Reduces human error in extraction and formatting.

Impact:

  • Thousands of hours reclaimed and more consistent, reliable data.

Why This Worked: Tackling Human, Not Technical, Barriers

Q: What were the main barriers to GenAI adoption—and how were they overcome?

Most organizations struggle with four human barriers:

  1. The blank-page problem
    “Where should I even start with AI?”

  2. Fear and uncertainty
    “Will this replace my job, or will I get in trouble if I use it wrong?”

  3. Siloed experimentation
    “I built something, but no one else sees or uses it.”

  4. Unclear success metrics
    “How will we know if our AI usage is ‘good’ or worth scaling?”

The successful insurers tackled these by:

  • Providing guided use cases tied to everyday workflows.

  • Making it clear from leadership that AI is there to augment, not replace, people.

  • Creating branded academies and shared project repositories so wins were visible and reusable.

  • Framing projects as innovation challenges tied directly to strategic goals (e.g., efficiency targets, customer experience metrics).

Three Levels of AI Value in Insurance

Q: What types of value can GenAI actually create?

Across sectors, AI value in knowledge work tends to emerge at three levels:

1. Individual productivity

  • Drafting emails, summarizing documents, generating first drafts of presentations.

2. Workflow optimization

  • Automating team processes like reporting, escalations, quality checks, and information retrieval.

3. System redesign

  • Rethinking end-to-end journeys (e.g., underwriting, claims, policy servicing) around AI from the ground up.

Many insurers assume Levels 2 and 3 require large IT builds. The pilots showed that:

  • Business users can build Level 1 and Level 2 solutions with little or no code.

  • IT can then focus on high-impact Level 3 transformations where deeper integration and governance are needed.

This division of labor accelerates time-to-value and reduces bottlenecks.

What Sets AI Leaders Apart in Insurance

Q: With everyone accessing similar tools, how do leaders differentiate?

The real advantage comes from how quickly and broadly an insurer can turn AI tools into AI capability.

Leaders tend to:

  • Invest in people first
    Make GenAI literacy a standard skill, not an optional extra.

  • Empower the front line
    Encourage employees closest to the work to identify and prototype use cases.

  • Move with urgency
    Recognize that capability gaps compound over time. The difference between early adopters and late movers widens every quarter.

This mirrors the early internet era: nearly every retailer put up a website, but only a few reimagined their business models. Today, nearly every insurer has GenAI licenses. Only a minority are redesigning work around them.

Practical Steps for Insurance Leaders

Q: What should different leaders inside an insurance company do now?

For CEOs and Business Unit Leaders

  • Treat GenAI as a strategic priority, not just a tech project.

  • Tie AI initiatives to clear business goals: growth, expense ratio, loss ratio, NPS.

  • Ask: Where are we still paying people to do tasks that AI can augment or automate?

For Chief AI / Technology Officers

  • Pair tech rollout with systematic workforce enablement.

  • Build architectures that allow safe experimentation by business users, not just central teams.

  • Measure success by the number and impact of AI-powered workflows created across the business.

For Chief Human Resources Officers

  • Position GenAI literacy as the new digital literacy.

  • Use AI training as an asset in your talent brand—especially for early-career hires.

  • Partner with business leaders to redesign roles so reclaimed time turns into higher-value work, not fear.

The Leapfrog Opportunity for Insurers

Q: Can traditional insurers really leapfrog more “digital-native” competitors?

Yes—if they act now.

Insurers have powerful advantages:

  • Deep domain expertise.

  • Rich data and complex workflows that benefit massively from AI.

  • Large knowledge-worker populations, where small efficiency gains scale quickly.

By investing in GenAI enablement for their people, insurers can:

  • Unlock tens of thousands of hours in staff capacity.

  • Launch new AI-enabled services without waiting on large IT programs.

  • Shift culture from cautious observers to confident innovators.

The core question is no longer whether insurers should build GenAI capability.
It’s how quickly they can do it—before their competitors do.

Quick FAQ: GenAI for Insurance Leaders

Q: Do we need to build our own models to win with GenAI?

A: No. Most insurers can achieve major gains by applying existing, secure GenAI tools to their workflows and enabling their people to use them effectively.

Q: Where should we start?

A: Start with a structured enablement program focused on real use cases in sales, servicing, operations, and IT—then scale successful pilots.

Q: How do we avoid compliance and risk issues?

A: Define clear guardrails, approved use cases, and data policies up front. Train people on what is and isn’t allowed and provide safe environments for experimentation.

Q: How do we measure success?

A: Track saved hours, reduced cycle times, error reductions, and revenue impacts from AI-enabled workflows—not just “number of users” or logins.

About Correlation One

Correlation One designs and delivers GenAI enablement programs for large enterprises across insurance, financial services, consumer goods, and other sectors.

Our academies have helped tens of thousands of professionals in more than 20 countries build practical AI capabilities, develop real-world solutions, and drive measurable business impact.