Why the future of insurance belongs to AI-native insurers

The insurance industry is at an inflection point. Faced with rising submission volumes, increasing reinsurance costs, and ever-changing market conditions, insurers must decide whether to keep stretching outdated systems or embrace a new model of work entirely.

That new model centers around AI-native teams—organizations built to thrive in a data-rich, decision-critical environment, using intelligent automation and real-time portfolio insights to drive better outcomes at scale.

AI-native is a mindset, not just a technology upgrade

AI-native teams operate with a fundamentally different approach. Rather than bolting on new tools to brittle, fragmented legacy systems, they adopt platforms designed from the ground up for dynamic decision-making. These teams align effort with strategy, act quickly on the best opportunities, and continuously learn from every interaction.

In AI-native organizations, automation is applied where it drives strategic value, supporting consistent, portfolio-aligned decisions and freeing underwriters to focus on complex risks, broker relationships, and nuanced judgment calls.

Inefficiency was never sustainable

Despite years of investment in modernization, insurers still lose meaningful time on low-value work. Federato’s 2025 State of Underwriting Report shows that one in four submissions falls outside of appetite, and teams spend over a quarter of their time on deals that will never bind.

This inefficiency slows down workflows, erodes profitability, strains relationships, and diverts attention from strategic opportunities. AI-native teams combat this by using real-time data, dynamic portfolio guidance, and intelligent triage to focus only on what matters.

Scaling performance, not complexity

As organizations grow, it’s natural for systems and tools to accumulate over time. But without a unified approach, workflows can become fragmented, making it harder to move quickly, ensure consistency, or respond to emerging opportunities.

AI-native teams have a different approach. By consolidating workflows and aligning data, strategy, and automation in one environment, they create a foundation for consistent, high-performance operations that scale with the business.

Teams need intelligence that drives impact

Bolting on more tools doesn’t make a team AI-native. What matters is how that technology enables better decision-making. AI-native teams prioritize intelligent support over basic automation. They rely on systems that surface in-appetite deals, deliver explainable insights, and dynamically adjust as strategy evolves.

These teams are focused on solving real business problems: increasing win rates, improving quote turnaround times, and optimizing portfolios for risk-adjusted returns.

Learn how AI-native insurers are pulling ahead

Leading insurers are already making this shift, and the gap between AI-native and traditional teams is widening. As industry pressures mount, the ability to act quickly and intelligently on the right risks will become a clear differentiator.

Register for our upcoming webinar, 2026 and beyond: transforming insurance for an AI-native future, to learn how insurers are operating as AI-native teams today, and what you can do now to stay ahead.