The Role of AI and Technologies in Building Inclusive Insurance Systems

Throughout the session, it became clear that AI’s potential in insurance goes far beyond technical optimization. It can help people understand their risks, streamline claims, and make protection affordable for those traditionally excluded from the system, such as informal workers, smallholder farmers, and low-income households in climate-vulnerable regions.

To date, AI in insurance has been used mainly “behind the scenes” to reduce friction or detect fraud and lower administrative costs. But many Fellows believe its future lies in customer engagement and accessibility. Used responsibly, it can redefine how people engage with insurance, making it less a complex matter and more a product that is tangible and relevant to the broader population.

“Technology can create curiosity and engagement,” observed Krishna S. Vatsa, a Member of the National Disaster Management Authority (NDMA) of the Government of India. “If people interact with it, they begin to learn, explore, and see its value.”

One of AI’s strengths lies in its ability to scale expertise by translating complex information into clear and actionable insights that can reach millions of people. This would help make insurance concepts such as risk assessment, coverage, and claims more understandable and relatable and, ultimately, bring a more human dimension to the way people experience protection. When used by trained local agents, these tools help clients better understand their coverage options and therefore make more informed decisions.

Dickson Wong, Director at the Global Asia Insurance Partnership (GAIP) as well as Sinja Buri, who leads the Climate Risk Finance Solutions team at the Munich Climate Insurance Initiative (MCII), stated that insurance has always struggled with distribution and accessibility. But how can insurance reach people that need it most in ways they understand? And how can we build their trust in both the product and the insurers themselves?

As AI becomes more embedded in daily life, conversational tools and digital agents could transform this challenge into an opportunity. For example, the U.S.-based insurance company Lemonade has already demonstrated how AI-driven chat interfaces can simplify the purchase of insurance and build confidence among first-time users. By guiding customers through every step, from purchasing a policy to filing a claim, in a simple, conversational way, it shows how technology can make insurance more user-friendly and how guidance can help people make decisions that fit their circumstances. In emerging markets, this potential is even greater, especially when combined with local adaptation and cultural relevance.

True inclusion means using technology not only to transfer risks but to reduce them in order to help people understand and manage the challenges they face. “Maria”, the AI assistant developed by the insurtech company “Raincoat” and presented by its Co-Founder and CEO Jonathan Gonzalez, embodies this principle. The company builds parametric insurance products, which pay out automatically when predefined environmental triggers are met, for example, a hurricane of a certain strength or rainfall above a certain level. “Maria” helps individuals and communities understand their climate risks and design their own policies. By entering a location, users can access historical weather data, see how similar events have affected their area, and receive tailored coverage options. Through this process, people can better understand their vulnerabilities and access coverage that meets their needs.

“It shows that underserved customers already understand their risks," said Jonathan, "what they need are tools that amplify that knowledge and make it actionable.”

AI’s role in insurance is not only transforming how claims are handled but also how risks are prevented and managed. In China, virtual doctors using artificial intelligence are already helping patients by enabling early diagnosis, remote consultations, and faster claims processing. In areas such as agriculture and disaster response, AI improves weather forecasting and strengthens early warning systems, which helps affected individuals plan accordingly and reduce losses before they occur. In India, these automated systems have facilitated fast payouts after extreme weather events, enabling people to receive support quickly.

Together, these examples demonstrate how technology can strengthen both the financial and social resilience of vulnerable communities.

AI holds enormous potential to make insurance more inclusive and people-centered. But it requires more than technical innovation. It calls for adaptation to local realities, investment in digital literacy, and strong ethical frameworks that ensure transparency and fairness. If used wisely, AI can help millions of people better understand their risks and therefore contribute to protecting their health, securing their livelihoods, and safeguarding their dignity. At the same time, Fellows emphasized that technology alone is not enough. Personal interaction is and will always be essential, especially in communities where trust in institutions is low. AI should therefore complement people, not replace them.