Let’s be honest for a minute. We've all been hearing the buzz about AI in the insurance world. It’s in every webinar, every industry email, and probably every other meeting you’ve had this month. And if you're like me, there's a little voice in the back of your head wondering, "Is this new tool a helper... or a replacement?"
It’s easy to dismiss it as just tech hype. But then something big happens that makes you sit up and pay attention. And that’s exactly what just happened out in California.
Governor Gavin Newsom signed an executive order to officially start preparing the state’s workers and businesses for the massive changes AI is bringing. This isn't some think tank report; this is the government of the fifth-largest economy in the world saying, "Okay, this is real. We need a plan." And for those of us in the insurance industry, this is a signal we can't afford to ignore.
So, What's California Actually Doing About AI?
When you hear "executive order," it can sound a little intimidating, but the idea here is pretty straightforward. California isn't trying to ban AI or stop progress. Instead, they're trying to get ahead of the curve.
Think of it like seeing a big storm on the weather radar. You don't just sit and wait for it to hit; you start boarding up the windows and making a plan. That's what this order is. It directs the state to start figuring out:
- The real risks and benefits: What are the actual dangers of AI in the workplace? How can we use it for good without causing chaos?
- Creating some ground rules: They'll be developing guidelines for how state agencies can use AI safely and ethically.
- Preparing the workforce: This is the big one for us. The order kicks off a process to study AI's impact on jobs and figure out how to train people for the future.
It’s a massive undertaking, and frankly, it’s about time. For a while, it felt like the technology was moving at light speed while the rest of us were just trying to keep up. This is a sign that leadership is finally catching up to reality.
Let's Be Real: This Hits Close to Home for Insurance
Now, you might be thinking, "That's interesting, but it's a California government thing. What does it have to do with my insurance job in Ohio or Florida?"
Everything.
Because while the government is talking about potential disruption, it's already happening in our own backyard. Just look at the recent news from Acrisure, one of the big players in the brokerage world. They announced they were cutting around 2,250 employees. And the reason they gave? They specifically cited "advances in technology and AI."
That’s not speculation. That’s a direct line drawn between AI implementation and job losses.
It’s not hard to see why. So much of what we do in insurance—from underwriting and data analysis to processing claims and answering basic customer questions—involves tasks that AI is getting incredibly good at. It can sift through mountains of data in seconds to assess risk, automate claim approvals for simple cases, and power chatbots that handle routine inquiries 24/7.
This isn't a sci-fi movie anymore. The technology is here, and companies are already using it to become more efficient. The Acrisure news is just one of the first big, public examples of what that efficiency can look like in terms of staffing.
Is This a 'Panic Button' Moment or an Opportunity?
Okay, so it’s easy to read all this and feel a wave of anxiety. I get it. Nobody likes to hear that their job might be changing or, even worse, disappearing. But I honestly don't think it's time to hit the panic button.
I see this as more of a wake-up call. It's a prompt for us to get smart and strategic about our careers.
Think back to when computers first started showing up in insurance offices. I remember people worrying that all the filing clerks and typists would be out of a job. And yes, some of those specific roles did change or disappear. But computers didn't eliminate the need for people. They created a need for different skills—people who could use spreadsheets, manage databases, and communicate via email.
I believe we're at a similar crossroads with AI. It will absolutely automate some of the repetitive, data-heavy parts of our jobs. But it can't replace the human element that is so critical to insurance.
AI can’t sit down with a grieving family to explain a life insurance policy with genuine empathy. It can’t navigate a complex, multi-party commercial liability claim that requires negotiation and creative problem-solving. And it can’t build the kind of long-term trust with a client that makes them feel truly protected.
That’s our superpower.
What Should We Be Doing Right Now?
The California executive order is a sign that the world is changing. The Acrisure news is a sign that it's changing for us. So, what do we do? We don't just wait and see. We adapt.
Here’s what I think makes sense for anyone working in insurance today:
- Get Curious, Not Scared: Instead of avoiding the new AI-powered software your company rolls out, dive in. Learn how it works. Figure out what it’s good at and where it falls short. Become the go-to person who understands how to use the tool to get better results.
- Double Down on Your Human Skills: Focus on the things AI can't do. Sharpen your communication, practice active listening, and get better at complex problem-solving. These "soft skills" are about to become the most valuable assets you have.
- Think Like a Consultant: Your job isn't just to process a claim or sell a policy anymore. It's to be an expert advisor. The more you can provide insight, strategy, and genuine counsel to your clients and colleagues, the more indispensable you become.
Look, nobody has a crystal ball. We don't know exactly what an insurance agency or a claims department will look like in 2035. But what we do know is that change is the only constant.
California’s move is a big deal because it puts an official stamp on this conversation. It’s forcing us all to confront the future of work head-on. And in our industry, that future is one where technology handles the routine, freeing up the best and brightest humans—people like you and me—to handle the things that truly matter.
