Intel co-founder Gordon Moore observed in 1965 that the number of transistors on a microchip would roughly double every two years — a trend known as Moore’s Law. This exponential growth has driven dramatic increases in computing power, making today’s computers tens of thousands of times more capable than those of the mid-1990s. Yet, in contrast, efficiency gains in the insurance industry have been far more modest.
For specialty insurance intermediaries, this lack of operational efficiency growth is both a challenge and an opportunity. Those who embrace digital transformation can streamline operations, improve profitability, and deliver superior agent and customer experiences.
The digital imperative: data explosion and connectivity
We live in an era of hyper-connectivity. IoT (internet of things) devices are expected to more than double in the next ten years, surging from 20 billion today to 55 billion by 2035.1 Data creation has exploded — from 2 zettabytes in 2010 to an estimated 180 zettabytes today.2 For specialty intermediaries, this data deluge is a goldmine. When harnessed effectively, it enables better underwriting, risk assessment, and product innovation.
For brokers and carriers, the implications are profound. IoT-generated data — from telematics in vehicles to smart-building sensors — can provide real-time visibility into exposures, enabling more precise pricing and proactive risk mitigation. Advanced analytics and AI tools allow insurers to move beyond historical data, identifying emerging trends and tailoring coverage to individual behaviors. As digital ecosystems evolve, those who embrace data-driven decision-making will not only improve operational efficiency but also deliver more personalized, responsive insurance solutions.
AI and automation are game changers
AI is at the heart of this transformation. Modern platforms can:
- Streamline submissions: Data input is automated from documents and pre-fill applications, reducing errors and saving time.
- Enhance underwriting: Real-time eligibility checks and automated risk classification accelerate decision-making.
- Leverage external data: Insights can be pulled from third-party sources — including social media, legal databases, and APIs — to fill gaps and validate information.
- Optimize pricing and compliance: AI systems can automate rating, pricing, and regulatory requirements, including surplus lines tax calculations.
These capabilities not only improve efficiency but also reduce reliance on scarce underwriting talent, simultaneously increasing scalability while ensuring consistency.
But technology is not just about speed; it’s about smarter risk management. For example:
- Behavioral analytics: Smartphones now collect driving data that can reconstruct accidents, reducing fraud and improving pricing accuracy.
- Safety monitoring: Existing surveillance systems can be integrated with AI to detect unsafe behaviors on job sites, proactively preventing losses.
Such innovations allow specialty intermediaries to offer value-added services, strengthening relationships with agents and insureds.
The road ahead
The age of AI is here, and specialty intermediaries can put themselves at the forefront of this revolution. What feels like a competitive advantage today will soon become table stakes. The message is clear: digitize now or risk being left behind. By embracing AI, automation, and data-driven insights, specialty intermediaries can unlock new growth, improve profitability, and deliver unparalleled value in an increasingly complex market.
At our upcoming Peak Performance Summit, January 26-28, 2026, at the Montage Deer Valley in Park City, Utah, we will take a deep dive into how best-in-class specialty intermediaries are adopting technology. Please reach out should you have any questions.
