%0 Journal Article
%T Reviewing the New AI Paradigm in Property and Casualty Insurance
%A Muhammad Imran Sajid
%J Open Journal of Applied Sciences
%P 480-500
%@ 2165-3925
%D 2025
%I Scientific Research Publishing
%R 10.4236/ojapps.2025.152031
%X In this paper, we examine the fundamental transformation of Property & Casualty (P&C) insurance through the introduction of Artificial Intelligence. This examination marks the shift from the traditional actuarial methods to a dynamically data-driven approach. Some key innovations include the buzz around Large Language Models (LLMs) for customer interaction, Internet of Things (IoT) enabled risk-monitoring in real time and Machine Learning allowing for automated claims processing. The research highlights the early adopters like AXA, Lemonade and Allianz who are actively leveraging AI to reduce claims processing times by 80% while reducing manual labour and increasing customer satisfaction. The most critical of this transformation is the emergence of roles that act like hybrid strategists. Such professionals combine traditional insurance expertise with acumen in technology. In our paper, we discuss the requirement of how AI demands more than just simple adoption. It needs a comprehensive restructuring of organizational culture, better data infrastructure and better ethical frameworks. Development in Explainable AI (XAI) is also noteworthy for maintaining transparency, handling complex risks and addressing regulatory requirements while alignment with customer trust concerns.
%K Artificial Intelligence
%K Machine Learning
%K Internet of Things
%K Ethical AI
%K Data Privacy
%K Digital Transformation
%K Telematics
%U http://www.scirp.org/journal/PaperInformation.aspx?PaperID=140799