Here's How AIG's AI Push Can Improve Underwriting and Claims Efficiency
American International Group, Inc. AIG is scaling artificial intelligence across underwriting and claims, but the financial impact remains difficult to isolate. The initiative is particularly relevant as the insurance market becomes more competitive and insurers face greater pressure to maintain underwriting margins. These capabilities could improve risk selection, increase underwriting capacity and reduce processing costs, potentially supporting margins as adoption expands.
AIG's clearest evidence of AI's operating impact is in its underwriting workflow. As Underwriting by AIG Assist and Claims by AIG Assist have scaled, underwriters are reviewing more submissions and generating quotes faster. However, the company has not provided comparable quantitative metrics for claims-cycle improvements.
AIG’s broader efficiency metrics are moving in the right direction, although the gains cannot yet be directly linked to AI. General Insurance underwriting income rose 10% year over year to $686 million, while the combined ratio improved 30 basis points to 89.0% and the expense ratio declined 20 basis points to 30.8%. Global Personal showed a sharper improvement, with its general operating expense ratio falling 130 basis points to 13.3% and its combined ratio improving 560 basis points to 92.9%.
These trends point to better operating performance, but more disclosure is needed to determine how much AI is contributing. The key metrics to watch are submission-processing time, quote turnaround, claims-cycle times and productivity as adoption expands. Continued gains alongside measurable improvements in these areas could strengthen the case that AI is translating into tangible financial benefits.
How Are Competitors Faring?
AIG’s Peers in the Finance Space, such as The Travelers Companies, Inc. TRV and Chubb Limited CB, are also leveraging technology and AI to enhance underwriting and claims efficiency.
Travelers has expanded AI across underwriting and claims, including TravelersLLM and its AI Claim Assistant. TRV generated $1.7 billion of total underwriting income in the second quarter, providing a strong operating base for continued technology investments
Chubb is leveraging technology and data to support underwriting and claims efficiency and risk insights. CB reported $1.94 billion in P&C underwriting income in the second quarter, up 18.8%, while its combined ratio improved to 83.8%.
AIG’s Price Performance, Valuation & Estimates
Shares of American International have lost 4.7% over the past year against the industry’s 3.4% growth over the same period.
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From a valuation standpoint, AIG trades at a trailing 12-month price-to-tangible book ratio of 1.06, below the industry average of 1.23. AIG carries a Value Score of A.
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The Zacks Consensus Estimate for AIG’s 2026 earnings is pegged at $8.02 per share, indicating 13.1% year-over-year growth, followed by an estimated 8.7% increase in 2027.
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AIG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
