How insurance brokers are using AI, and what clients want to know

Few technologies have divided opinion in insurance the way artificial intelligence (AI) has. For some, it is exactly what the industry needs to clear the backlog of manual work that plagues a broker's day. For others, it feels like a threat to the jobs built around that work.

When AI is used the right way, it takes the repetitive, administrative work off a broker's plate, the stuff that quietly eats up hours every day. Tasks that once took hours get compressed into minutes. That time goes back to the broker so they can focus on being a trusted advisor to their clients, building those solid client relationships that lead to better client loyalty and retention.

That's the promise. What it looks like in practice is a different question, and the people best placed to answer it are the ones doing the work. We sat down with insurance brokerage Surex, based in Magrath, Alberta, to hear how AI actually shows up in their day, what it changes for their team, and what their clients want to know.

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Does AI replace the insurance broker?

The short answer is no. When AI is applied well, licensed brokers stay in control, reviewing what it produces and making the final call. AI gives them faster access to information, but it doesn't replace the judgment and expertise the role requires.

Matt Alston, COO & Co-Founder at Surex, frames it simply: "AI is a great tool for advisors to help them in their day, like a personal assistant."

For Alston, AI is there to assist people, not to stand in for human judgment or accountability. That distinction matters more in insurance than most industries. Brokers are entrusted with protecting their clients' most valuable assets. The margin for error is small, and the consequences of getting it wrong can be financially devastating. The approach that works keeps a licensed broker in the loop, reviewing AI outputs and making the final call.

"AI is there to assist the advisor in providing the best possible service and providing clients with quick access to information. It does not replace the need for an advisor to work with the customer to ensure their insurance needs are met," he says.

For Alston, a real person in the process isn't optional. No two policies are the same, and no AI can fully understand a client's specific needs. "There is so much nuance to each individual case that requires a human to help with the decision-making process. We will not require all customers to work with any AI and will always have advisors to help our clients," he adds.

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How are brokerages actually using AI today?

Findings from the Insurance Bureau of Canada (IBC) and other organizations point to AI changing how the industry operates. At the brokerage level, that change shows up in daily workflows. The gains come from optimizing how the work gets done, not from cutting the people who do it.

Here are a few areas where AI is doing the heavy lifting:

• Administrative support: AI categorizes documents and compares policies in seconds, which cuts the margin for error that creeps into reviewing complex paperwork.
• Email triage: It sorts incoming email and routes each message to the right person, and it flags the urgent ones so they don't sit unread.
• Renewal reviews: It catches premium increases, coverage changes or potential gaps before a policy renews so a broker can raise them with the client in advance.
• Online chat: Chatbots answer basic insurance questions around the clock so clients aren't waiting on business hours for simple information.
• Predictive analytics: It flags renewals at risk of leaving and highlights monoline clients who could be cross-sold an additional line, making them less likely to walk.
• Retention and personalization: Personalization and retention analytics help make sure clients receive information and recommendations that actually apply to them.

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What do clients worry about when brokerages use AI?

Data privacy and protection matter to any company bringing AI into its workflow, and Alston is direct about what that requires. When you set AI up for your team or hand it a workflow, you need guardrails in place from the start.

The most common questions we hear from clients include:

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Is my data safe?

Clients want to know their personal and financial information, including any personally identifiable information (PII), isn't being fed into a system they don't control or understand. It is a fair concern. Many people assume that anything entered into an AI-powered tool is being shared with or used to train publicly available AI platforms. That is not how licensed, purpose-built insurance technology works.

"Using an approved platform that we have specifically licensed allows for Surex to control how data is used and accessed. We can prevent the data we have from being accessed outside of our licensed platform," Alston explains.

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Is AI setting my rate?

Clients worry the technology might generate false information or apply bias in pricing through unfair algorithms, so clearing that up matters too.

"We do not use AI to generate a price or make the decision on pricing. Pricing is always determined by the (insurance) carrier based on the information we provide about the risk being insured and each carrier's individual price book," he confirms.

He adds that AI can give a general approximation of price based on existing policies, though it never determines the final number. That will never change. Pricing in insurance is carrier driven, policy specific, and dependent on risk factors that require human review. Think of it as a strong indicator of your market options, not a final answer. The quotes still need to be properly vetted by a licensed broker before anything is presented to a client. The technology takes away that initial legwork of figuring out which market is worth exploring, but the licensed professional still owns the decision.

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Will I know when I'm talking to AI?

Clients want to know when they're dealing with a person and when they're not. That's a fair expectation, and brokerages that are upfront about it tend to build more trust, not less.

"I believe it is important that it is clear to clients when they may be interacting with an AI agent, for example when it is an AI chatbot," Alston says.

Transparency sits alongside data privacy and human oversight. Being open about how AI is used, including when, where, and why, is what keeps clients confident in the answers they're getting.

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What successful AI integration looks like

A successful transition comes down to responsible use and a clear understanding of what the technology is actually there to do. Alston advocates for AI when it's applied well, but he's firm that human interaction remains a core part of the job.

"I believe it is important that there is contact with a human in the process, to review and discuss insurance coverage and options (in our case). That way clients know that someone is looking out for them and is getting them the best solution for their needs," he states.

AI is never going to be perfect, and frankly it shouldn't need to be. It is not here to replace people. It is here to make their work a little easier, take away the manual repetitive tasks, and free up the time that brokers need to do what they do best. Like any tool, the results show up when an expert team is the one using it. Technology works best when it supports the people using it.