AI is reshaping car insurance

Artificial Intelligence (AI) is starting to reshape the car insurance industry, unlocking new levels of personalisation, efficiency, and accuracy.

From dynamic pricing models to automated claims handling and real-time fraud detection, AI is helping to drive a new era of smarter, data-driven insurance that could benefit both insurers and drivers.

At the centre of this transformation is the implementation of this advanced technology across multiple levels of the insurance value chain.

From analysing connected vehicle data to streamline policy creation, to enabling real-time fraud detection, supporting electric vehicle (EV) adoption, and enhancing customer engagement, AI is starting to redefine how insurers manage risk, personalise products, and deliver proactive, data-driven services.

The impact of AI in motor insurance is beginning to be felt across several key areas:

• Smarter risk assessment and pricing: AI enables precise underwriting based on individual driving behaviour, not just demographics.
• Faster, more efficient claims: Intelligent automation speeds up the claims process, improving accuracy and reducing costs.
• Advanced fraud detection: AI tools can identify unusual patterns and flag suspicious activity more effectively.
• Improved customer engagement: Real-time feedback and personalised insights offer a more transparent and interactive insurance experience.
• Predictive analytics: AI can help identify high-risk behaviours before accidents happen, supporting proactive driver interventions.
• Support for EV adoption: AI helps insurers adapt to the different usage patterns and risk profiles of electric vehicles.

Connected car data plays a critical role in enabling AI-driven innovation across the insurance sector. Trakm8’s comprehensive connected insurance solutions provide insurers with real-time, high-quality driving data, laying the foundation for advanced AI applications in pricing, risk management, and customer engagement. By delivering accurate behavioural analytics, vehicle health insights, and mileage tracking, Trakm8 helps insurers implement smarter, usage-based policies that are more efficient and tailored to the needs of today’s digital-first drivers.

As insurers face growing pressure to innovate, cut costs, and improve customer experience, AI offers a powerful opportunity to transform traditional models. Trakm8 is already supporting insurers across the UK with the tools to make faster, data-driven decisions, reduce risk exposure, and meet the evolving expectations of modern policyholders.

Adam Gooch, Managing Director of Insurance at Trakm8, commented, “AI is no longer a future trend in the insurance industry. It’s helping insurers move from reactive models to proactive and predictive ones that benefit both the insurer and the customer. At Trakm8, we’re supporting this shift by combining connected vehicle insights with advanced AI analytics to help insurers make faster, smarter, and fairer decisions.”