Artificial intelligence (AI) is causing widespread change across the whole of society, and the group insurance sector is no exception. The good news is that the latest AI insurance innovations stand to benefit employers and employees alike, by increasing efficiency, lowering costs, and improving insights and efficiencies. Read on as we outline 6 key applications of AI in group insurance in 2025.1. Preventing problems before they ariseGroup insurance plans increasingly go hand-in-hand with employee health and wellness programmes. It’s about prevention being better than cure, helping to keep premiums down over time.YuLife’s groundbreaking Preventative AI platform uses a combination of real-time health data, behavioural science, and the power of dynamic engagement to reshape how risk is understood, managed, and improved.Designed to continuously analyse a wide range of health and behavioural data, Preventative AI can identify potential risks early and recommend personalised interventions, enabling users to make small daily changes that can have a significant long-term impact.Ultimately, AI in the insurance industry is accelerating the shift towards customised preventative health.2. Providing invaluable health insightsYuLife has form in the AI field, and before Preventative AI, there was YuScore, the first AI-powered health and wellbeing metric that could predict the risk profile of a business. Launched in 2023, YuScore centres on the YuLife app, which tracks and rewards employees for participating in activities such as walking and meditation. This algorithm anonymises the valuable data that emanates from employee activity and provides the company with a suite of tools for gaining insights. In this way, YuLife makes it easy for management to assess the health and wellbeing of its employees, and measure the effect that various initiatives are having—as well as rank themselves against competitors and industry benchmarks. Specifically, YuScore enables companies to boost the health and wellbeing of their workforce over time, which not only improves morale and productivity, but also helps to keep premiums low over the long term. 3. Simplifying administrationThanks to AI, group insurance management is becoming much less of an administrative burden on employers and HR teams. AI insurance is enabling companies to simplify cumbersome reporting, compliance, billing and other responsibilities. Chatbots can handle common inquiries from staff. And process automation can streamline mundane tasks, such as sending eligibility updates to insurers. Additionally, AI in the insurance industry can capture and parse forms, invoices, and other documents required—saving substantial manual effort. All this is helping to keep costs down, and enabling HR departments to deliver better insurance benefits for less.4. Accelerating underwriting and enrolment Applying for and renewing group policies traditionally involved lengthy paper applications, medical questionnaires and convoluted underwriting procedures. But AI insurance is increasingly helping to automate these manual components and modernise processes for HR teams and group members alike. Typically, AI chatbots expedite information collection. Algorithms then ingest volumes of structured and unstructured data to instantly evaluate risks and eligibility for various coverages, rather than relying on human estimates. This approach slashes underwriting and renewal cycle times while still allowing for prudent, human decision-making. 5. Personalising insurance policiesAI in the insurance industry enables providers to tailor their products to the specific needs and preferences of different customer segments. By analysing demographic data, lifestyle patterns and behavioural insights, AI algorithms can identify emerging trends, anticipate evolving customer demands, and offer personalised insurance policies. AI in insurance can design customised packages with flexible coverage options, premium rates, and value-added services. Moreover, AI-powered recommendation engines can suggest relevant insurance products to groups based on their characteristics and risk profiles, enhancing cross-selling opportunities and boosting customer satisfaction. We know, for example, that Millennials are more likely to embrace AI in the insurance industry than Baby Boomers.6. Curbing fraudulent group claimsFraud and abuse of Group Health Insurance, Dental Insurance, and Life Insurance have the unfortunate effect of raising prices across the board. So, anything that can help reduce this criminal activity has to be welcome.AI insurance is well placed for detecting fraudulent claims at scale, with a high degree of accuracy. Typically, unsupervised anomaly detection models learn normal claim patterns. Outlier claims raising flags undergo review, while suspected fraud cases are escalated to specialised human investigators. With so many moving parts across group plans, AI assimilation of subtle clues within complex information catches way more fraud than human auditors, curbing unnecessary payouts and keeping costs down for everyone.The transformative impact of AI in group insurance is undeniable. AI insurance is revolutionising administrative processes, providing invaluable health insights, accelerating underwriting and enrolment procedures, personalising insurance policies, and curbing fraudulent claims. These advancements not only streamline operations for insurers but also enhance the quality and accessibility of insurance services for employers and employees alike.As we look ahead, the continued integration of AI in the insurance industry promises to further transform the sector, fostering innovation, efficiency, and customer-centricity. If employers and insurers want to stay competitive, adapt to evolving market trends, and deliver superior outcomes for all stakeholders involved—they have to embrace these technological advancements with open arms.About YuLife.YuLife is working to reimagine the insurance industry by protecting lives, rewarding living and inspiring life. We’re on a mission to transform traditional insurance into a life-enhancing experience each employee will value and use daily. How does it work?Our award-winning app uses behavioural science and game mechanics to reward your people for living well while offering protection in case of crisis. And with our top-rated employee assistance programme, your team gets access to mental, financial and social support, virtual GPs, nutritionists, life coaches and more to help them live their best lives.Because we believe that your employees should benefit from their insurance from day one — and that wellbeing should be accessible every day, for everyone.Request a demo for your team today.