Insurance operations are document-heavy, rule-intensive, and fraud-exposed, making them well-suited for AI automation. Three cost centers dominate: claims handling (labor, litigation, fraud losses), underwriting (adverse selection from inaccurate risk models), and customer acquisition/onboarding (conversion drop-off from friction). AI applications address all three. Insurers operate under regulatory constraints from state insurance commissioners (US), PRA/FCA (UK), and EIOPA (EU) that govern model explainability and fair treatment obligations, particularly in claims decisions and pricing.