By Attila Toth, Founder and CEO, ZestyAI
“SaaS is dead.”
With these three words, Microsoft CEO Satya Nadella sparked a global debate, challenging the foundation of enterprise operations. His prediction? AI agents will soon replace traditional SaaS workflows, moving business logic to a dynamic AI layer and leaving legacy tools behind.
For property and casualty (P&C) insurers, this prediction is more than a tech trend—it’s a wake-up call. Carriers have invested heavily in SaaS platforms to modernize underwriting, claims, and risk management. But with AI agents poised to dominate, are these investments like castles built in the sand, vulnerable to the rising tide of AI?
Let’s unpack what Nadella’s claim means for P&C insurers and explore how to prepare for a future where agentic workflows reshape this $2.6 trillion global industry.
From Static Systems to Agentic Workflows
Over the past decade, P&C carriers have focused on modernizing their technology stacks, moving
to SaaS-based systems for policy management including underwriting, claims, and billing. These platforms promise efficiency gains, streamlined workflows, and improved business intelligence. Yet Nadella’s vision points to a future where AI agents bypass these systems altogether, directly interact- ing with data to execute tasks dynamically.
Enter agentic workflows.
Agentic workflows are powered by AI agents—autonomous systems that can analyze data, make decisions, and execute tasks in real-time without rigid reliance on predefined rules or interfaces. Unlike traditional workflows that depend on user interaction, agentic workflows dynamically adapt to the situation, accessing real-time data and leveraging advanced decision models to solve problems creatively.
Let’s Break it Down With Examples:
- Underwriting: Traditionally, underwriters rely on policy management systems to assess risk, manually inputting and analyzing data. In an agentic workflow, an AI agent pulls data from internal and external sources, such as property imagery or weather patterns, and evaluates risk in real time, and proposes pricing autonomously.
- Claims: Instead of adjusters triaging claims by reviewing data and making decisions step by step, AI agents analyze First Notice of Loss (FNOL) data, cross-reference it with historical patterns, flag potential fraud, and recommend payouts or next steps—all in seconds.
Think of agentic workflows as moving from a ‘static map’ to a ‘smart GPS.’ Traditional SaaS systems provide fixed routes, like a printed map or a AAA TripTik, where users must plan and follow a predefined path. In contrast, AI agents function like a GPS that dynamically adjusts to roadblocks or detours, guiding you in real-time to reach your destination more efficiently.
This doesn’t eliminate the roles of underwriters or adjusters—it amplifies them. With agentic workflows, professionals transition from being data processors to strategic decision-makers, supported by AI agents that execute repetitive and analytical tasks.
The question is not if, but how fast this shift will occur. In P&C, where SaaS investments are relatively new, the transition may take time. But the direction is unmistakable, and forward-thinking executives should prepare now.
How Insurance Leaders Can Prepare for the AI Era
The shift to AI-driven workflows brings both challenges and opportunities. To stay ahead, insurance leaders must act now. Here’s how:
1. Build AI-First Architectures
Insurers must prioritize modular, API-driven platforms that enable seamless integration with AI agents. An AI-first architecture treats applications as interchangeable layers rather than static end- points, ensuring adaptability to future innovations without extensive system overhauls.
2. Unify Siloed Data
AI agents thrive on data, yet fragmented, siloed data remains a significant challenge for insurers. It’s not about choosing the “right” database—AI agents can interact with any data store. What matters is creating a unified and federated data structure that breaks down silos and provides AI agents with a cohesive view of organizational information.
CIOs should prioritize data integration, ensuring underwriting, claims, customer, and risk data are accessible across the enterprise. A federated approach bypasses the need for lengthy consolidation projects while enabling AI-driven insights.
3. Engage Regulators Early
AI workflows will only succeed if regulators are on board. Departments of Insurance (DOIs) need to trust the decision-making processes of AI agents and ensure they meet standards for transparency, fairness, and compliance.
At ZestyAI, we’ve worked with state Departments of Insurance across the U.S. to gain approval for our AI models. Building trust with regulators requires proactive engagement, clear communication, and ongoing education. Insurers that lead in this area will not only gain competitive advantages but also shape the regulatory frameworks that govern the use of AI.
4. Pilot Agentic Workflows
Start small, but start now. Deploy AI agents in low-risk areas like claims triage or fraud detection. Early pilots provide valuable lessons and build organizational confidence in agentic workflows.
5. Expand ROI Thinking
AI agents are poised to fundamentally transform operations, requiring a broader perspective on ROI. Beyond traditional metrics like cost reduction or workflow efficiency, consider strategic gains such as:
- Faster speed to market.
- Improved customer satisfaction. - Enhanced risk segmentation.
6. Put Technology Partners to the Test
Carriers should evaluate their SaaS providers on their readiness to transition to agentic workflows. Ask pointed questions: What is their AI strategy? How do they plan to integrate AI agents into their products? - Are they prepared to support modular, dynamic workflows?
The Bottom Line
The future Nadella outlines—a world driven by AI agents—is as disruptive as it is exciting. For P&C insurance executives, it’s a call to action: the technology stack of today may not meet the demands of tomorrow. Preparing now by investing in AI-first architectures, building unified data structures, and engaging with regulators will position insurers to thrive in this new era.
SaaS isn’t dead yet, but the writing is on the wall. The question is, are you ready to embrace the future? Are you building a castle ready to weather the waves?