The danger of AI coverage analysis

The Beltex team has seen an influx of AI in the insurance industry, especially in the MSP channel. From stand alone coverage analyzers to human agents leaning heavily on AI, the AI rush is real.

Did you know? An unlicensed person/MSP using a coverage analyzer tool to discuss or present with a client is a major violation of insurance regulations in most if not all states. For example in Texas it is a third degree felony.

What is the real world impact? The first takeaway is that insurance is more complicated than most people realize. Even if AI can analyze a standalone policy, there are compounding factors such as other contracts, policy overlap and compliance requirements. One of the common gaps the Beltex team finds when working with policyholders is insufficient coverage required by their clients.

AI analysis in cyber insurance struggles to keep up with the rapid changes in policy language. One recent example is the increased amount of “pay on behalf of” language in cyber policies. Pioneered by Coalition, this is quickly becoming a baseline, and Beltex is advocating this coverage for all our clients. Multiple carriers have added this coverage in the 2nd half of 2025, and common AI tools do not realize it is quickly becoming standard.

Recently a carrier underwriter recently complained to the Beltex team about “AI powered” agencies struggling to understand or recognize these changes in policy language. Mixing policy language, dulling agents’ understanding of insurance, and leaving significant gaps in contractual requirements versus an educated agent.

How can AI be properly leveraged? The answer is simple - as a quick search tool, thinking of it as an “artificial intern”. Use it to find certain parts of your policy or contractual requirements, and line them up side by side for a real human to compare. Trust but verify.

And if your agent’s answer to everything is “let me plug it into my AI”, then it is probably time to find a new agent.