The model that does not bind and in not doing so, saves the US economy
We at the AI Value Index wanted quite badly for this to be a case study. Alas, it is but a use case, albeit a critically important one.
Earlier this year, AIG noted in its 2025 Annual Report that it is scaling underwriting with its AIG Assist tool.
The claim: AIG Assist enabled "our underwriters to review more submissions. At Investor Day, we set an ambition of reaching 500,000 submissions in our Lexington business by 2030. As of year-end 2025, we have already surpassed 370,000 submissions, a 26% increase year-over-year. Since we began the rollout to Lexington Middle Market Property, the submit-to-bind ratio improved 35%, reflecting notable productivity gains."
Like me, you may not know why insurance lingo uses the word "bind" to mean "convert" but that is neither here nor there. AIG claims to have improved its conversion of submissions to underwriting into live policies by 35%.
This is exciting stuff. No, really. So exciting that we asked the next logical question. Did AIG fire a bunch of underwriters?
AIG Assist reviews. It does not bind. A person still says yes. That is the model that does not bind, and in not doing so it leaves the underwriter on the desk.
And that is super exciting because, if accurate, it is validation of the possibility that AI will deliver productivity gains without reducing tax revenues due to pesky job cuts.