The AI Paradox in Insurance: Building Better Products, Harder to Understand

Some comments here from Dan Schuleman – Co-Founder & CEO of Qumis

“Agentic AI will let carriers manufacture bespoke products at a pace the industry has never seen. What gets less attention is what that speed creates: a flood of novel policy language with no interpretive history behind it.

Standard forms work because they’ve been litigated. Decades of coverage disputes have told us what “occurrence” means, where “arising out of” reaches, and how exclusions interact. That case law is the invisible infrastructure of the insurance contract — it’s what makes coverage predictable. AI-drafted bespoke wording has none of it. Every novel definition, every custom exclusion, every untested grant is a latent dispute waiting for a claim severe enough to surface it.

The downstream effects land on the people who have to operationalize these products. Brokers must compare and place forms with no benchmark and explain to insureds what an untested provision actually covers — while their E&O exposure grows with every ambiguity they miss.

Claims professionals must adjudicate language no court has construed, knowing contra proferentem still runs against the drafter, human or machine. Risk managers inherit portfolios where coverage certainty quietly erodes even as products get more “tailored.”

Bespoke is only valuable if it’s understood. The carriers who win this era won’t just generate novel products faster — they’ll pair that speed with the coverage intelligence to know exactly what their language does before a court tells them.”

Dan Schuleman Bio

Dan Schuleman is the co-founder and CEO of Qumis, a lawyer-built, AI-powered insurtech transforming how insurance professionals read and interpret policies. Before founding Qumis,

Dan was Associate General Counsel at Kin Insurance, where he helped scale the company and navigate complex regulatory environments. He previously practiced insurance coverage law at Am Law 200 firms, advising global insurers on high-stakes commercial claims and coverage
issues. Dan holds a J.D. from the University of Illinois College of Law and a B.A. with honors from Northwestern University.