Verisk faces high AGI disruption risk because its analytics serve knowledge workers (actuaries, underwriters) performing exactly the statistical modeling tasks AGI excels at, though its proprietary industry-wide datasets provide a meaningful but potentially erodible moat.
Verisk Analytics is a leading data analytics and risk assessment company serving the insurance industry. The company provides proprietary data, predictive analytics, and decision-support tools that help insurance companies price policies, assess risk, detect fraud, and streamline claims processing. Following the sale of its energy and financial services segments, Verisk is now a pure-play insurance analytics company with deep data moats built over decades of industry data collection and standardization.
Verisk's customers are almost exclusively insurance companies - property & casualty (P&C) insurers, reinsurers, insurance brokers, managing general agents (MGAs), and Lloyd's of London syndicates. The company serves most of the top 100 US P&C insurers. Secondary customers include government agencies, mortgage companies, and environmental risk assessors.
Verisk provides data analytics, risk assessment models, and actuarial tools primarily to the insurance industry. AGI could perform actuarial analysis, risk modeling, underwriting assessment, and claims analysis directly — potentially better than Verisk's existing models. If AGI can ingest raw data and produce superior risk assessments, Verisk's curated models and analytics become a less necessary intermediary layer. Verisk's customers are insurance companies, which employ large numbers of actuaries, underwriters, and claims analysts — knowledge workers who analyze risk data. If AGI automates underwriting and claims processing, insurers need fewer knowledge workers and potentially fewer third-party analytics tools. However, insurance companies themselves serve a fundamental need (risk transfer) and will continue to exist.