Insurance is already "AI-powered"...insurance companies employ statisticians to build prices, and they have been using low-cost distribution since the 90s.
Speaking generally, insurance was one of the first industries to deploy technology effectively in their core business. They are still doing that.
The issue with companies like Lemonade is that they are rebranding the same product as "AI" (afaik, Lemonade is just taking share by offering cheaper prices...doesn't sound quite as appealing as "AI").
Obviously this does vary because retail insurance is usually sold locally but the middle men were eliminated years ago.
First, it was phones. This happened in the early 90s. Then it was internet which was largely finished by the early 2010s. The only exception for this is that online price-comparison websites have added back some distribution costs...but you still need to spend on marketing if you are online (generally speaking, online ads aren't cheap, I know insurers in my market that have moved away from price-comparison/online advertising because of the cost).
There are still plenty of middle men in insurance. There are Carriers, MGA's, Agency Networks/Aggregators, and Brokers.
Large insurance carriers (think Geico, etc) with enough market share (and captive agents) have the vertical integration that eliminates the middle men, but there is a whole world of insurance that most people don't realize each taking their cut.
Speaking generally, insurance was one of the first industries to deploy technology effectively in their core business. They are still doing that.
The issue with companies like Lemonade is that they are rebranding the same product as "AI" (afaik, Lemonade is just taking share by offering cheaper prices...doesn't sound quite as appealing as "AI").