How can AI NOT change insurance?

Replace "AI" with "software" or "data mining".
The core of being an insurer is assessing risk so it can be priced properly.
Data mining is nothing new in this context. There are potentially lots of individual observations, but only so many predictive dimensions/variables. I doubt having lots of hidden network levels can offer much accuracy beyond what any good programming team could manage already.

If all insurance firms use the available data to about the same level of accuracy, it doesn't change the competitive landscape at all.
If some companies can use the available data to assess risk better than the others, those companies will do very much better.
So the most important point is that you definitely want to be invested in a company among those that use it best.
Doing the data mining well is a very big deal, but using a specific shiny new buzzword for it seems less of a big deal.

The newer deep models might have more impact in honing the advertising copy than in assessing underwriting risk.
So I agree it will change the insurance business : )

You might be right about the potential for improving fraud detection, though in some ways that's just the flip side of risk assessment.
Better than the UK post office has managed it, one would hope.

Jim

(doing large scale data mining using neural networks, among other things, in/since the 1990s)