GenAI Drives Over 30% Productivity Gains in India’s Insurance Industry
Artificial Intelligence (AI), particularly Generative AI (GenAI), is making waves in India’s insurance industry, delivering over 30% productivity gains across various departments, according to a new report by Boston Consulting Group (BCG).
Artificial Intelligence (AI), particularly Generative AI (GenAI), is making waves in India’s insurance industry, delivering over 30% productivity gains across various departments, according to a new report by Boston Consulting Group (BCG).
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Underwriting Efficiency Enhanced by Up to 36%
The report reveals that insurers leveraging AI in underwriting are witnessing efficiency gains of up to 36%, thanks to the better utilization of both structured and unstructured data. This has streamlined decision-making processes and risk assessments.
AI-Powered Customer Service Tools Boost Performance
In customer service, AI-driven tools like intelligent knowledge assistants have improved productivity by more than 30%, while also elevating the overall service quality delivered to policyholders.
Real-Time Claims Processing and Cost Reduction
AI is revolutionizing claims processing by automating up to 70% of simple claims in real-time, resulting in a significant 30–50% reduction in costs. This innovation is providing faster resolutions and smoother experiences for customers.
Smart Automation in IT Yields Big Savings
In IT operations, smart AI tools are helping insurers cut cloud migration timelines in half and save nearly 30% in operational costs, according to the report.
Indian Insurers Yet to Scale AI Projects
Despite these advancements, many insurance companies in India remain in the pilot phase of AI adoption. BCG’s India Leader–Insurance Practice, Pallavi Malani, noted that while Indian insurers are experimenting with multiple AI use cases, most are not scaling them up to production levels.
Aligning AI with Business Strategy for Success
The report emphasizes the need for insurers to go beyond just data and technology. To truly harness the power of AI, they must consider business impact, process transformation, and employee readiness from the beginning.
Future Belongs to Forward-Looking Insurers
Insurance providers who strategically align AI investments with business goals and focus on high-impact areas like underwriting, claims, and customer service are emerging as industry leaders. These forward-looking companies are setting the pace for the rest of the sector.
