GenAI driving over 30 pc productivity gains for India`s insurance industry
Artificial Intelligence (AI), especially Generative AI, is transforming the India's insurance industry this year, with productivity gains of over 30 per cent, a new report said on Friday.
Insurers who are using AI in underwriting are seeing up to 36 per cent efficiency gains by using both structured and unstructured data more effectively, according to the report by Boston Consulting Group (BCG).
In customer service, tools such as AI-powered knowledge assistants have led to over 30 per cent boosts in productivity, while also improving service quality.
In claims processing, AI is helping resolve up to 70 per cent of simple claims in real-time, reducing costs by 30 to 50 per cent and offering a smoother experience for customers.
Even in IT, AI is proving useful as smart automation tools are helping insurers cut their cloud migration timelines in half and save 30 per cent in costs, the report mentioned.
Despite the growing potential of AI, the report found that many insurance companies are still stuck in pilot phases and have not fully scaled their AI projects.
However, a few forward-looking insurers are using AI as a competitive advantage, particularly in underwriting, claims processing, customer service, and IT operations.
Pallavi Malani, India Leader-Insurance Practice at BCG, said that GenAI is reshaping every part of the insurance business.
She pointed out that while Indian insurers are experimenting with several AI-based proof of concepts, most of them have not yet scaled.
“Particularly in India, we see that insurers are undertaking several proof of concepts but these use cases have not been scaled up,” Malani stated.
To fully benefit from AI, companies must think beyond just technology and data, and include business impact, process changes, and employee readiness from day one.
The report stressed that insurers who align their AI investments with business goals, and focus on high-impact areas, are pulling ahead of the competition.
