Generative artificial intelligence (GenAI) is driving efficiency gains of over 30% across India’s insurance industry, according to a new report by the Boston Consulting Group (BCG). The study highlights significant improvements in underwriting, customer service, and claims processing, though many insurers remain in the pilot phase of AI adoption.
Key Findings: AI’s Impact on Insurance
The report, How Insurers Can Supercharge Their Strategy with AI, reveals that insurers leveraging AI in underwriting have achieved up to 36% efficiency gains by optimizing structured and unstructured data. In customer service, AI-powered knowledge assistants have boosted productivity by over 30% while enhancing service quality.
Claims processing has seen even more dramatic improvements, with 70% of simple claims resolved in real-time, reducing costs by 30-50% and streamlining customer experiences. Additionally, AI-driven automation has halved cloud migration timelines for IT operations while cutting costs by 30%.
Challenges in Scaling AI
Despite these advancements, many Indian insurers remain in the experimental stage, with few successfully scaling AI initiatives. Pallavi Malani, BCG India’s leader for insurance practice, noted that while insurers are actively testing AI-based proof of concepts (PoCs), broader implementation lags.
“GenAI is reshaping every part of the insurance business,” Malani said. “In India, insurers are exploring multiple PoCs, but most use cases haven’t yet been scaled up.”
The Road Ahead
The report underscores AI’s potential to revolutionize India’s insurance sector but calls for greater investment in scaling solutions. As competition intensifies, early adopters stand to gain a significant edge in efficiency, cost savings, and customer satisfaction.
For now, the industry’s challenge lies in transitioning from pilot projects to full-scale deployment—a move that could redefine India’s insurance landscape.
Key Takeaways:
Underwriting: 36% efficiency gains from AI-driven data use.
Customer Service: 30%+ productivity boost with AI assistants.
Claims Processing: 70% real-time resolution for simple claims, 30-50% cost reduction.
IT & Cloud: 50% faster migration, 30% cost savings.
Barrier: Most insurers still in pilot phase, yet to scale AI solutions.
Source: Boston Consulting Group (BCG) Report
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