AI, especially GenAI is transforming the India's insurance industry and productivity gains have scored over 30% according to a new report.
The new report How Insurers Can Supercharge Their Strategy with AI found that insurers who are using AI in underwriting are seeing up to 36% efficiency gains by using both structured and unstructured data more effectively.
The report produced by Boston Consulting Group (BCG) reveals that in customer service, tools such as AI-powered knowledge assistants have led to over 30% boost in productivity, while also improving service quality. In claims processing, AI has helped resolve up to 70% of simple claims in real-time, reducing costs by 30% to 50% 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.
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.
BCG India leader insurance practice Pallavi Malani said GenAI is reshaping every part of the insurance business. She said 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.”