Generative AI Fuels Over 30% Productivity Surge in India's Insurance Sector
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Synopsis
Artificial Intelligence, particularly Generative AI, is reshaping the insurance landscape in India, driving productivity gains surpassing 30%. Insurers leveraging AI are achieving remarkable efficiency in underwriting, claims processing, and customer service, according to a recent report from Boston Consulting Group.
Key Takeaways
- Generative AI is leading to productivity increases over 30% in India's insurance industry.
- Insurers using AI in underwriting are experiencing efficiency gains up to 36%.
- AI-driven tools are enhancing customer service productivity by 30%.
- AI helps resolve 70% of simple claims in real-time.
- Insurers must align AI investments with business goals for competitive advantage.
New Delhi, April 11 (NationPress) Artificial Intelligence (AI), particularly Generative AI, is revolutionizing the insurance sector in India this year, achieving productivity increases exceeding 30 percent, according to a recent report released on Friday.
Insurers leveraging AI in underwriting are experiencing efficiency improvements of up to 36 percent by utilizing both structured and unstructured data more effectively, as per the findings from Boston Consulting Group (BCG).
In the realm of customer service, AI-driven knowledge assistants have contributed to productivity enhancements of over 30 percent, while simultaneously elevating service quality.
When it comes to claims processing, AI is enabling the resolution of as much as 70 percent of straightforward claims in real-time, cutting costs by 30 to 50 percent and providing a more seamless experience for customers.
AI is also making significant strides in the IT domain, where intelligent automation tools are aiding insurers in halving their cloud migration timelines and achieving 30 percent cost savings, as noted in the report.
Despite the burgeoning potential of AI, the report highlights that numerous insurance firms remain in pilot stages and have yet to fully implement their AI initiatives.
Nonetheless, a select group of progressive insurers are capitalizing on AI as a competitive edge, especially in underwriting, claims management, customer service, and IT operations.
Pallavi Malani, the India Leader for the Insurance Practice at BCG, remarked that Generative AI is transforming every facet of the insurance industry.
She emphasized that while Indian insurers are testing various AI-based proof of concepts, many have not yet achieved scalability.
“In India, it is evident that insurers are conducting multiple proof of concepts, but these use cases have not been adequately scaled,” Malani noted.
To fully harness the benefits of AI, organizations must extend their focus beyond mere technology and data to encompass business impact, process modifications, and employee preparedness from the outset.
The report emphasized that insurers who synchronize their AI investments with business objectives and concentrate on areas of high impact are gaining a competitive advantage.
