GenAI Driving Major Efficiency Gains In India’s Insurance Sector: BCG Report; Here's How

The report highlights that insurers leveraging AI in underwriting are witnessing efficiency gains of up to 36 per cent, driven by improved use of both structured and unstructured data

The report notes that up to 70 per cent of straightforward claims are now being resolved in real-time using AI

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Artificial Intelligence, particularly Generative AI, is making a significant impact on India’s insurance industry in 2025, delivering productivity improvements of over 30 per cent, according to a new report by Boston Consulting Group (BCG) released on Friday.

The report highlights that insurers leveraging AI in underwriting are witnessing efficiency gains of up to 36 per cent, driven by improved use of both structured and unstructured data. In customer service, AI-enabled knowledge assistants have enhanced productivity by more than 30 per cent, while simultaneously raising service quality standards.

AI is also strengthening claims processing. The report notes that up to 70 per cent of straightforward claims are now being resolved in real-time using AI, reducing processing costs by 30–50 per cent and significantly improving the customer experience.

In IT operations, AI-powered automation tools are helping insurers cut cloud migration timelines in half, while also achieving cost savings of around 30 per cent, further boosting operational efficiency.

Despite these encouraging developments, the report points out that a large number of insurers remain in the experimental phase. Many are still conducting pilot projects and have yet to scale their AI initiatives across the organisation.

GenAI Is Reshaping The Insurance Landscape

Pallavi Malani, India Leader for BCG’s Insurance Practice, noted that GenAI is reshaping the insurance landscape at every level—from underwriting to claims, customer service, and IT. However, she emphasised that while insurers in India are actively testing multiple AI-based use cases, full-scale adoption remains limited.

To unlock AI’s full potential, insurers must look beyond just adopting new technologies, Malani said. She further added that they need to integrate AI into business strategy, redesign processes, and prepare employees for transformation from the very beginning.

The report highlights that insurers who align AI investments with clearly defined business outcomes and focus on high-impact areas are establishing a competitive edge in an increasingly technology-driven industry.