How AI Tools Are Revolutionizing the Insurance Sector in India

There has been a great explosion of data over the past several years, leading to a spawning of new technologies such as Artificial Intelligence and Data Analytics. This is affecting all industries. In fact, there is not one industry that is not affected. In particular, the insurance industry is facing massive digital transformation. In fact, India’s insurance companies are going headlong for digital disruption as the country prepares for the Digital India vision.

There are various disruptions taking place in business processes as well as functions. Most industry insiders feel that this trend is expected to pick up in the future. Sophisticated AI and Analytics tools work together with Cloud-based enterprise software for a focused, collaborative, and explorative leveraging and implementation of data. All this is typically leading to drastically improved efficiency—by as much as a magnitude—as well as tremendous growth in revenues. AI tools are assigned tasks that were usually handled by humans till now. And the results have been nothing short of fabulous.

End-to-End Business Processes Being Handled by AI Software

“End to end business processes are being handled by our newly developed AI bot. What once took three days for the most efficient of processes, such as issuance of insurance policies, now takes three hours. In fact, the number has come down to three minutes and we are planning to get it down and closer to real time,” said Tarun Chugh, MD & CEO at Bajaj Allianz Life Insurance, at a recently held event.

Chugh was explaining how Bajaj Allianz undertook the digital transformation journey. Citing examples, he talked about the newly developed chat bot which was proving to be an astounding success.

“The Artificial Intelligence (AI) enabled and self-learning tool have registered 4 lakh queries and completed 45,000 transactions, all within only 45 days,” he said while bolstering his claims for a digital transformation in the insurance sector.

Operation and Business Models Evolving Due to Emergent Technologies: Assocham Study

In fact, the operating and business models of insurers are evolving due to disaggregation of insurance value chain, according to a report by industry body Assocham. The study says that technology trends such as AI, machine learning, blockchains and robotic process automation (RPA) have significant potential to streamline insurance operations and enhance customer experience.

In India and across the world, insurance companies have begun capitalizing on the potential of such technologies in order to improve user experience as well as address the demands and expectations of the new-age customer. The report also said that the technology has made it easier to manage sourcing of interactive machine learning as well as artificial intelligence tools in cases where the major ask has been customer acquisition and services.

Four insurance companies, including Birla Sun Life, ICICI Lombard, PNB MetLife and HDFC Life are already leveraging emergent enterprise technology for either sales or customer support. According to the report, two new-age non-life insurers, Acko and Digit Insurance, have already received the approval from insurance regulator IRDAI to conduct business in the country. The surprising thing is that both the digital disruptors bank on their technology platforms for offering customers a different experience and boost revenues.

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Muqbil Ahmar

Muqbil Ahmar is a tech evangelist, environmentalist, women's rights advocate, editor, and founder of He writes on ...

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