The application of AI is transforming insurance operations across every domain, including underwriting, claims, customer experience, distribution and risk management | Photo credit: Andrei Popov
“The transition of AI in life insurance from a test and learn phase to a strategic catalyst for change has taken hold in our industry,” said Nilesh Parmar, Chief Operating Officer of Generali Central Life Insurance. business line.
“This technology allows us to achieve business results both faster and more accurately in a way that is highly personalized and contextual. Across the customer lifecycle, AI facilitates optimized onboarding journeys, value-based service delivery, personalized engagement and transparency, ultimately leading to trust and wallet sharing,” he said.
In distribution, AI nudges and interventions are extending the longevity of business relationships and improving productivity, while providing needs-based advice in business practice.
“Additionally, AI breaks down language and accessibility barriers as AI tools in many languages and easy-to-use surfaces bring customers and distributors closer to their insurers through AI-generated tools. The future of life insurance lies in technology-enabled human engagement where AI complements rather than replaces the advisor,” Parmar added.
The application of AI is transforming insurance operations across every domain, including underwriting, claims, customer experience, distribution and risk management.
Tata AIA Life Insurance Company has deployed a Gen AI-powered Underwriting Rule Engine (URE), designed to make life insurance purchasing easier, faster and more transparent for every consumer. When a consumer applies for a policy, URE immediately analyzes their data, including medical history and lifestyle information, and compares it to pre-programmed rules to assess risk.
Based on this analysis, it generates a real-time risk assessment and approves or rejects the application, eliminating the need for manual intervention and significantly speeding up processing. There is also AI-powered reflexive questioning during telemedical exams to collect accurate health data, reducing the need for physical tests and minimizing delays.
AI is also being used in general insurance, especially health and car insurance, by some companies to offer customized premiums by analyzing personal habits and driving patterns. “The data collected from mobile phones and digital healthcare devices can help analyze the behavioral patterns. We are working on designing operational models to integrate Gen AI and big data into product design and pricing,” said MD and CEO of a private insurance company.
WORKSTREAMS
According to Sachin Panicker, Chief AI Officer at Fulcrum Digital, insurers are redesigning their workflows to integrate AI and improve efficiency and profitability.
“We have seen insurers taking an AI-native approach achieve remarkable results, such as premium growth of 10 to 15 percent and up to 40 percent faster customer onboarding,” Panicker said.
Fulcrum Digital’s FD RYZE Infinity Agentic AI platform helps automate complex workflows, make real-time decisions, and collaborate across functions.
Insurers also use Underwriting Agentic Solutions that reduce processing time from days to minutes. Likewise, claims automation agents, intelligent document processing, and AI sales tools improve accuracy, productivity, and customer engagement.
While AI players are now focused on developing fully autonomous insurance agents that can handle standard policies end-to-end and dynamically adjust prices based on real-time data, insurers are exploring the integration of human interfaces and regulatory guidelines into product design and other processes.
Published on November 7, 2025
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