Pallavi Malani, India Leader – Insurance Practice, BCG said, “Generative AI is reshaping the insurance industry. From underwriting and claims automation to customer service and AI enabled agency channel – we expect AI to structurally change the industry. Particularly in India, we see that insurers are undertaking several proof of concepts but these use cases have not been scaled up.”
New Delhi: The insurance industry stands at a pivotal moment in 2025 and Artificial Intelligence (AI) is no longer an emerging trend as it is a game-changer for the industry, unlocking new frontiers in efficiency, accessibility, and economic growth, said a new report from Boston Consulting Group(BCG).
As many insurers are still stuck in AI pilot mode facing a challenging landscape, BCG’s new report, “How Insurers Can Supercharge Their Strategy with AI”—lays out how a few forward-thinking players are turning AI into a real competitive edge.
Commenting on the findings of the report Pallavi Malani, India Leader – Insurance Practice, BCG said, “Generative AI is reshaping the insurance industry. From underwriting and claims automation to customer service and AI enabled agency channel – we expect AI to structurally change the industry. Particularly in India, we see that insurers are undertaking several proof of concepts but these use cases have not been scaled up.”
“We believe, working business impact backwards and brining process re-imagination and change management into the design from day one beyond tech and data is critical to be able to scale Gen AI use cases and realize business impact,“ added Malani.
Key findings of the report include:
-Underwriting reimagined: Insurers using AI to augment underwriting are seeing 36%
efficiency gains thanks to smarter use of structured and unstructured data.
– Customer service transformed: AI tools like knowledge assistants are driving 30%+
productivity boosts, freeing up staff time and raising service quality.
-Claims automation at scale: AI is enabling real-time resolution for up to 70% of simple
claims, cutting operational costs by 30–50% and vastly improving customer experience.
IT as a growth engine: AI-led “smart migration” is helping insurers cut cloud transition
time by 50% and costs by 30%, while coding assistants and virtual agents are reshaping IT operations.
The message is clear: insurers that focus AI investments on high-impact areas—and align tech with talent and process—are pulling ahead fast.