AI transforms insurance with faster policies and personalized service
AI is revolutionizing insurance by speeding up policy issuance and offering personalized customer experiences, according to a Policybazaar report.
Artificial Intelligence (AI) is transforming the insurance industry, making policy issuance faster and more efficient. According to a report by Policybazaar, 45% of insurance workflows are now handled by AI, with 48% of customers receiving their policies within 15 minutes—a significant improvement from the previous four-hour wait.
Key Highlights:
- Speed and Efficiency: AI has eliminated long processing delays, reducing policy issuance time dramatically. Online inspections and AI-driven workflows enable instant renewals, even for lapsed policies.
- Customer Support: 30% of first-contact queries are now handled by AI chatbots, leading to a 15% drop in resolution turnaround time. AI-driven ticket-tagging engines route customer queries with 84% accuracy.
- Proactive Service: Saurabh Tiwari, CTO at Policybazaar, notes that AI shifts insurance from a reactive service to a proactive experience. Companies can now anticipate customer needs, simplify complex products, and issue policies quickly.
- Personalization: Over 3 million messages are sent daily, including 500,000 hyper-personalized nudges based on location, age, policy stage, and digital behavior. This tailored approach has improved engagement and long-term retention.
- Fraud Detection: AI flags 11% of term insurance cases and 16% of savings plans for potential fraud, accelerating legitimate claims and building trust.
- Regional Reach: AI-powered support is available in nine languages, helping insurers penetrate India's hinterlands.
Tiwari emphasizes that AI bridges historic gaps in speed, access, and understanding, enabling unique customer experiences. From fraud detection to multilingual support, AI is reshaping the future of insurance.
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Dr. Lisa Kim
AI Ethics Researcher
Leading expert in AI ethics and responsible AI development with 13 years of research experience. Former member of Microsoft AI Ethics Committee, now provides consulting for multiple international AI governance organizations. Regularly contributes AI ethics articles to top-tier journals like Nature and Science.