Key facts
- Insurers are adopting AI and automation to address a shortage of trained professionals.
- AI is being used to automate claims processing, underwriting, and customer onboarding.
- Productivity improvements of 10-35% are being seen with GenAI interventions.
- Enterprise-wide AI adoption could lead to gains of 30-50%.
- Despite automation, a shortage of skilled professionals is expected to prevent workforce shrinkage.
A shortage of trained insurance professionals is driving insurers to adopt artificial intelligence and automation across core functions, including claims processing, underwriting, and customer onboarding. This shift aims to manage increasing business volumes and enhance productivity without a proportional rise in hiring.
Industry experts note that while the talent pool is large, finding candidates adept at complex processes, compliance, and tech-enabled workflows is challenging. Consequently, technologies are being deployed to improve accuracy and efficiency, rather than to replace existing roles. Automation is streamlining tasks such as processing claims notes, medical histories, and paperwork, while underwriting, KYC, policy renewals, and medical tests are becoming increasingly digitized and AI-driven.
Globally, simple and low-value claims already achieve 60-80% straight-through processing, with India not far behind. Deloitte reports that GenAI interventions are yielding productivity improvements of 10-35% in claims and underwriting, with potential gains of 30-50% for companies with enterprise-wide AI strategies.
Despite these advancements, the insurance business largely remains human-led at the front end, with customers still preferring assisted journeys for policy purchases, as only 2-3% of policies are sold through fully digital channels. However, once a policy is in the system, automated workflows are handling a growing share of processing, including claims powered by GenAI-enabled optical character recognition.
Executives do not anticipate a reduction in the insurance workforce. Instead, the focus is on freeing employees from tedious tasks to allow more client interaction and enabling faster business growth. The existing shortage of skilled insurance professionals in India is seen as a driver for this AI adoption, facilitating expansion without an accelerated hiring process.