'Insurers Must Embrace Tech, Partner With InsurTechs, Drive Mindset Change to Stay Ahead'

Have you ever noticed that buying insurance has become as simple as ordering food online or booking a ride? What was considered fiction just a few years ago has become a reality. Technological advancements, digitisation, data analytics, AI/GenAI and the Agentic revolution are at the heart of this transformation in the insurance industry.

According to industry experts, the insurance technology (insurtech) space is set to transform traditional insurance models over the next five years. The focus will be on personalised, specialised, niche and accessible insurance products. AI-driven customer outreach, underwriting, dynamic pricing and real-time claims automation are fuelling the growth of insurance products and their value chain. Policyholders’ preference for one-click access to products and services is driving this shift.  

With so much time on screens and just scrolling on social sites, we can miss big and small things we need to do, if we do not set up alerts. Think about being on a flight to another country and remembering you did not get travel cover. To prevent such slips, insurance groups use AI aids to help their clients better. These tools let insurers see what their clients need and give them tailored help. For example, by looking at life-style analytics, insurers can learn about a person’s health and habits and create personalised products just for them. 

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Transforming the insurance landscape

Insurance companies use new technologies to enhance services and interact with their customers. API-first platforms, low-code or no-code tools and blockchain can speed up claims processing and reduce fraud. Collaborating with other businesses will also help create tailored insurance solutions to address customers’ needs. 

Companies at the forefront of this transformation help traditional insurers pivot to InsurTech models. Using AI, ML and data analytics expertise, these companies enable insurers to improve customer engagement, reduce costs and increase efficiency.

AI-driven analytics

Many insurance companies use telematics data to provide usage-based insurance that encourages safe driving habits. GenAI and Agentic AI can also be used by companies to analyse policy documents and help customers understand their coverage. 

These tools and technologies can also make the claims process easier, reduce the need for surveyors and improve client convenience. This results in a much better experience for customers while purchasing insurance. 

To keep up with the game, insurers need to be quick in checking risks, put together many products and offer instant purchasing options. Yet, big power comes with big duty. Insurers must mix a personal touch with rules on data safety. To do this, they set up data rules and ensure that AI analytics are simple, clear and fair. This is the key to gaining customer trust and meeting the rules set by those in charge.

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The path forward 

Agentic AI, GenAI and predictive modelling will keep growing, turning the purchase of an insurance policy into more than just a one-time event. Future systems will respond to changing situations and needs. They will provide instant documentation while following the rules that protect consumers. What seemed far off is now in reach.

Insurance firms that move fast to adopt new technology and put customers first will do well in this new scene. The new technology will also help them make faster decisions pertaining to M&A, consolidation and business strategies.

To stay competitive, insurers need to try new things and test out ideas. They must put money into fresh tech, work with InsurTech newcomers, make new fixes and push for a mindset of change in their teams.

The insurance world is set for a big tech shift. As this journey starts, insurance companies must consider whether they can use technology to offer personalised, accessible and customer-focused solutions. Are they ready to provide financial stability for their policyholders and the country? Their response to this question will affect their role in the growth of Viksit Bharat.

Debashish Banerjee is Partner at Deloitte India.