K V Dipu - Senior President  & Head - Operations & Customer Service,

Bajaj Allianz General Insurance Co. Ltd.

Imagine planning a road trip. Initially, you’re the driver, using a paper map (traditional insurance operations). Then, GPS enters the scene, giving you directions (AI-Gen – automation and AI-generated insights). But soon, self-driving cars take over, not just guiding you but making real-time decisions based on traffic, weather, and even your favorite coffee stops (Agentic AI – autonomous decision-making). That’s the journey AI is taking in the insurance world.

For decades, AI in insurance was like a smart assistant—analyzing risk, detecting fraud, automating customer queries. But now, Agentic AI is stepping into the driver’s seat, making proactive, context-aware decisions that redefine underwriting, claims, and customer experience. It’s not just assisting humans—it’s thinking, adapting, and optimizing on its own.

AI-Gen: The Foundation

AI-Gen, or generative AI, transformed insurance by automating underwriting, streamlining customer service, and personalizing policy recommendations. Remember those chatbots that could answer policy questions or AI-driven fraud detection systems? They were the warm-up act. AI-Gen made the industry faster and more efficient, but it still needed human oversight. It was like having a GPS—you got the directions, but you had to drive.

Even with AI-Gen, insurance processes took weeks for complex claims and days for simple ones. Now, with Agentic AI, we're talking about claims being settled in minutes, or even instantly in some cases.

Agentic AI: The Game Changer

Enter Agentic AI, the insurance industry’s self-driving powerhouse. It’s not just about automation; it’s about autonomy. Here’s what it’s bringing to the table:

• Underwriting Without Humans – Agentic AI can analyze vast amounts of data in real time, adjusting premiums dynamically. A customer’s fitness tracker, real-time driving behavior, or even climate data can fine-tune policy pricing instantly. Some insurers using AI-driven models have reduced underwriting costs by 30%.
• Proactive Claims Management – Imagine AI detecting a natural disaster, pre-filing claims for affected policyholders, and initiating payouts before they even report damages. With parametric insurance models, some insurers are already processing 50% of weather-related claims automatically.
• Fraud Prevention on Autopilot – No more after-the-fact fraud detection. Agentic AI monitors transactions, flags anomalies, and stops fraudulent activities before they happen. Global estimates suggest that 10% of all insurance claims are fraudulent, costing the industry billions—AI is changing that.
• Hyper-Personalized Customer Journeys – AI no longer waits for customers to reach out. It nudges them at the right time—offering travel insurance when they book flights, suggesting home insurance when property values change. Studies show that AI-driven personalization has boosted customer retention by up to 25% in some markets.

 The Big Question: Do We Still Need Humans?

Absolutely! Agentic AI is a powerful ally, not a replacement. Insurance professionals will shift from processing routine claims to handling complex cases, designing new products, and providing empathetic customer support. Think of it like an airline pilot—most flights are on autopilot, but a human captain is always there for critical moments.

Already, AI is handling over 70% of customer interactions in some leading insurers, but when things get tricky—say, a disputed claim or a complex business policy—humans step in to navigate the gray areas where empathy and judgment matter most.

 What’s Next? The Future of AI in Insurance

• AI-Powered Risk Prevention – Instead of just insuring risks, companies will prevent them using AI-driven predictive insights. Imagine AI detecting signs of cyber threats and recommending security measures before an attack even happens.
• Smart Contracts & Blockchain Integration – Seamless, automated claims settlement without disputes. This could cut processing times from weeks to seconds.
• Voice-Activated & Emotionally Intelligent AI – AI that understands customer sentiment and tailors responses accordingly. Some insurers are already piloting AI that detects frustration in a customer’s voice and routes calls to a human agent instantly.

 Final Thought: The Road Ahead Looks Exciting!

Much like that road trip analogy, we’re still on the journey. AI started as a passenger, became a navigator, and is now taking the wheel—but human judgment remains the ultimate co-pilot. The insurance industry isn’t just adapting to AI; it’s evolving with it.

The future of insurance isn't about replacing policies—it’s about making protection smarter, faster, and more accessible. AI is helping insurers move from reactive to proactive, from claims to prevention, and from standardization to personalization. So, the real question is: How soon will AI predict your needs before you even realize them? If AI can get you the perfect insurance plan at the perfect moment, then one thing’s for sure—this road trip is going to be one thrilling ride!