Page 43 - The Insurance Times August 2025
P. 43
Fraud Detection premiums, and automated onboarding using facial recogni-
tion or Aadhaar verification are making insurance more
Insurance fraud poses a perennial challenge in India's large
and diverse market, costing billions annually. Indian insur- accessible than ever.
ers are deploying AI-based fraud detection systems that flag Initiatives like the PMFBY (crop insurance) and Ayushman
anomalies using behavioral patterns to reduce fraudulent Bharat (health insurance) have benefited from AI-enabled plat-
payouts. AI combats this issue by analyzing vast datasets forms for faster claim processing and beneficiary identification.
using machine learning algorithms to detect anomalies in-
dicative of fraudulent activity. By processing historical claims The Rise of AI-Driven Insurtechs
data, policyholder behavior, and external information, AI Indiafs vibrant insurtech ecosystem is catalyzing change.
identifies red flags often overlooked by human investigators. Startups are leveraging AI to:
This reduces fraudulent claims, safeguards profitability, and Design usage-based motor insurance
optimizes resource allocation.
Launch instant travel and flight delay coverage
Conversational AI and Self-Service Enable bite-sized insurance via UPI and digital wallets
Conversational AI is fundamentally transforming the Indian Collaborations between traditional insurers and insurtechs
insurance industry, revolutionizing how providers interact are accelerating digital transformation across the board.
with customers, manage claims, and automate underwrit- While the insurtech ecosystem continues to grow, KGiSL is
ing. Powered by NLP, AI virtual assistants offer 24/7 avail- among the first AI-powered players in the market. Its solu-
ability with near-human-like support.
tion, Marvel.ai, is a trailblazer in transforming insurance
A key application is in customer service, where AI-powered operations.
chatbots handle basic inquiries, freeing human agents to
focus on complex issues. This significantly boosts efficiency, KGiSL's Marvel.ai
crucial for India's vast customer base. Marvel.ai enhances fraud detection, streamlines claims
management, and elevates customer experiences. It is more
With rising smartphone penetration, insurers are deploying than just an AI platform; it is a catalyst for innovation.
AI chatbots and voice assistants in regional languages. These Marvel.ai automates and augments business operations,
tools help answer policy questions, guide claim submissions, transforming data into actionable insights through machine
and offer product recommendations. Such initiatives democ- learning algorithms.
ratize access to insurance, especially in Tier 2 and Tier 3
cities, reducing reliance on traditional agents. Ultimately, This generative AI platform drives efficiency and fosters in-
conversational AI is making insurance more accessible and formed decision-making, enabling insurers to stay ahead of
efficient for millions across India. the curve while delivering superior customer experiences.
Predictive Analytics for Customer Reten- What's Next?
As India moves towards Insurance 2.0, we can expect:
tion Hyper-personalized policies powered by Generative AI
In the Indian insurance sector, predictive analytics is trans-
Autonomous claims settlement via Agentic AI bots
forming customer retention through a proactive approach.
By analyzing churn signals, lifestyle shifts, and interaction Voice-enabled rural servicing in local dialects
history, insurers can anticipate customer needs. AI-powered ESG and climate risk modeling for agricul-
ture and catastrophe insurance
This allows them to send timely renewal reminders and of-
fer customized cross-sell and upsell products. Furthermore, Final Thoughts
real-time risk mitigation suggestions can be provided, en-
AI is no longer a gnice-to-haveh but a critical enabler in
hancing customer safety and trust. Ultimately, this sophisti-
India's insurance journey.from urban policyholders to farm-
cated use of AI significantly increases customer stickiness ers in remote villages. With regulatory support, growing
and boosts lifetime value.
digital literacy, and a tech-savvy young population, India is
Building Financial Inclusion poised to lead the way in AI-powered insurance innovation.
AI is instrumental in bridging the protection gap for rural The future of insurance in India isn't just digital.it's intelli-
and low-income populations. Microinsurance, usage-based gent.
The Insurance Times August 2025 39
