Artificial Intelligence, particularly Generative AI, is making a significant impact on India’s insurance industry in 2025, delivering productivity improvements of over 30 per cent, according to a new report by Boston Consulting Group (BCG) released on Friday.

The report highlights that insurers leveraging AI in underwriting are witnessing efficiency gains of up to 36 per cent, driven by improved use of both structured and unstructured data. In customer service, AI-enabled knowledge assistants have enhanced productivity by more than 30 per cent, while simultaneously raising service quality standards.

AI is also strengthening claims processing. The report notes that up to 70 per cent of straightforward claims are now being resolved in real-time using AI, reducing processing costs by 30–50 per cent and significantly improving the customer experience.