India’s insurance sector is at a pivotal moment. With a vast underinsured population, a mobile-first digital economy, and bold national goals like Insurance for All by 2047, the opportunity to reimagine insurance delivery is real.
But while AI promises speed, scale, and personalization, it is not a shortcut to this end, and it is certainly not a plug-and-play solution.
To truly unlock AI’s potential, insurers must first build the right foundations.
The Real Challenge: Scaling Insurance Without the Right Infrastructure
Imagine trying to serve millions of potential customers across India with manual processes, fragmented data, and limited digital infrastructure. You want to offer protection to more people and businesses, but the systems in place make it slow, expensive, and difficult to scale.
For carriers and insurers, the intent to help is there. But the tools? Not yet. Instead, insurers face an uphill battle against:
- Paper-heavy onboarding, underwriting, and claims
- High cost-to-serve in remote areas
- Fragmented data systems
- Limited ability to personalize products or communications
- Regulatory complexity
These are not just operational hurdles; they are barriers to trust, efficiency, and growth.
The Inflection Point: Why AI Is Not the First Step—It’s the Next One
India’s insurance sector is growing fast. With a gross written premium exceeding US$130 billion and an 11% CAGR from FY2020 to FY2023 (McKinsey, The Potential of India’s Insurance Industry), the momentum is undeniable. But growth alone does not guarantee transformation.
AI can help, but only if insurers have:
- A modern, cloud-native core platform to deliver insurance digitally
- Structured, reliable, and accessible data to fuel intelligent decisions
- Automated workflows that reduce friction and improve speed
- Robust governance to ensure AI is explainable, ethical, and compliant
Without these foundations, AI risks becoming a shiny peripheral. It’s impressive in theory but disconnected from the reality of insurance delivery.
Done Right: How AI Can Accelerate India’s Insurance Goals
When built on the right platform, AI becomes a strategic enabler. It can:
- Streamline underwriting with intelligent decisioning
- Automate claims for faster, fairer resolutions
- Personalize products and pricing based on real-time data
- Scale customer service and support
But success depends on thoughtful implementation. Duck Creek’s experts emphasize:
- Designing AI around the insurance journey, not just tech capabilities
- Using a human-centric approach with oversight and transparency
- Involving cross-functional teams, from actuaries to CX experts
- Prioritizing explainability and trust, especially in pricing and claims
- Focusing on outcomes, not just efficiency
India’s Advantage: A Digital Ecosystem Built for Innovation
India’s digital-first infrastructure, powered by initiatives like Aadhaar, UPI, and India Stack, gives insurers a unique edge. With widespread smartphone adoption and real-time data access, the country is well-positioned to build scalable, AI-ready insurance systems.
But the message is clear: do not rush into AI. Build the modern foundation first.
Conclusion: A Smarter Path Forward
India is not just catching up; it is poised to lead. But leading is not about skipping steps. It is about building smarter, stronger systems from the ground up. With Duck Creek’s modern platform as the foundation, insurers can integrate AI in ways that are scalable, responsible, and transformative.
Looking to lead? Let’s talk. Connect with Duck Creek today to explore practical strategies, avoid common pitfalls, and unlock the full potential of AI in your insurance business.
