The report reveals that 45% of insurance workflows are now AI-driven, which minimizes manual intervention and reduces errors. Almost 48% of customers receive their policies within 15 minutes, a significant change from the previous 4-hour wait.
This transition signifies a remarkable enhancement in operational efficiency and customer experience.
AI has resulted in a 14-fold increase in the Early Claims Factor, mainly attributed to improved early fraud detection in term and savings plans.
“AI enables us to cater to each customer uniquely — from identifying fraud to assisting first-time buyers in their native languages,” stated Saurabh Tiwari, Chief Technology Officer at Policybazaar.
Key advancements propelled by AI:
- Over 30% of initial queries are now handled by AI-powered chatbots, rising from 15% last year.
- Resolution turnaround time (TAT) has decreased by 15%.
- Customer satisfaction (CSAT) levels have reached 94%.
- AI-based ticket tagging directs support tickets with an accuracy exceeding 84%.
- Daily, over 500,000 hyper-personalized nudges are sent out, increasing engagement and intent-to-buy by 20%.
Accelerated issuance redefines the buying experience
AI has significantly reduced issuance times. Between February and March 2025, 48% of customers received their policies in just 15 minutes, compared to a mere 1.3% in January, before AI was implemented.
AI boosts fraud detection and claims management
In term insurance, AI now flags 11% of cases for potential fraud, while this figure stands at 16% for savings plans. By identifying these anomalies early, insurers can expedite the processing of legitimate claims, the report highlights.
Fostering inclusive access through regional languages
To broaden access, AI support is now offered in over nine Indian languages, complemented by tools like voice-to-text and screen readers. These advancements assist customers in Tier 2 and Tier 3 cities, as well as visually impaired and elderly users, in navigating their insurance journeys independently.
Contextual support enhances conversions
Policybazaar’s beta-stage generative AI bots simplify complex insurance products into easily understandable language. This contextual support has resulted in a 5–8% increase in conversions during the discovery phase, the company reported.
“AI is shifting insurance from a reactive service to a proactive experience,” Tiwari commented, emphasizing that it addresses challenges in speed, access, and comprehension — “responsibly, transparently, and always centered around the customer.”
