Future of AIAI

Smarter Claims, Stronger Futures: Redefining Insurance with Agentic AI

By Yasir Andrabi, Global Head of Agentic AI Solutions, Insurance, Genpact

Hurricane season is here, and NOAA is forecasting above-normal activity this year. Coupled with the growing intensity of climate-driven disasters, it’s clear insurers are facing a perfect storm of operational strain and competitive pressure. Claims are surging, customer expectations are climbing, and the pressure to adapt is mounting. Simply put, the old ways of working won’t cut it anymore. 

This isn’t just about managing a higher volume of claims. Insurers are expected to deliver faster, more accurate, and more compassionate responses, all while adopting modern technology. The question is no longer if AI has a role in insurance—but how boldly we can rethink claims processing to meet the demands of a changing world.  

The opportunity in the AI revolution 

Genpact’s global study on scaling AI highlighted a striking truth: while 69% of insurers have deployed AI, many haven’t unlocked its full potential (source:  Genpact study Winds of Change:  How to Scale AI and Build Trust, 2025). Why? Scaling challenges are holding them back, delaying the tangible benefits customers are waiting for. 

But this challenge is also an opportunity. For claims leaders, the AI revolution is a catalyst to go beyond addressing broken promises and to rebuild the system with the customer at the center. By shifting focus from incremental fixes to foundational reinvention, insurers can deliver lasting impact. 

It starts with this question: Are we designing solutions that truly put the customer first? 

Claims are breaking at the seams

The past few years have revealed the fragility of traditional claims processes. Take 2024, for example. The U.S. experienced dozens of natural disasters, from cyclones to droughts and floods, each racking up over $1 billion in damage (source: NOAA National Centers for Environmental Information (NCEI) U.S. Billion-Dollar Weather and Climate Disasters Report, 2024). Claims surged. Systems buckled. Operational inefficiencies left customers waiting when they needed help the most.   

The insurance industry has long relied on manual processes and human triage to handle this complexity. But with disasters growing more severe and frequent, that model simply can’t keep up. The need for adaptability is undeniable. Enter agentic AI.  

So, what is agentic AI?  

Agentic AI is not your usual automation. These are intelligent agents designed to make autonomous decisions based on contextual data. These aren’t simple bots following static rules, but goal-directed collaborators capable of navigating ambiguity, learning from feedback, and taking meaningful actions in real time. 

Think of them as capable collaborators in the claims process. While they’re automating repetitive tasks, they’re also solving problems, navigating ambiguity, and delivering results with speed and precision. 

Reducing friction, one claim at a time  

Claims intake and classification remain some of the most inefficient processes in the insurance value chain. Missing details, inconsistent documentation, and fraud risks create delays and errors at every step. Agentic AI can cut through that complexity.  

An AI agent can triage incoming claims in real time. It can sort requests by severity, route high-priority cases to the right team, and flag suspicious claims for review. When embedded into a cloud-native, API-connected architecture, these agents can integrate seamlessly with existing systems to drive accurate, timely processing. 

Fraud detection also becomes sharper. AI agents can spot patterns and anomalies that would take human reviewers hours or days. They can cross-reference third-party data, identifying fraud without disrupting legitimate claims. With fewer errors and faster resolutions, insurers can finally handle surge events—whether climate disasters or economic shocks—with confidence.  

Reclaiming time and trust in the customer journey 

According to Genpact research, nearly half of insurance customers have experienced challenges during the claims process (source:  Genpact study Winds of Change:  How to Scale AI and Build Trust, 2025), and many say it’s the most frustrating part of their interaction with insurers, underscoring the gaps between insurer investment in AI, execution and actual customer impact.  

However, agentic AI can address these gaps by reducing wait times, simplifying customer communications, and ensuring more transparent resolutions. AI-powered claims workflows restore confidence and build seamless experiences. Customers who feel heard, respected, and supported are more likely to stay loyal. And loyalty, driven by trust, is the foundation of long-term success in insurance.  

Building for an AI-driven future  

Still, the full potential of agentic AI can’t be realized without insurers’ willingness to make a foundational change. Many insurers continue to run core business functions on legacy systems that aren’t compatible with agentic AI. According to Genpact research,  , significant portions of IT budgets are still consumed by maintenance, leaving little room for innovation (source:  Genpact study Winds of Change:  How to Scale AI and Build Trust, 2025).  

Plus, 63% of insurance executives in the research reported operational efficiency as the top benefit of scaling AI. Although productivity gains are a great stepping stone to building momentum, they can limit focus on AI’s potential to drive growth and value by addressing complex decisions based on deep research, technical expertise, and contextual understanding. 

It’s time for insurers to shift the dynamic. That looks like:  

  • Strengthening data foundations: Ensure data is clean, connected, and compliant to power accurate, scalable, and trustworthy AI outcomes. 
  • Prioritizing business outcomes: Focus AI efforts on reducing claims cycle times, improving underwriting precision, and delivering better customer experiences. Measure value by tracking a balanced set of leading and lagging indicators to reflect past performance and enhance future outputs. 
  • Balancing governance and risk with precision: Build flexible AI governance that protects against risk while enabling speed, autonomy, and compliance. Securing data infrastructure must be prioritized and aligned with regulatory and privacy mandates. 
  • Designing for scale and value from the start: Avoid siloed AI efforts by embedding AI into enterprise-wide workflows and across departments built for reusability and resilience. Integrating AI systems into existing platforms allows for a more seamless process. 
  • Investing in talent: AI success requires buy-in and fluency from your people. Create training programs, upskill your teams, and nurture confidence so employees can lead AI projects effectively.  

With these enablers in place, insurers can implement AI systems that can operate effectively across functions, processing claims, updating policies, managing service requests, and even predicting the best actions for customer engagement. 

 Unlocking resilience with AI 

More than speed or cost savings, agentic AI gives insurers the agility to respond to crises and adapt to change. Whether it’s a flood, wildfire, or economic downturn, AI agents bring the data and insights necessary to plan, act, and recover faster.  

Agentic AI strengthens the insurer’s ability to respond quickly, confidently, and at scale. AI agents can help insurers scenario-plan, model exposure risk, and reallocate resources in real time. In short, they bring dynamic, intelligent assistance that flexes with the moment. And during quieter times, AI agents free up human talent to focus on high-value work, like complex personalized case handling and customer coaching. 

The result? A claims system that’s not just efficient but resilient, grounded in intelligence and humanity. 

Solutions of tomorrow, today 

For insurers seeking to future-proof their claims function, it’s time to acknowledge that those who merely adopt AI risk falling behind. Under the pressure of an intensified hurricane season, the real winners will redesign systems by embedding AI into their workflows to build agility and customer-centricity into their DNA. During a disaster, the ability to quickly assess and pay claims allows customers to return to what’s most important in their lives. 

Agentic AI isn’t just a means to innovate. It’s the foundation for an insurance industry that’s prepared for whatever comes next. The winners in the next era of insurance won’t be those who solely adopt AI, but those who build around it, redesigning claims with intelligence, agility, and humanity at the core. For insurers willing to seize this moment, the opportunities are endless. 

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