Try renewing your motor insurance policy; in most cases, you will get the policy document within a few minutes. Even if your policy has lapsed, chances are you will still be able to renew your policy in quick time thanks to online inspections. No more waiting or physical visits to insurance offices. Artificial Intelligence is at work and is increasingly streamlining practices and workflows, in turn allowing for instant policy disbursements. 

According to a report by insurance distribution platform Policybazaar, 45 per cent of insurance workflows are now handled by AI, and 48 per cent of customers now get their insurance policy within 15 minutes, compared with four hours earlier.

"This transformation has removed one of the most persistent friction points in insurance: long processing delays that discouraged purchase or led to drop-offs," said Policybazaar.

The report indicates that 30 per cent of first contact queries are now attended by AI chatbots, and there has been a 15 per cent drop in resolution turnaround time.

AI is not just handling more queries—it’s handling them smarter, says Policybazaar. AI-driven ticket-tagging engines now route incoming customer tickets to the right agent with over 84 per cent accuracy, factoring in query type, history, and urgency, it adds.

AI is transforming insurance from a reactive service to a proactive experience, according to Saurabh Tiwari, chief technology officer at Policybazaar. 

"Today, we can anticipate what a customer might need, explain complex products in simple terms, and issue policies in minutes—all without sacrificing accuracy or trust," he said. 

With AI, companies have now been able to bring in more personalisation. More than 3 million messages are now sent daily, and over 5 lakh hyper-personalised nudges are sent based on location, age, policy stage and digital behaviour. This move away from generic marketing to tailored advisory has improved engagement as well as long-term retention, says Policybazaar. 

The AI-driven prompts aligned with life milestones like tax planning or childbirth have also boosted the intent-to-buy policy by 20 per cent, it added. Furthermore, AI-powered support is now available in over nine languages and is helping insurance companies penetrate deeper into India’s hinterlands.

"We see AI as a way to close historic gaps in the system—gaps in speed, access and understanding. Whether it’s flagging a fraudulent claim early, guiding a first-time buyer in their native language, or helping a young family choose the right plan with timely, relevant nudges – AI allows us to serve each customer uniquely," said Tiwari. 

AI is radically shaping the area of claims. In term insurance plans, for instance, nearly 11 per cent of cases are flagged by AI for potential fraud and in insurance savings plans, it’s around 16 per cent. According to Policybazaar, by flagging these cases early, insurers can accelerate the processing of legitimate claims and strengthen customer trust.