GenAI, Agentic AI Reshape Insurance Industry
MWN-AI** Summary
The integration of generative AI (GenAI) and agentic AI is transforming the insurance industry, providing carriers with a competitive edge through enhanced efficiency, decision-making, and customer satisfaction. According to the latest ISG Provider Lens report, leading insurance enterprises are rapidly adopting these technologies across various operational functions. This shift from traditional, manual processes to automated systems is seen in areas such as claims processing, underwriting, and customer support.
GenAI is streamlining the collection and analysis of data, extracting insights from documents like emails and PDFs to facilitate faster and more accurate risk assessments. This not only shortens turnaround times but also enhances compliance by reducing the need for extensive manual review. In the claims process, GenAI accelerates workflows by understanding claimant narratives and leveraging image analysis to estimate damages, effectively decreasing the claims cycle from weeks to days.
Conversational AI is also enhancing customer service operations by tailoring interactions to specific customer needs, thereby improving engagement. Meanwhile, agentic AI systems can autonomously manage entire underwriting processes and claim lifecycles, allowing human staff to focus on complex and strategic aspects of risk management and customer relations.
The report highlights that AI adoption is expected to evolve, with agents likely handling many routine operations in the next three to five years. Although AI is making significant inroads into the industry, it remains clear that human judgment, empathy, and relationship management are irreplaceable cores of the insurance sector. This transition toward AI-enhanced efficiencies underscores the industry's commitment to stay competitive and responsive in a rapidly evolving market landscape.
MWN-AI** Analysis
In the rapidly evolving insurance landscape, generative AI (GenAI) and agentic AI are poised to fundamentally reshape industry operations. According to a recent ISG Provider Lens report, major insurers are transitioning from traditional, manual processes to sophisticated AI-driven systems that enhance efficiency, accuracy, and customer experience. This shift creates significant opportunities for carriers who adopt these technologies strategically.
First, organizations leveraging GenAI can automate the analysis of structured and unstructured data, improving underwriting accuracy and reducing turnaround times. By efficiently extracting necessary information from diverse sources, insurers can create comprehensive risk profiles that inform decision-making. With the capability to process claims at unprecedented speeds, GenAI can drastically cut the time required from weeks to mere days, enhancing customer satisfaction and compliance.
Additionally, agentic AI systems are revolutionizing customer interactions. These autonomous agents enhance service quality by managing the entire policy lifecycle and handling complex claims with minimal human oversight. This capability allows insurers to focus on fostering relationships with policyholders while addressing more complex risks and strategic initiatives.
As insurers embrace these capabilities, they must also invest in data modernization and establish governance frameworks to ensure responsible AI deployment. Monitoring for bias and enhancing explainability will be critical to build customer trust and regulatory compliance.
For investors and industry stakeholders, companies leading in GenAI and agentic AI services—such as Capgemini, Cognizant, and TCS—represent promising opportunities. As the digital transformation progresses, organizations that prioritize technological investment and strong customer relationships stand to gain a decisive edge in the competitive insurance space. As we look to 2025 and beyond, those who effectively navigate this AI-enabled landscape will likely redefine the future of insurance.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Carriers adopt AI systems to achieve market advantage by improving efficiency, decision-making, customer satisfaction, ISG Provider Lens ® report says
Leading insurance enterprises are implementing generative AI and agentic AI throughout most of their operations, gaining a crucial competitive edge in speed, pricing, accuracy and customer experience, according to a new research report published today by Information Services Group ( ISG ) (Nasdaq: III ), a global AI-centered technology research and advisory firm.
The 2025 ISG Provider Lens ® global Insurance Services — Strategic Capabilities (Insurance GenAI and Agentic AI Services) report finds that insurers are moving from manual, document-heavy workflows to automated processing of claims, quotes, policy documents and other elements of daily operations. AI is enabling new kinds of competitors while helping incumbent carriers strengthen customer relationships and more quickly respond to new market trends.
“The embedding of AI technology in the insurance industry has quickly matured from experiments to production-ready implementations across the insurance value chain: underwriting, claims, customer experience, fraud detection and risk management,” said Dennis Winkler, director, Insurance, at ISG. “This powerful trend points toward increasing efficiencies, autonomous operations, hyperpersonalized insurance products and stronger relationships with policyholders.”
Underwriting teams are using generative AI to extract structured and unstructured data from emails, PDFs and images to populate systems automatically, the report says. Models trained on historical data generate preliminary assessments that highlight gaps and improve risk assessment. This automation reduces manual review and shortens turnaround times as AI analyzes financial data, inspection findings and external data to form complete risk profiles.
When claims are filed, GenAI accelerates processing by understanding claimants’ descriptions, extracting essential details and initiating workflows, ISG says. Image models assess damage by analyzing photographs to calculate cost estimates, while natural language processing analyzes narratives for inconsistencies and anomalies that may indicate fraud. Together, these capabilities can reduce cycle times from weeks to days and improve compliance.
Customer service operations are adopting conversational AI that improve routine interactions by understanding context, the report says. These systems address policy questions, prepare renewal notices, generate personalized explanations and support follow-up actions. Carriers report improved engagement as AI produces tailored content that aligns with each customer’s needs and comprehension level.
Insurers are implementing agentic AI systems that can independently pursue objectives, adapt to changing conditions and coordinate across systems without continuous oversight, ISG says. Agents carry out the full underwriting process from submission to quote for defined risk classes. They can also manage entire claim lifecycles for losses, including verifying coverage and approving settlements within authority limits, for losses that are not complex.
“In three to five years, AI agents are likely to handle many routine insurance operations while staff members focus on complex risks, strategic relationships and innovation,” said Ashish Jhajharia, lead author of the report. “Insurance involves judgment, empathy and relationship management, which remain distinctly human capabilities.”
The report also explores other trends affecting AI adoption in insurance, including major investments in data modernization and the growing need for governance, bias testing, explainability and privacy controls to establish confidence in AI.
For more insights into the insurance enterprise challenges relevant to GenAI and Agentic AI, plus ISG’s advice for addressing them, see the ISG Provider Lens ® Focal Points briefing here .
The 2025 ISG Provider Lens ® global Insurance Services — Strategic Capabilities (Insurance GenAI and Agentic AI Services) report evaluates the capabilities of 28 providers across two quadrants: GenAI — Development and Deployment Services and Agentic AI — Development and Deployment Services.
The report names Capgemini, Cognizant, EXL, Genpact, HCLTech, Infosys, Kyndryl, NTT DATA, Persistent Systems, TCS and WNS as Leaders in both quadrants. It names LTIMindtree as a Leader in one quadrant.
In addition, Tech Mahindra is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in both quadrants. LTIMindtree and Tiger Analytics are named as Rising Stars in one quadrant each.
In the area of customer experience, Sutherland is named the global ISG CX Star Performer for 2025 among Insurance GenAI & Agentic AI Services providers. Sutherland earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program , the premier quality recognition for the technology and business services industry.
Customized versions of the report are available from Genpact , Kyndryl , NTT DATA , and WNS .
The 2025 ISG Provider Lens ® global Insurance Services — Strategic Capabilities (Insurance GenAI and Agentic AI Services) report is available to subscribers or for one-time purchase on this webpage .
About ISG Provider Lens ® Research
The ISG Provider Lens ® Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage .
About ISG
ISG (Nasdaq: III ) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251210645229/en/
Press Contacts:
Laura Hupprich, ISG
+1 203-517-3100
laura.hupprich@isg-one.com
Julianna Sheridan, Matter Communications for ISG
+1 978-518-4520
isg@matternow.com
FAQ**
How does Information Services Group Inc. III define the competitive advantages gained by insurers utilizing generative and agentic AI according to their recent report?
In what ways does Information Services Group Inc. III illustrate the transition from manual to automated processes in insurance operations?
What role do data modernization and governance play in the success of AI adoption in insurance as highlighted by Information Services Group Inc. III?
How does Information Services Group Inc. III assess the future landscape of insurance operations with the continued integration of AI technologies?
**MWN-AI FAQ is based on asking OpenAI questions about Information Services Group Inc. (NASDAQ: III).
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