GenAI, Agentic AI Reshape Insurance Industry

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.