GenAI, Agentic AI Reshape Insurance Industry

Key Terms

generative ai technical

Generative AI is a type of computer technology that can create new content, like text, images, or music, on its own. It’s important because it can produce realistic and useful material quickly, which could change how we create art, write stories, or even develop new products. Think of it as a smart robot that can invent and produce things almost like a human.

agentic ai technical

Agentic AI refers to computer systems that can make their own decisions and take actions without needing someone to tell them what to do each time. It's like giving a robot a degree of independence to solve problems or achieve goals on its own, which matters because it could change how we work and interact with technology in everyday life.

natural language processing technical

Natural language processing is a technology that enables computers to understand, interpret, and respond to human language in a meaningful way. It allows machines to analyze large amounts of text, like news articles or social media posts, to identify patterns, trends, or sentiment. For investors, this means gaining faster insights from vast information sources, helping to inform smarter decisions in a rapidly changing world.

fraud detection technical

Fraud detection is the set of methods and tools used to spot false, misleading, or illegal financial activity—such as fake transactions, manipulated reports, or identity theft—before it causes major harm. It matters to investors because catching fraud early protects a company’s cash, reputation, and legal standing, much like a smoke detector alerts you to a small fire before it spreads; failures in detection can lead to sudden losses, regulatory fines, and plunging share prices.

Carriers adopt AI systems to achieve market advantage by improving efficiency, decision-making, customer satisfaction, ISG Provider Lens^® report says

STAMFORD, Conn.--(BUSINESS WIRE)-- 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

Source: Information Services Group, Inc.