The insurance industry has significantly transformed since the advent of large language models. Agentic AI–technology that autonomously achieves user-set goals–is set to reshape how insurers design products, implement administrative processes, and interact with customers.

Unlike traditional AI, which requires pre-programming, agentic AI exhibits autonomy, adaptability, and decision-making capabilities, enabling action with minimal human intervention. These unique attributes are set to redefine the insurance industry, starting a necessary evolution that will boost operational efficiency, reduce costs, and deliver hyper-personalised customer experiences.

Revolutionising Decision-Making with Agentic AI

Agentic AI enables the development of independent “agents” that perceive their environment, analyse complex data and take purposeful action. Unlike reactive, traditional AI tools, these systems are uniquely dynamic, learning from real-time data and adapting responses autonomously. Once deployed, agentic AI evolves independently and autonomously responds to live data. Where traditional, generative AI offers insights, agentic AI goes further, making quicker, more intelligent decisions.

Agentic AI can automatically handle complex customer requests. For example, suppose someone asks to “insure a new car”. In that case, agentic AI can request the necessary documents and details in an engaging chat format, analyse a wide range of customer data to identify the best product offering, prefill account applications, and file biometric verification, streamlining a traditionally tedious process.

Agentic AI in Insurance: Transforming Risk Assessment and Underwriting

Traditional underwriting models often depend on static data and manual analysis, leading to decision-making informed by outdated data. In contrast, agentic AI can integrate a wide range of data sources, including live telematics, social media history and behavioural insights, and open banking data to assess risks in real-time dynamically. It enables insurers to craft personalised policies that are more accurate and competitive in the marketplace.

The independent adaptability of agentic AI also allows insurers to anticipate and respond to black swan events without constant human monitoring and supervision. Insurers leveraging agentic AI can adjust policies in regions prone to extreme weather events and react to sudden geopolitical shifts in real time.

Elevating Customer Experiences Through Personalisation

Following the insurance industry’s universal adoption of customer-facing digital platforms, insurers focus on personalisation to gain an edge over competitors. By leveraging advanced machine learning algorithms and real-time data analysis, agentic AI can better understand individual customer needs, preferences and risk profiles. Virtual agents, powered by agentic AI, combine this complete picture of a customer with independent decision-making to guide prospective customers through policy selection, offering recommendations based on individual circumstances. Agentic AI-enabled systems can also anticipate life changes, such as marriage, a new home or a growing family, proactively suggesting relevant policy updates and fostering deeper trust and engagement.

Re-imagining the Claims Resolution Process

When a customer experiences an insurable event, traditional claims processes often involve lengthy paperwork, multiple touchpoints and significant stress. Agentic AI systems can quickly collect incident details, utilise computer vision for damage assessment and cross-reference numerous data sources to verify claim legitimacy, reducing processing times from days or weeks to hours.

The transformative potential of agentic AI extends beyond speed as it fundamentally reimagines the customer claims experience. By providing transparent, real-time updates, Agentic AI automatically calculates fair settlements and offers accessible customer assistance, replacing a potentially frustrating interaction with a streamlined and low-stress customer journey. Insurers using agentic AI can also tailor communication styles, anticipate customer needs, and provide personalised guidance throughout the claims resolution.

Combating Fraud with AI Agents

Insurance fraud is a persistent and costly issue, with over £1.1 billion in fraudulent claims detected in the UK in 2023, a year-on-year increase of 4%. Traditional AI has become an essential tool for insurers attempting to turn the tide on insurance fraud, analysing datasets and identifying subtle patterns, detecting fraudulent claims, and alerting operators. Agentic AI enables insurers to reduce the administrative overhead of assessing and actioning fraud detections while protecting the insurers’ bottom line without delaying claims processing.

A Paradigm Shift in Insurance

Agentic AI is a fundamental shift from passive AI to proactive, goal-driven artificial intelligence. By embracing it, insurers benefit from a trusted partner, not just a tool,  enabling faster, more innovative, and more customer-centric solutions. The time to act is now, as the early adopters of agentic AI will define the next era of the insurance industry.

About the author: Teo Blidarus is an expert in banking, insurance, and embedded finance, and is passionate about building the future of financial technology alongside a strong ecosystem of customers, partners, and executive leaders. A serial entrepreneur, he has founded and scaled several tech firms, which now serve Fortune 500 customers in 30 international markets. In 2017, he founded FintechOS with the mission to simplify financial technology for all.