麦肯锡-印度保险行业新赛道：从一场马拉松转型为人工智能驱动的十项全能赛事 Indias new insurance track The marathon becomes an AI-led decathlon

India’snew

insurancetrack

ThemarathonbecomesanAI-leddecathlon

September2026

Thisreportisacollaborativeeffortby

AbhilashSridharan,PeeyushDalmia,

andSudhakarKakulavarapu,with

AashishSharma,AbhishiBhatia,HarshitaBajaj,KamleshAsrani,MadhurimaDhar,RinkeshBinani,SudhanyuVeldurthy,

SumanPaul,andTishaGupta.

Copyright©2026McKinsey&Company.

Allrightsreserved.

Coverimage:©CharlesO’Rear/GettyImages

Allinteriorimages:©GettyImages

CONTENTS

Executivesummary2

1

2

3

4

India’sevolvingmacronarrativeinanageofdisruption14

Structuralgrowthtailwinds,withsignificantheadroomforfurtherdevelopment22

TheAIopportunity—potentialenablersfortransformingtheIndianinsuranceindustry40

Frompilotstoscale—buildingenterprisereadiness

andresilience62

Conclusion70

Acknowledgments71

India’snewinsurancetrack:ThemarathonbecomesanAI-leddecathlon1

2India’snewinsurancetrack:ThemarathonbecomesanAI-leddecathlon

Executivesummary

Indiaisontracktobecometheworld’sthird-largesteconomybytheendofthisdecade,

withnominalGDPexpectedtoapproach$7.3trillionby2030.

1

Thisrecentgrowthhasbeen

accompaniedbyabroaderstructuraltransformationthathasseenanexpansioninformal

participationacrossbanking,payments,taxation,anddigitalservices,offeringamoreconnectedandaccessibleeconomicsystemsupportedbyIndia’sdigitalpublicinfrastructure.These

developmentsprovideafoundationfortheIndianinsurancesector’snextchapterofgrowth,supportedbyincreasingscale,formalization,anddigitalinfrastructure.

InflectionpointforIndianinsurance

However,despiteaccesstobankingandpaymentsandrapidlyexpandingparticipationinformalinvestmentproducts,insuranceadoptionhasnotkeptpacewitheconomicgrowth,creatinga

wideningprotectiongaprelativetoglobalbenchmarks.Forinstance,betweenfiscalyears2017and2025,thenumberofin-forceindividuallifeinsurancepolicieshasremainedessentially

flat,ataround330million(ExhibitE1).

2

Today,India’sinsuranceindustryremainstheonlymajorfinancial-servicessector(amongbanking,assetmanagement,andinsurance)thathasnot

fullybenefitedfromthecountry’sbroaderfinancial-inclusionstory.Thisdivergencebecomesmoreapparentwhenviewedthroughthelensofhouseholdsavings.Betweentheprepandemicandpostpandemicperiods,theproportionofsharesanddebentures(includingmutualfunds)inhouseholdportfoliosrosefrom6.6percentto7.6percent,whiletheshareofprovidentand

pensionfundsgrewfrom18.9percentto20.4percent

3

;incontrast,lifeinsurancefundswerebroadlystableataround18.0percent.

Meanwhile,theneedforfinancialprotectioncontinuestoevolve,potentiallycontributingto

increaseddemand.Risinghealthcarecosts,longerlifeexpectancy,increasinghouseholdassetownership,climate-relatedrisks,andgrowingincomevolatilityareexpandingtherangeofrisksfacedbyIndianhouseholdsandbusinesses.Aseconomicparticipationdeepens,sotoodoestheneedformechanismsthatimprovefinancialresilience.

Additionally,theregulatoryenvironmentcontinuestoevolve,withpotentialimplicationsfor

thesector.Thepaceofmarketentryhasacceleratedsignificantlyfollowingrecentregulatory

reforms.Throughitsvisionof“InsuranceforAllby2047,”

4

theInsuranceRegulatoryand

DevelopmentAuthorityofIndia(IRDAI)hasintroducedmeasuresonimprovingawareness,

accessibility,andaffordability.Reformssuchastheuse-and-fileregime,theExpenseof

Managementframework,andtheBimaTrinityinitiatives(BimaSugam,

5

BimaVistaar,

6

andBimaVahaks7)addressareasaroundenablinginnovation,expandingdistributionreach,andloweringthecostofservingcustomers.

1“India’sGDPsurge:Drivingthegrowthstory,”GovernmentofIndiaPressInformationBureau,August30,2025.

2HandbookonIndianinsurancestatistics2024–25,IRDAI,December2025.

3“DatabaseonIndianeconomy:Table2.1:Depositsofscheduledcommercialbanksaccordingtopopulationgroup,”ReserveBankofIndia,March31,2019.

4“India@100–InsuranceforAll,”IRDAI,May6,2022.

5“BimaSugam–Insuranceelectronicmarketplaceregulations,2024,”IRDAI,2024.

6“CommitteetostudyandrecommendonBimaVahakandBimaVistaar,”IRDAI,October21,2022.

7“BimaVahakguidelines,2023,”IRDAI,2023.

ExhibitE1

India’snewinsurancetrack:ThemarathonbecomesanAI-leddecathlon3

Demataccountsandmutualfundsincreasedbetweenfiscalyears2017and2025.

Accounts,folios,andpoliciesper1,000people(aged15+)

2,316

173

211

Lifeinsurance1

Healthinsurance2

Bankdeposits3

Demataccounts

Mutualfunds4

1,678

28

56

FY2017,numberFY2025,numberCAGR,%

–1.4

5.8

3.6

22.3

15.8

335

33

295

54

1In-forceindividualpolicies.

2Peoplecoveredwithindividualpolicies.

3Individualscheduledcommercialbankdepositaccounts.

4Countofmutualfundfolios.

Source:AssociationofMutualFundsinIndia;HandbookonIndianinsurancestatistics2024–25,InsuranceRegulatoryandDevelopmentAuthorityofIndia,Dec2025;ReserveBankofIndia;SecuritiesandExchangeBoardofIndia;UNWorldPopulationData

McKinsey&Company

Additionally,theSabkaBimaSabkiRaksha(AmendmentofInsuranceLaws)Act,20258

(operationalstartingFebruary2026)hasraisedtheforeigndirectinvestment(FDI)ceilingforinsurersandintermediariesfrom74percentto100percentundertheautomaticroute.

Onthetaxationfront,theGoodsandServicesTaxCouncil(GSTCouncil)decision(effective

September22,2025)eliminatedthegoodsandservicestaxonindividualtermlifeandhealth

insurancepremiums,9reducingannualpremiumoutgobyupto18percentforretailpolicyholdersandmateriallyimprovingaffordabilityforfirst-timebuyers.IRDAI’sInsuranceIntermediaries

(Amendment)Regulations,2026proposecommissiondisclosureandpolicy-taggingnormsforlarge-scaleintermediariesandperiodiccompetencytrainingforsalespersonneltoliftdistributionstandardsasthemarketscales.10

Thisyear,IRDAIintroducedtwomeasuresrelatingtoregulatoryexpectationsaround

transparentcustomerjourneys:first,byincreasingsupervisoryfocusonmitigatingdigital

missellingviatheCentralConsumerProtectionAuthority(CCPA)GuidelinesforPreventionandRegulationofDarkPatterns,andsecondbylinkingremovalofdarkpatternsdirectlytosenior-managementincentives.11

8Foreigninvestorscanownupto100percentofanIndianinsurancecompanyorintermediarywithoutneedingpriorapproval

fromthegovernment,subjecttocompliancewithIRDAIandtheForeignExchangeManagementActguidelines.SeeThe

SabkaBimaSabkiRaksha(AmendmentofInsuranceLaws)Act,2025,IndianMinistryofLawandJustice,December21,2025.

9“ExemptionofGSTonallindividuallifeinsuranceandhealthinsurancepolicies,”DepartmentofFinancialServices,accessedSeptember2026.

10“IRDAI(insuranceintermediaries)(amendment)regulations,2026,”IRDAI,July30,2026.

11“Remunerationtokeymanagementpersons(KMPs),”IRDAI,May25,2026.

4India’snewinsurancetrack:ThemarathonbecomesanAI-leddecathlon

AsofJune2026,IRDAIhasestablishedadedicatedAIworkinggrouptodevelopanindustry-widegovernanceapproachtoaddressAIadoption,oversight,andriskmanagementacrosstheinsurancesector.

12

India’sfinancialanddigitalrailsareincreasinglyinplace,yet,asdiscussed,insuranceadoptionhasnotkeptpace.Overallinsurancepenetrationis3.7percentofGDP,comparedwithaglobalaverageof7.3percent,withtheshortfallconcentratedprimarilyinnonlifeinsurance.

13

The

nextphaseofgrowthwilllikelydependlessonbasicaccessandmoreonproductrelevance,distributionalignment,affordability,andtrust.

Potentialareasforgrowthvaryacrossdifferentsegmentsoftheindustry.India’slifeandgeneralinsurancesectorsareexpandingalongdistincttrajectories,shapedbychangingproduct

mixes,distributioneconomics,andcompetitiveintensity.Inlifeinsurance,premiumgrowth

hasoutpacedpolicyvolumes,market-linkedproductsaregainingshare,andprivateinsurerscontinuetofacepressureondistributionproductivityandprofitability.

14

Ingeneralinsurance,health,motor,andcommerciallinesareevolvingatdifferentspeeds,withstand-alonehealthinsurersemergingasstrongperformersandthe100percentFDIregimelikelytointensify

competition.

15

Bothsectorsmayhavetheopportunitytoimproveproductivity,riskselection,claimsoutcomes,andcustomerengagementtotranslatemarketgrowthintoprofitableandinclusiveexpansion.

Lifeinsurance

Whilegrowthhasremainedresilient,profitabilityhasbecomeincreasinglychallenging.Thetopfourprivatelifeinsurersdeliveredapproximately12to16percentCAGRinnewbusinesspremium(NBP)andaround14to20percentembeddedvalue(EV)growthoverthecourse

offiscalyears2022–26.

16

Atthesametime,however,value-of-new-business(VNB)marginsdeclinedbythreetofourpercentagepoints(withtheexceptionofoneplayer).Thissuggeststhat,whileinsurerscontinuetowritemorebusiness,theprofitabilityofincrementalbusinesshasmoderated.Zeroinginonsalesanddistribution,analysisfindsthat,whileNBPgrewat

some14percentCAGRoverfiscalyears2022–25,totaloperatingexpensesgrewbyaround

20percentCAGRduringthesameperiod.

17

Indeed,overallproductivityamongthetopIndianlifeinsurershasessentiallyremainedflatinrecentyears(ExhibitE2).Thelifeinsuranceindustryin

Indiaisfocusingonaddressingtheprotectiongapwhilemaintainingoperationalefficiencyand

sustainablemargins.Avaluechainperspectivehighlightsthreekeyfactorstoaddressinordertoachievethisbalancedgrowth:

—Salesanddistributionoperationshavebeensubjecttorisingcostpressuresandstagnantproductivity.

—Underwritingandpricingrepresentasignificantbottleneckwheremanualprocessescontinuetoconstrainspeedanddecisionquality.

—DespitecustomerexperienceimprovingacrosstheIndianlifeinsuranceindustry,servicefrictioncontinuestoimpactretentionandcustomervalue.

12“WorkingGrouponArtificialIntelligence(AI)GovernanceintheInsuranceSector,IRDAI,”June17,2026.

13HandbookonIndianinsurancestatistics2024–25,IRDAI,December2025.

14HandbookonIndianinsurancestatistics2024–25,IRDAI,December2025;HandbookonIndianinsurancestatistics2022–23,IRDAI,December2023.

15HandbookonIndianinsurancestatistics2024–25,IRDAI,December2025.

16HandbookonIndianinsurancestatistics2024–25,IRDAI,December2025;for2026,annualreportsandcorporatefilings.

17HandbookonIndianinsurancestatistics2024–25,IRDAI,December2025;HandbookonIndianinsurancestatistics2022–23,IRDAI,December2023.

ExhibitE2

India’snewinsurancetrack:ThemarathonbecomesanAI-leddecathlon5

Productivityacrossthetopfiveprivatelifeinsurershasremainedbroadlystable.

xxCAGR,%

Averagenewbusinesspremium(NBP)peremployeeandperunitofemployee

expenseacrossthetop5privatelifeinsurers,FY2022–26,index(FY2022=100)

80

FY2022FY2023FY2024FY2025FY2026

NBP/employee

1.5

NBP/employeeexpense

–2.3

120

110

100

90

Source:HandbookonIndianinsurancestatistics2024–25,InsuranceRegulatoryandDevelopmentAuthorityofIndia,Dec2025;McKinseyanalysis

McKinsey&Company

Forlifeinsurers,thesechallengeshighlightseveralareasthatmayinfluenceprofitablegrowth.First,insurersmayconsiderimprovingdistributionproductivityandcustomerpersistency

bystrengtheningadvisoractivationandeffectiveness,equippingfrontlinemanagerswith

betteractivityintelligence,simplifyingadvisorandcustomerjourneys,andusingproactive

servicingandrenewalintelligencetodeepencustomerrelationships.Second,theycould

considerimprovingproductmix,withgreateremphasisonprotectionproducts,whichremainsignificantlyunderpenetratedinIndia.Third,insurerscouldconsiderbuildinggreateroperatingleveragebyembeddingAIandtechnologyacrossthevaluechain,includingAI-enabledintake,riskassessment,anddecisionsupportinunderwriting.Together,theseleverscanimprove

productivity,persistency,andproducteconomicswhilecreatingamoreefficientandscalableoperatingmodel.

Generalinsurance

India’sgeneralinsurancemarkethasfollowedadifferentgrowthtrajectoryfromlifeinsurance.Overfiscalyears2022–25,grosswrittenpremium(GWP)grewatapproximately12percent

CAGR,drivenprimarilybyexpansioninpolicyvolumes,whichincreasedataround14percent

CAGR,whileaverageticketsizesdeclinedbyapproximately2percentCAGR.18Meanwhile,

productivitywithinthesectorremainedmuted(ExhibitE3).Forexample,despitesustained

premiumgrowth,frontlineproductivitycontinuestobeoneofthelargeststructuralconstraintsacrossthegeneralinsuranceindustry.Productivityacrossthetopfiveprivatemultilinegeneralinsurershasdeclinedby2.5percentperannumoverfinancialyears2022–26,measuredas

18HandbookonIndianinsurancestatistics2024–25,IRDAI,December2025.

ExhibitE3

6India’snewinsurancetrack:ThemarathonbecomesanAI-leddecathlon

Productivitygrowthacrossthetopfiveprivategeneralinsurershasremainedlimited.

xxCAGR,%

Averagegrossdirectpremiumincome(GDPI)peremployeeandperunitofemployeeexpenseacrossmajorgeneralinsurers,FY2022–26,index(FY2022=100)

GDPI/employee4.7

GDPI/employeeexpense

–2.5

130

120

110

100

90

80

FY2022FY2023FY2024FY2025FY2026

Source:HandbookonIndianinsurancestatistics2024–25,InsuranceRegulatoryandDevelopmentAuthorityofIndia,Dec2025;McKinseyanalysis

McKinsey&Company

premiumperunitofemployeeexpense.19Onepotentialcontributoristheshiftinbusinessmixawayfromcommerciallinestowardmoredistribution-andservicing-intensiveretailsegments,

particularlyhealth.Notably,however,stand-alonehealthinsurershaveshownadifferent

trajectory,withtwoofthetopthreeplayersdeliveringdouble-digitproductivityimprovement.20

Thus,thegeneralinsurancesector’schallengesarecomparabletothoseinlifebutaredistinctive:

—Frontlineproductivityremainsoneofthekeystructuralconstraintsacrossthesector.

—Underwritingcontinuestorelyheavilyonmanualprocessesandfragmenteddata.

—Claimsmanagementhasemergedasanimportantdifferentiatorofprofitabilityacrossthegeneralinsuranceindustry.

—Customerexpectationsarerising,increasinglyshapedbydigitallymaturesectorssuchasbanking,e-commerce,anddigitalconsumerplatforms;closingthisgaprequiresmorethanincrementalimprovementstocustomerservice.

19HandbookonIndianinsurancestatistics2024–25,IRDAI,December2025.

20HandbookonIndianinsurancestatistics2024–25,IRDAI,December2025.

India’snewinsurancetrack:ThemarathonbecomesanAI-leddecathlon7

Addressingthesechallengesmayrequireadifferentiatedfocusacrossgeneralinsurancelines.Inhealthinsurance,insurerscanstrengthenclaimsandprovider-networkeconomicsthroughintelligenttriage;fraud,waste,andabusedetection;networksteering;andmoregranularriskassessmentandpricing.Inmotorinsurance,thefocuscanbeonstrengtheningunderwriting

andpricingdiscipline,claimsautomation,frauddetection,andrepair-networkoptimization.

Incommercialinsurance,whereunderwritingremainsdocument-andexpertise-intensive,AIcanhelpautomatesubmissionprocessing,enableriskassessmentandpricing,andimproveresponsivenesstobrokers.

HowAImayreshapethewayinsurersoperate

Thequestionnowis,howcanthesechallengesbeaddressedatthespeedandscalerequired

tosupportthenextphaseofindustrygrowth?Historically,theinsuranceindustryhasbeen

hamperedbyfragmentedworkflows,manualdecision-making,siloeddata,andlimited

operationalscalability.However,advancesinAImayenableinsurerstoevolvehowtheyoperate.Ratherthanoptimizingindividualtasks,AIcanenableend-to-endworkflowtransformation

acrosstheinsurancevaluechain,augmentingdecision-making,automatingroutineactivities,andorchestratingincreasinglycomplexprocesses.

Importantly,theprimaryconstraintonAIvaluecreationtodayisnolongertechnologyavailability;it’stheabilitytoembedsuccessfulusecasesintotheoperatingmodelatscale.Thecurrent

challengeisabouttranslatingisolatedsuccessesintoenterprise-widetransformation.AchievingthismayrequireorganizationstomovebeyonddeployingAItoolsandinsteadredesignoperatingmodels,decision-makingprocesses,andbusinessworkflowssothatAIcanbeembeddedinto

howtheenterpriseoperates.SeeExhibitE4forthekeychallengesthathavebeenidentified.ThegreatestvalueisrealizedwhenAItransformsend-to-endworkflowsratherthanindividualtasks.

Whenconsideringthistransformation,insuranceleadersmayfocusontwokeyquestions:

1.Whichworkflowsshouldtheyseektoprioritizetomaximizevaluecreationandimpactpotential?

2.WhatgovernancemechanismsandresponsibleAIconsiderationsneedtobeinplaceasadoptionscales?

ThegreatestvalueisrealizedwhenAItransformsend-to-endworkflowsratherthanindividualtasks.

ExhibitE4

8India’snewinsurancetrack:ThemarathonbecomesanAI-leddecathlon

Indianinsurersmayfaceanumberofsignificantchallenges.

Valuechain

P&C—

commerciallines

Propertyand

Life

insurance

Insurancechallenges

casualty(P&C)—retaillines

Salesand

distribution

Underwritingandpricing

1

2

3

4

–

Lowagentproductivityandactivationandhighattrition

Lowsalesmanagerproductivity

–

Lowdirect-to-consumer(D2C)funnelconversion

–

Lowinsurancepenetrationintiers2and3andruralmarkets

5

6

Underwritingsupportedbymanualprocessesanddatalimitations

Undi仟erentiatedriskpricing

–

7

Highfraud,waste,andabuse,leadingtosignificantrevenueleakage

–

–

Claims

management

Customer

engagement1

8

Highclaimspayoutandprocessingcosts

–

9

Poorcustomerexperienceacrossclaimsandrenewals

Individualnewbusinesspremiumperunit

ofemployeeexpensehasvariedacrosssix

privateplayersoverthepastthreeyears

D2C<5%of

overallgrosswritten

premiumsfor

mostinsurers

Motorthird-partyhasremainedbroadly

stableoverthepast

threeyears,alongsidea2–3percentage

pointincreaseinlossratios

Insurancecoveragein

thesegmentremains

limited;<5%ofmicro-,small,andmedium-sizeenterprisesinIndiahaveadequateinsurance

cover

1Includingclaimsfiling,cross-sellandupsell,andrenewals.

Source:Leadingthepathtoinsuranceofall:Thebrokerofthefuture,InsuranceBrokersAssociationofIndiaandMcKinsey,July2025

McKinsey&Company

Tosupportthetransformationprocess,McKinseyhasidentifiedasetofpotentialAI-led

interventionstoconsideracrosssalesanddistribution,underwritingandpricing,claims

management,andcustomerservicingtohelpinsurersaccelerategrowth,improveproductivity,strengthenriskoutcomes,enhancecustomerexperience,andcreatesustainablecompetitiveadvantage(ExhibitE5).Theseinterventionscanrangefromconversationalsalesenablementandagenticdirect-to-consumerjourneystoAI-enabledunderwriting,intelligentclaimstriage,frauddetection,networkoptimization,andpersonalizedservicing.Theseinterventionsmay

provideapracticalapproachfortranslatingAIcapabilitiesintomeasurablebusinessoutcomesandsupportingmoreproductive,responsive,andscalableinsuranceoperations.

ExhibitE5

India’snewinsurancetrack:ThemarathonbecomesanAI-leddecathlon9

AI-ledinterventionscouldbeappliedacrossseveralpartsoftheinsurancevaluechain.

Valuechain

Potentialinterventions

Salesand

distribution

1

Conversationalsalesenablementwithvernacularsupport

4

Agenticdirect-to-consumergrowthengine

2

Intelligentactivitymanagementfor

5

Ecosystem-embeddedacquisition

3

frontlinemanagers

Shiftingtoahigh-performanceagencymodel

6

Drivingtier3andruralpenetration

throughchannel-productsimplification

Underwritingandpricing

7

AI-assistedsubmissionintake

11

Dynamicriskpricing

8

AI-basedcaseroutingandtriage

12

Underwritingdecisioninglayer

9

Intelligentdocumentationanalysis

13

Underwritingworkfiowcommunication

10

Smartriskassessment

14

AI-enableddistributorsupport

Claims

management

15

Multichannelfirstnoticeoflossintake

19

Integratedfraud,waste,andabuse

16

Intelligentclaimstriageandorchestration

20

detection

Networkoptimizationandecosystem

17

End-to-endclaimscopilot

steering

18

Predictivedisputeandlitigation

management

Customer

engagementandservicing1

21Proactivelifecycleengagement23Intelligentworkfioworchestration

22Conversationalservicingandtransaction24Predictiverenewalintelligenceexecution

1Includingclaimsfiling,cross-sellandupsell,andrenewals.

McKinsey&Company

ExhibitE6setsoutthepotentialbusinessimpactAIinterventionscanhaveacrossthevaluechainforthelifeandgeneralinsurancesectors,togetherwiththelikelytimeitmighttaketorealize

theseoutcomes.

Whiletheseinterventionsmayberelevantacrosstheinsuranceindustry,theirpotentialvalueandsequencingcandifferbysegment:Distributionproductivity,underwriting,andpersistencyare

particularlyimportantforlifeinsurers;underwriting,claims,andnetworkeconomicsforhealthandretailgenerallines;andunderwritingtransformationforcommerciallines.

Inparallel,insuranceleaderscouldconsiderhowtostreamlinegovernancestructuresto

enablefasterdecision-makingandacceleratevaluedeliveryaspartofaredesigned,agile

operatingmodel.High-qualitydataproducts,commondatadefinitions,stronggovernance,andenterprise-wideaccessibilitycanprovideafoundationfordeployingAIatscale.Moreover,ratherthantreatingdataasafunctionalasset,organizationscanconsiderenterprise-wideplatforms

thatmakedataeasytoconsume,share,andreuseacrossbusinessfunctions,supportingbothanalyticsandAIadoption.Organizationscanalsoconsiderchangemanagement,stakeholder

ExhibitE6

10India’snewinsurancetrack:ThemarathonbecomesanAI-leddecathlon

AIinterventionscanbeassessedbybusinessimpactandtime-to-valueacrossthevaluechain.

Valuechain

High.Medium.LowLesstimeMoretimeAIvaluerealizationTimeforrealization

Distribution

Life

insurance

CommissionsN/AN/A

Marketingandacquisition

Directemployeeexpensesandothers

Underwritingandpricing

b

Claims

Customerservicingandrenewals

GeneralDistribution

insurance—

retail(healthandmotor)

CommissionsN/AN/A

Marketingandacquisition

Directemployeeexpensesandothers

Underwritingandpricing

b

Claims

Customerservicingandrenewals

Distribution

General

commercialandgroup

insurance—

CommissionsN/AN/A

Marketingandacquisition

Directemployeeexpensesandothers

Underwritingandpricing

b

Claims

b

Customerservicingandrenewals

McKinsey&Company

India’snewinsurancetrack:ThemarathonbecomesanAI-leddecathlon11

engagement,governance,riskmanagement,andvaluetrackingtosupportthetranslationof

AIinitiativesintomeasurablebusinessoutcomes.Insurerscanconsiderembeddingnewways

ofworkingintotheorganizationfromtheoutset,creatingbuy-inacrossstakeholdersand

establishingmechanismstomonitorvaluerealization.Thepotentialimpactoftransformationcandependonadoptionatscalewithsustainedoutcomessupportedbyinvestmentinbothadoptionandcapabilitybuilding.

ScalingAIwithintheorganization

TheprimaryconsiderationforIndianinsurerstodayisnolongeraboutwhetherAIcancreate

valuebuthoworganizationscanconsistentlyconvertsuccessfulpilotsintoenterprise

capabilitiesthatcansupportbusinessperformanceatscale.McKinsey’sRewired2.0AI

transformationapproachhasidentifiedsixcapabilitiesassociatedwithorganizationsthat

havescaledAI:business-ledroadmaps,evolvedtalentmodels,redesignedwaysofworking,

flexibletechnologyfoundations,enterprise-gradedataassets,anddisciplinedadoptionand

scaling.Whileeachcapabilitymaycontributevalueindividually,developingthemtogetherasanintegratedtransformationagendamaysupportbroaderimpact.

Atthesametime,organizationscanconsiderreviewingtheassumptionsaroundhowAImay

createvalue.OrganizationsthatsuccessfullyscaleAItendtochallengepreconceptionsacross

thefollowingdomains:thebusinessroadmap,talentandtheworkforce,flexibletechnology

foundations,extentandownershipofdata,andadoptionandscalingatanearlystageinthe

process(ExhibitE7).RatherthanviewingAIasatechnologyinitiative,organizationscantreattheprocessasabusinesstransformationthatrequiresnewoperatingmodels,disciplinedexecution,andcontinuousorganizationallearning.

Insurerscanconsiderembeddingnewwaysofworkingintotheorganizationfromtheoutset,creatingbuy-in

acrossstakeholdersandestablishing

mechanismstomonitorvaluerealization.

ExhibitE7

12India’snewinsurancetrack:ThemarathonbecomesanAI-leddecathlon

Whenembarkingonatransformation,insurerscanreviewassumptionsabouthowAImaycreatevalue.

Assumption

vs

Thereality

Business-led

1Businesspresentsahigh-leve

l

BusinessleadersoutlinerequirementsindetailforITand

roadmap

usecaseidea,andthenITand

techteams.Thiscaninvolvecollaborationacrosscore