AI slashes issuance time for nearly half of clients: Policybazaar

AI is also used to manage over 30% of first-contact customer queries.

Artificial intelligence (AI) now handles nearly half of insurance workflows, reducing policy issuance time for nearly half of its customers from four hours to just 15 minutes, according to Policybazaar.

The platform has also seen a 14-fold improvement in early fraud detection for claims processing since deploying AI systems.

According to the firm, 48% of customers received their policies within 15 minutes between February and March 2025, compared to just 1.3% in January, before the full rollout of AI tools.

AI is also used to manage over 30% of first-contact customer queries through chatbots and has led to a 15% reduction in resolution turnaround time.

Customer satisfaction has risen to over 94%, with more than 500,000 hyper-personalised nudges sent daily to users based on factors like policy stage and digital behavior. 

These nudges have reportedly driven a 20% increase in purchase intent.

AI is also enhancing customer service operations by routing support tickets with more than 84% accuracy, using contextual information such as query type and urgency. 

Sentiment analysis tools help preempt potential complaints, especially during peak periods like tax season.

In fraud detection, AI has flagged around 11% of term plan claims and 16% of savings plan claims for potential fraud, enabling insurers to accelerate the processing of legitimate claims and improve customer trust.