McKinsey sees AI transforming underwriting and claims work

AI is expected to handle nearly all customer onboarding and policy processes.

McKinsey forecasts that insurers who integrate AI deeply are expected to process more business faster, offer more personalised services, and gain better insights into risk, according to its “The future of AI in the insurance industry” insight.

Unlike past tech trends, gen AI brings advanced reasoning, creativity and empathy—traits that can transform underwriting, claims and customer engagement.

It handles unstructured data like text and images, enabling applications from automated voice agents to real-time, customised underwriting and claims assessment. 

To capture value, insurers must go beyond isolated pilots. McKinsey advises setting a clear enterprise AI strategy and reshaping end‑to‑end workflows—upgrading data, tech infrastructure, talent and governance—rather than simply layering AI onto existing processes.

Firms that successfully rewire their operations are expected to boost efficiency, cut costs and offer seamless, tailored customer experiences.

Looking ahead, AI is expected to handle nearly all customer onboarding and policy processes through multi‑agent systems. 

These virtual agents will intake data, analyse risk, suggest pricing, ensure compliance, and orchestrate decisions, referring to humans only when needed.

However, realising this future hinges on overcoming common obstacles: data silos, governance