Building an Ecosystem of Innovation

India is at the forefront of the global AI revolution, driving innovation across emerging industries and solidifying its position as a leading innovation hub. According to Bain & Company, India is one of the top five AI talent hubs in the world, producing 16% of the global AI talent pool. Therefore, despite global economic fluctuations, sectors like Insurance Tech (InsurTech) continue to demonstrate strong growth potential. With cumulative investments exceeding $2.5 billion by tech startups for InsurTech, and even greater capital inflows on the horizon, the sector is set for exponential expansion. Propelled by hyper-digitization, India is shaping a dynamic InsurTech ecosystem that is making insurance more accessible, efficient, and personalized. The question is no longer whether InsurTech is the future—the paradigm shift has already occurred—but rather how India is positioning itself as a key driver of this transformation. AI as the driving force in InsurTech growth India’s potential to become the AI powerhouse of the world is significantly contributing to the InsurTech sector by enhancing operational efficiency, improving risk assessment processes, and strengthening fraud detection mechanisms. Automation-driven underwriting and claims processing are drastically reducing turnaround times, while predictive analytics enables insurers to offer personalised policies. Predictive analytics allows insurers to curate customised policies by analysing extensive datasets, anticipating customer behaviours, and pre-empting risks with precision. Additionally, AI-powered fraud detection tools are enhancing transparency and rebuilding trust in the insurance industry. AI-driven policy recommendations are also becoming increasingly precise, setting new standards for the sector. Customers have evolved over the years in their expectations of the insurance experience. Hyper-personalisation, real-time solutions, and digital integration are helping reshape the sector. These are the areas where AI becomes instrumental in delivering customised solutions and making insurance services more accessible and responsive. Tech-adoption as the disrupting factor India’s insurance sector has long struggled with legacy systems, paperwork, and a traditional mindset resistant to change. But this is also where the biggest opportunity lies. By combining AI-driven insights with a human-in-the-loop approach, insurers can transform how they assess risk, process claims, and deliver services. When AI augments- not replaces- human judgment, it helps ensure accuracy, fairness, and faster decision-making. The ultimate goal: create seamless, personalized experiences that build customer trust and move the industry into a more agile, digital-first era. Yet, technology alone is not enough, given Indian consumers’ deep inclination towards relationship-driven investments based on trust. This means InsurTech should not only be tech-driven but also human-centric throughout the insurance experience. This ensures that human intervention is enhanced by digital integration—not replaced by it. Furthermore, creating a richer customer experience requires leveraging AI and data analytics to offer proactive and seamless support, while human assistance fosters trust and long-term engagement. Building collaborative ecosystems for future growth India’s insurance sector is embracing digital transformation at an unprecedented pace — and Global Capability Centers (GCCs) are proving to be powerful catalysts for this change. By anchoring critical technology, analytics, and customer experience functions within India, GCCs enable insurers to modernize legacy systems, deploy advanced AI and automation responsibly, and experiment with new customer-centric products at scale. These centers not only build digital capabilities faster but also bring talent closer to the customer context — ensuring that innovation is both relevant and resilient. The future of InsurTech in India The future of InsurTech is filled with opportunities for innovation and collaboration. As the industry continues to expand, insurers must embrace forward-thinking strategies that prioritise technological excellence and customer-centricity. The convergence of AI, automation, and data analytics will be integral in making insurance services more accessible, transparent, and efficient. The article has been authored by By Ashish Srivastava, Senior Vice President and Managing Director, MetLife Global Capability Center.