Integration of AI in the Management Practices of Insurance Companies in India: An Exploratory Study

Abstract

The Servicesector is contributingaround 55 % to India’s Gross Domestic Product (GDP) and, in the process, has become the growth of engine of the economy. The players are in the servicesector include in industries / companies offering intangible services like, Banking,Finance, Insurance, Healthcare,Tourism, Telecommunications, Hospitality, IT, BPO and Real estate. Their relative contribution to the GDP varies depending upon their capabilities, competitive efficiency and management practices. Among the various services, Insurance sectors play a major roleof offering financial protection of individuals as well as companies.To be successful in the market theInsurance companies in India have to adopt well defined managementpractices of integrating the AI powered tools in their strategies. In the broadspectrum of AI -enabled tools will help the Insurance companies to streamline the handling of customer relationship; processing claims in an automate manner; enhance risk assessment matrices;updating marketing trends and optimization of operations. The adoption of AI help to improve in reduction costs. Ultimately, the customers experience a superior service. The present highlight salient features of AI and to explore the degree of adoption of AI tools in the management practices of insurance companies;and to examine the challenges / barriers in the extensive adoption of AI tools in the Indian Insurance Sector. By collecting information and data from the published sources an analysis has been done. The preliminary results revealed the fact that there has been a great scope for the integration of AI enabled management practices by the Insurance Companies in India to improve their efficiency on the one hand and provision of quality services to the customers on the other.