The insurance sector is currently faced with a pressing need to enhance accuracy in risk assessment, streamline claims verification, and personalise coverage to meet rising customer demands. With expectations higher than ever, firms are now looking for a panacea. Enter agentic AI—an innovative solution that is being tipped by many to transform the InsurTech sector in 2025.
Agentic AI allows AI-driven systems to execute tasks independently, adapting over time to streamline workflows and improve decision-making.
Within insurance, it can automate claims management, underwriting, and customer interactions, making services faster and more accurate.
Insurers benefit from cost savings and higher customer satisfaction, with predictive analytics enabling proactive adjustments in coverage based on real-time data.
Agentic AI surpasses traditional AI by introducing a “chaining” capability. This enables it to carry out a series of actions in response to a single command, breaking down intricate tasks into smaller, achievable steps. For instance, if tasked with building a website, an agentic AI system would independently create a sequence of goals.
FinTech Global‘s Harry Slade sat down with Sebastian Gruber co-founder & CEO at hi.health to discuss the transformative potential of the the software.
The current state of play
The insurance industry is undergoing a technological transformation as AI becomes central to its operations, benefiting both insurers and their customers. With agentic AI, companies can assess risk with new precision by processing real-time data from diverse sources.
This shift enables insurers to identify patterns and trends that sharpen underwriting, pricing, and overall risk assessment.
Routine tasks like claims processing and policy administration are increasingly automated, reducing errors and freeing up staff to focus on complex cases.
Additionally, AI-powered systems are becoming adept at fraud detection, alerting insurers to suspicious claims that merit further review, which minimises financial losses.
But firms are making sure to not rush into implementing it into their offering too quickly, instead choosing to understand the technology’s potential impact, so as to find its most effective use-cases.
Gruber explained, “At hi.health, we are actively experimenting with agentic AI on internal processes and across various facets of our solutions. While I am unable to disclose specific features at this stage, we are exploring several promising use cases that aim to enhance our operational efficiency and improve customer experiences. Preliminary findings suggest that agentic AI can significantly streamline claims processing and optimise customer interactions, leading to faster response times and more personalised services.”
A survey conducted by Capgemini involving 1,100 executives from large companies concurred with this potential. It found that 10% of organisations are already utilising AI agents, with more than half planning to adopt them within the next year and 82% expecting to integrate them within the next three years.
The survey highlighted that 71% of participants believe AI agents will enhance workflow automation, 64% anticipate improvements in customer service and satisfaction, and 57% view the productivity benefits as outweighing the associated risks.
The primary application of agentic AI, cited by 75% of respondents, is in software development—particularly for generating, assessing, and rewriting code.
hi.health is confident it will release the specific details of its agentic AI solution in due course, with its impact set to be remarkable.
“We anticipate sharing exciting updates regarding our advancements soon, which will showcase the transformative potential of agentic AI in our industry,” Gruber said.
Ethical considerations
Despite the clear buzz around the technology, as ever, the integration of AI into the insurance sector brings with it complex ethical considerations.
Insurers are increasingly focused on ensuring that AI applications result in fair, equitable outcomes that align with customers’ best interests.
According to KPMG’s 2023 CEO Outlook Survey, 57% of executives voiced concerns over the ethical implications of AI adoption.
Ethical considerations for agentic AI differs significantly from those for more standard, non-agentic AI due to the enhanced autonomy and decision-making latitude of agentic systems.
Traditional AI generally follows set instructions for specific tasks, making its decisions relatively predictable and controllable.
However, agentic AI can operate in a more independent and dynamic manner, creating unique ethical concerns related to accountability, transparency, and fairness.
One primary concern with agentic AI is accountability. Because these systems can act on their own initiative, it’s harder to attribute responsibility if something goes wrong.
Questions about who is liable—developers, users, or the systems themselves—are particularly pressing as agentic AI takes on more autonomous roles in sectors like healthcare, finance, and customer service.
To address this, companies and regulators are exploring frameworks to clearly assign responsibilities and establish guidelines for accountability.
This approach is considered paramount at hi.health, and has become a critical part of the process when developing their own agentic AI solution.
“At hi.health, ensuring ethical considerations is foundational to our use of AI and we do this in controlled environments,” said Gruber. “We place a strong emphasis on compliance and data privacy in all our operations. We utilise private models that are refined using our internal data, which we are authorised to use, ensuring that we maintain control over sensitive information. Furthermore, we are ISO27001 certified, adhering to the highest standards of data security and governance.”
Tapping into the potential
Despite the ethical concerns, it is no surprise that the technology is already being labeled as the one-to-watch in 2025 and beyond.
The launch of GenAI sparked a competitive rush among enterprises to adopt AI, it is agentic AI that has the potential to truly revolutionise the business landscape.
A report from Emergen Research projects the agentic AI market to reach a valuation of $30.89bn in 2024, with a compound annual growth rate (CAGR) of 31.68%. North America already accounts for approximately 20% of this total market share.
By 2033, the revenue forecast for the market is expected to hit a staggering $367.68bn, underlying the market’s potential.
Gruber concurred with the feeling that the market is set to boom, suggesting that he anticipates a future where the technology has completely overhauled the insurance market.
The potential for Agentic AI to revolutionise the insurance industry over the next five to ten years is vast,” said Gruber. “I foresee a future where AI-driven insights not only enhance underwriting accuracy but also enable insurers to tailor products more closely to individual customer needs.
“This technology will facilitate predictive analytics, allowing insurers to anticipate risks and adjust policies proactively. Moreover, agentic AI has the capability to transform customer service by enabling real-time, intelligent interactions through chatbots and virtual assistants, ultimately leading to a more engaging and efficient customer experience. As the industry embraces these advancements, we will likely see a shift toward a more proactive, customer-centric model that prioritises value and transparency,” he continued.
Looking ahead to the future, Gartner forecasts that by 2028, agentic AI will be responsible for 15% of daily work-related decisions, creating new a litany of new opportunities for carriers.
Delving into these almost unfathomable figures, it is hard to argue that agentic AI is the future of the insurance sector. Only time will tell how long it takes the technology to completely revamp the market.
Keep up with all the latest FinTech news here
Copyright © 2024 FinTech Global
