The roadmap of Gen Next Technologies in InsurTech

InsurTech has revamped the insurance sector over the last five years. Offline processes have been leading to inefficiencies across the insurance value chain- from process execution, product choice, price transparency, policy transactions, customer service, and claims handling. These inefficiencies came at a cost- historically, up to 60% of policy-related costs were absorbed due to offline inefficiencies, pushing up prices and limiting affordability for the end consumer.

Digitisation has broken the geographical and structural barriers by replacing legacy, branch-led distribution models with scalable, tech-enabled solutions. InsuTechs have been driving higher accessibility through new channels and improving efficiencies in existing channels; it has been driving higher awareness and trust through focus on overall health, wellness and seamless experience. Specially in health insurance, digitization has been instrumental, as consumers make more than 45% of spends out of pocket.

While we have been talking about advanced technologies integrated into insurance, let us take a look at the next set of tech innovations which will shape the industry over the next two years.

Generative AI (GenAI) combined with Model Context Protocol (MCP), is transforming the insurance landscape. Unlike traditional automation, GenAI goes beyond simply speeding up form-filling—it understands context, learns from complex documents, and delivers real-time insights. For insurance agents, this means the ability to read and summarize unstructured health and financial reports, flag pre-risk underwriting concerns such as diabetes or smoking history, and generate personalized proposals tailored to a client's age, lifestyle, and income. GenAI can also communicate policy details in regional languages like Hindi, Tamil, or Bengali, and coach agents on handling client objections and suggesting next-best actions.

MCP complements this by integrating data from various channels such as WhatsApp, PDFs, scanned documents, emails, and voice inputs, converting them into structured digital formats. It seamlessly syncs this data with insurer systems, significantly reducing rework and communication delays. Together, GenAI and MCP today empowers agents to work more intelligently, close sales faster, and provide superior customer support.

Synthetic Data Generation: Tools like Mostly AI enable the creation of synthetic data that mirrors real data in structure and behaviour, without containing any sensitive personal information such as names or contact details. By learning patterns from real datasets, it generates ‘digital twins’ that maintain data utility while preserving privacy.

This is especially valuable in the InsurTech sector, where companies can train AI models, test pricing strategies, and simulate customer scenarios without risking regulatory violations. Synthetic data helps identify fraudulent behaviour, forecast claims, and safely experiment with business strategies, reducing nearly half the manual effort in model training, fraud detection, and pricing analysis.

Large Language Models (LLMs): LLMs are handling nuanced tasks such as drafting reports, writing code, conducting research and providing detailed responses. Many businesses are using LLM-powered chatbots and virtual assistants to improve customer service and engagement, significantly reducing costs while increasing responsiveness. It can generate ideas, help in brainstorming, write content for materials collaterals, and even automate creative processes. Many companies using LLM-powered customer support solutions have reported a reduction in human intervention by 20–30% and it is estimated that 40% of new business applications will integrate LLMs, enabling real-time business intelligence.

Single User Interface (Single UI): It is an advanced, unified digital control layer that seamlessly integrates diverse services, tools, and backend systems into one cohesive interface, eliminating the need to juggle between multiple applications. Acting as a centralized command hub, Single UI streamlines workflows, enhances system interoperability, and accelerates user interactions by consolidating access points. Its architecture ensures cross-channel consistency, delivering a frictionless and intuitive user experience across platforms. For enterprises, this not only simplifies system maintenance and reduces operational complexity but also drives brand recall by offering a consistent, high-performance interface that users trust and return to.

Gen AI for Insurance agents: Gen AI is revolutionizing the way insurance agents are working, learning, and connecting with consumers, especially in diverse and underserved regions. Acting as a virtual mentor, GenAI provides real-time coaching, suggests alternative product combinations, and offers customized sales pitch variations based on factors like the customer's age, income, and medical history. It is also supporting insurance agents to translate proposals and explain product benefits in local languages. With voice-to-text capabilities, agents can also navigate the systems more easily and communicate with consumers more effectively.

While these are some of the leading InsurTech innovations shaping the industry today, the landscape is rapidly evolving, with a continuous stream of emerging technologies aimed at transforming the insurance ecosystem.

The author is the CEO, Aritvatic.AI