ICICI Prudential Cuts Cost Ratio as AI, Digital Push Drive Operational Efficiency

ICICI Prudential Life Insurance on Thursday said its sustained investment in digital technology, artificial intelligence and automation has helped reduce its cost-to-premium ratio for the savings business to 13.6 per cent in the first quarter of FY2027, a decline of 50 basis points from a year ago despite continued business growth.

The insurer attributed the improvement to technology-driven operational efficiencies and cost optimisation measures across customer acquisition, policy servicing and claims processing.

Chief Technology Officer Ganessan Soundiram said the company’s digital investments were aimed at simplifying customer experience while reducing manual processes and improving operational efficiency. He said artificial intelligence, analytics and digital platforms were increasingly being used to strengthen distribution, customer servicing and business operations.

The company said nearly 58 per cent of policies in the quarter were issued using digital Know Your Customer (KYC) processes, while around 54 per cent of savings policies were issued on the same day, reflecting faster turnaround enabled by technology.

ICICI Prudential also highlighted its AI-enabled claims ecosystem, stating that digital claim registration, automated pre-claim assessment and chatbot-based tracking have contributed to a claim settlement ratio of 99.3 per cent, with an average settlement time of one day for non-investigated individual claims during the quarter.

The insurer said AI-powered tools are also supporting underwriting, policy persistency prediction and customer engagement, while digital platforms used by advisors are helping improve productivity and accelerate policy issuance.

The company said technology-led innovation will remain central to its long-term growth strategy as it marks 25 years of operations in the Indian life insurance sector. [KNT]

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