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The potential for artificial intelligence is enormous, including streamlined claims, more accurate and faster underwriting, and a better customer experience. In fact, most carriers are already exploring generative and agentic AI pilots.
AI initiatives need the right environment to thrive for companies to realize lasting value. For example, many carriers still rely on legacy systems—which may mean some business processes are outdated.Before layering on AI solutions, it’s critical to streamline business operations.
This concept isn’t new. Many insurers attempted to stack Robotic Process Automation (RPA) on top of outdated workflows. Instead of streamlining operations, RPA often created brittle, patchwork systems that were costly to maintain and limited in scale. This isn’t about slowing down AI adoption—it’s about making sure each investment builds momentum rather than roadblocks. Insurers should adopt a “business operations first” mindset when implementing AI—always.
AI depends on standardized data, streamlined workflows, and strong governance. Think of this as the invisible infrastructure: the foundational elements that make AI sustainable and scalable. Here are the five pillars to help carriers ensure AI-ready insurance operations:
- Standardize core operations: Before digitization or automation, insurers must standardize core business processes—across policy, claims, billing, and customer service. This entails defining consistent workflows, eliminating redundancies, and aligning operational practices across teams and geographies. Standardization creates clarity, reduces friction, and sets the stage for scalable transformation.
- Digitize with streamlined workflows: Once operations are standardized, insurers should focus on digitizing workflows using modern platforms that enable transparency, traceability, and collaboration. This includes replacing manual handoffs with digital interfaces, integrating systems for seamless data flow, and ensuring that every step in the process is visible and auditable.
- Automate for efficiency and scale: With digitized workflows in place, automation can drive real impact. Low-code tools, middleware, and APIs can connect legacy systems with modern applications, automating repetitive tasks like claims intake, billing reconciliation, and document processing. APIs create a common language that allows modern applications to integrate with legacy systems, reducing silos and unlocking efficiencies. By layering APIs on top of existing systems, insurers reduce friction, and extend the useful life of their core platforms while modernizing at scale. Automation not only improves speed and accuracy but also generates clean, structured data—essential for AI readiness.
- Empower teams for AI-augmented roles: AI will reshape—not replace—insurance roles. Employees will evolve from task executors to AI supervisors, responsible for training models, refining prompts, and overseeing outcomes. Insurers must invest in change management, upskilling, and role redesign to prepare teams for this shift. Performance metrics will shift from task completion to AI oversight and governance. Insurers should begin training employees to prepare for this shift before they start implementing AI. Then as the technology begins to be incorporated into various workflows, change management practices should then continue to run in parallel to the integrations.
- Build a resilient AI governance framework: AI introduces new risks—bias, opacity, and unpredictability. A strong governance framework is essential before scaling AI. This includes clear compliance protocols to explain AI decisions to regulators, vendor selection criteria focused on transparency and explainability, defined thresholds for human intervention in high-stakes processes and cybersecurity safeguards to protect sensitive data.
The insurers that will lead won’t be those that rush to deploy the latest tools, but the companies that build with purpose. By investing in the core—and invisible infrastructure-- carriers create the conditions for AI to deliver real and lasting value. This foundation ensures that every AI initiative strengthens the enterprise. Insurers that take this approach won’t just keep pace with transformation; they’ll set the standard for trust, efficiency, and innovation in the decades ahead.
Subramanian Sankaran is the Global Chief Operating Officer at Xceedance, a global provider of technology-driven business solutions for the insurance industry. He is responsible for scaling global operations, driving consistent service delivery, and aligning business execution with strategic objectives. With more than 30 years of leadership experience across Wipro, Accenture, GeBBS Healthcare Solutions, WNS, GE Capital, and Pfizer, he has led large, globally distributed teams, managed complex client portfolios, and delivered enterprise transformation in both high-growth and steady-state environments.
Opinions expressed here are the author's own.
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