New Delhi, July 31 -- Artificial intelligence (AI) is helping insurance companies improve sales, reduce customer onboarding costs and process claims more accurately, according to a report by McKinsey.

The report said insurers adopting a domain-based AI strategy have recorded a 10-20 per cent improvement in new-agent success rates and sales conversion rates, along with a 10-15 per cent increase in premium growth. Customer onboarding costs have declined by 20-40 per cent, while claims processing accuracy has improved by 3-5 per cent.

McKinsey said insurers are focusing on applying AI across core business functions such as sales and distribution, underwriting, claims and policy servicing. Rather than deploying AI across the entire organisa...