Life Insurers Must Build Foundations Before Scaling Agentic AI, Deloitte Says
Deloitte released a paper on May 6 setting out how life insurers across Asia Pacific can move agentic AI from pilot projects to enterprise-scale operations. The strategic question, the firm argues, is no longer whether agentic AI creates value-it's whether insurers have the operational foundations to realise that value.
Life insurers face a widening gap between customer expectations and what their current systems can deliver. Customers now benchmark insurers against fintech platforms and e-commerce companies, expecting speed, certainty, and seamless service. Traditional insurance operating models were not built for that pace.
Agentic AI-systems that orchestrate decisions, data, and actions across an entire enterprise-offers a way to close that gap. Unlike incremental automation, agentic systems can reshape how work is designed and coordinated.
Early adopters are seeing measurable gains
Insurers already deploying agentic AI at scale report tangible improvements: 20-30% faster product refresh cycles, 10-20% uplift in conversion rates, 30-50% reductions in underwriting and claims decision times, 20-35% reductions in servicing costs, and 15-30% improvements in forecast accuracy.
Only a small fraction of life insurers have scaled agentic AI beyond pilots, but those who have are seeing material improvements in cost structures and customer experience. Across Asia Pacific financial services firms, 21% report at least moderate use of agentic AI today. That figure is expected to rise to 78% within two years.
Six foundational capabilities matter most
Deloitte cautions that agentic AI amplifies whatever it is given. Unclear processes, weak decision-making, and fragmented data still produce flawed outcomes-just faster.
To move from pilots to sustainable deployment, the firm identifies six foundational capabilities life insurers should prioritise:
- An outcome-based operating model
- Zero-Ops mindset and value-focused thinking
- Modern, composable architecture
- Governance for trustworthy AI
- Data quality and responsible AI
- Talent, culture and human judgement
Human empathy remains central to the insurance experience. In claims and other emotionally significant moments, judgement, reassurance, and clarity cannot be automated away. The most effective insurers combine intelligent orchestration with human-centred service, using automation to free people for the interactions that matter most.
Deloitte's paper also outlines seven pragmatic actions leaders can begin taking today to capture near-term value while building long-term capability. The full report is available on the firm's website.
For professionals working in insurance operations, understanding these foundations is essential. AI for Insurance covers how these systems apply to claims processing, underwriting, and policy automation. Those new to agentic systems should also review Generative AI and LLM fundamentals, as agentic AI builds directly on these capabilities.
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