The insurance industry is going through a major shift, with customers now expecting faster, more personalised, and round-the-clock support. However, traditional call centres are struggling to keep up. Long hold times, language barriers, and inconsistent service have created a communication gap between insurers and policyholders, leading to frustration and lower customer satisfaction.
The adoption of AI in India's insurance industry is on a significant rise. According to a 2024 report by Infosys, spending on generative AI in the insurance sector is projected to surge from $70 million in 2023 to $320 million in 2024, marking a 357% increase.
Moreover, AI-powered voice agents are proving to be game-changers. Companies like HDFC ERGO have implemented AI-driven customer relationship management systems, resulting in service time reductions of over 70%.
Whether it's answering policy-related questions, helping with claims, or following up on renewals, voice AI for insurance is transforming how insurers connect with their customers. It reduces operational costs, shortens wait times, and improves overall service quality, without needing a large human workforce. As more insurance providers adopt automation, insurance voice AI is becoming a must-have tool for staying competitive in a fast-changing market. In this article, we’ll explore how voice AI is revolutionising the insurance customer experience and why early adopters are already seeing real results.
Insurance Needs Voice AI Now More Than Ever
Today’s policyholders expect instant, personalised service across every touchpoint, especially in moments of need, such as filing a claim or renewing a policy. A single poor phone experience can push customers toward a competitor. This expectation shift has made real-time, human-like interactions not just a ‘nice-to-have,’ but a necessity.
While 74% of insurance customers prefer digital channels for quick and easy service, voice calls are still the most trusted option during emergencies like accidents or medical issues. That’s why insurance voice AI is becoming so important, and it offers the speed of digital with the trust of voice, helping insurers give fast, reliable support when it matters most.
Voice AI combines the empathy of spoken conversation, offering insurers a strategic edge in meeting these elevated service standards.
Voice AI: The Missing Piece in Insurance CX
Most insurers have adopted chatbots or self-service portals, but few have tackled the voice channel. This oversight leaves a critical service gap, especially in Tier II & III cities or older demographics, where the phone remains dominant.
Insurance voice AI is more than just another tool, and it’s a smart and reliable assistant built for today’s insurance needs. It can understand different regional accents across India, making conversations smoother and more natural for customers. It also learns from past interactions to give personalised responses, which helps build trust and improve customer satisfaction.
One of its biggest advantages is the ability to run 24/7, answering queries and solving problems without needing extra human agents. Insurance companies can handle more calls, reduce wait times, and offer better service while keeping costs low. With features like these, insurance voice AI is becoming a must-have for modern insurers looking to scale and stay ahead.
By addressing this in phone-based service, insurance voice AI is the final puzzle in delivering seamless omnichannel customer experiences.
What is Insurance Voice AI and How Does It Work?
Voice AI in insurance isn’t just about automating calls, but it’s about creating intelligent conversations that feel human, resolve issues faster, and adapt in real time. By leveraging natural language processing (NLP), machine learning, and speech recognition, insurance voice AI platforms transform how insurers engage with customers across their lifecycle from onboarding to claims to renewals.
Voice AI vs Traditional IVRs in Insurance
Interactive Voice Response (IVR) systems were once revolutionary, but today they’re more frustrating than functional. Press 1 for claims. Press 2 for support. Customers don’t want to “press” but they want to talk. That’s where voice AI steps in.
A voice AI system can instantly pull up customer records, detect intent, and respond contextually, without sending the caller in circles. Customers don’t want automation, and they want intelligent service. Voice AI enables this by making conversations fluid, fast, and personalised.
How Voice AI Handles Claims, Queries & Upselling
Insurance voice AI isn’t just for answering basic questions. It can handle complex tasks like claim processing, policy updates, and emergency support with ease. By using real-time data and smart automation, it often performs faster and more accurately than human agents. This helps insurers improve service quality while reducing workload.
Here’s how it works across core insurance functions:
Claims Handling:
With insurance voice AI, claim processing becomes faster and more accurate. The system can collect claim numbers from customers, verify their policy details instantly, and update the claim status. This speeds up the claims process and keeps customers informed in real-time, reducing frustration and wait times.
Query Resolution:
Insurance voice AI can quickly answer questions about premiums, coverage options, and policy terms. It can also assist customers by sending policy documents directly to their email or phone. This makes it easier for policyholders to get the information they need without long waits or transferring between agents.
Upselling and Renewals:
The AI system smartly tracks when a customer’s policy is about to expire or if they qualify for upgrades. It then reaches out proactively with personalised offers and renewal reminders. This helps insurance companies boost customer retention and increase sales, all while providing timely and relevant support.
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Real-World Impact of Insurance Voice AI
Adopting voice AI is no longer an option, but it is now a requirement, and the results that are coming are very favourable for insurers. Insurance voice AI is proving its ROI across multiple metrics, from handling time to boosting policy renewals. Let’s dive into the numbers that show why early adopters are pulling ahead of the competition.
2024–2025 Stats on Voice AI Adoption in Insurance
The past 18 months have seen exponential growth in the use of AI-powered voice solutions across the insurance sector, especially in emerging markets like India and Southeast Asia. Here is some data:
38% of insurers globally have implemented voice AI in at least one business function, up from 22% in 2023 (Source: Deloitte Insurance Tech Outlook 2025).
61% of policyholders under 40 prefer speaking with a virtual agent before escalating to a human (Accenture CX Insurance Study, 2024).
Over 50% of Tier 1 insurers in India are investing in multilingual voice AI to cater to regional policyholders (NASSCOM AI Adoption Report, 2025).
This growth is driven by operational necessity and customer demand for instant, intelligent, and voice-first experiences.
Measurable ROI: Efficiency, Resolution Time, NPS
Insurance companies aren’t deploying voice AI just for trendiness, and they're seeing measurable business benefits. Insurance voice AI is helping insurers handle a large volume of customer queries without human agents. According to the McKinsey Insurance Ops Survey (2025), voice AI can resolve up to 60% of Tier-1 queries on its own. This leads to shorter wait times and quicker support for policyholders. It also brings down the Average Handling Time (AHT) by 35–45%, improving overall efficiency.
In addition to speed, customer satisfaction is rising. Health and auto insurers have seen Net Promoter Scores (NPS) increase by an average of 25 points after using voice AI. It’s also proving to be cost-effective. LocalCircles CX Survey (2025) shows that the cost per interaction in Indian contact centres dropped from ₹70 to ₹22. These savings make insurance voice AI a smart choice for insurers looking to scale without increasing overhead.
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Use Cases: How Insurance Voice AI Solves Real Problems
The best way to understand the power of insurance voice AI is through use cases. Whether it’s resolving queries of claims or ensuring policyholders don’t miss a renewal, voice AI helps insurance companies operate smarter, faster, and more customer-centrically.
Automating Claims Status and Document Collection
Claims processing is one of the most important yet time-consuming tasks in insurance. With insurance voice AI, much of this process is automated. This helps speed things up and reduces pressure on agents.
When a customer calls to check their claim status, the voice AI identifies them using their phone number or policy ID. It then fetches real-time claim updates from the system and shares the status instantly. If documents are missing, it lists what’s needed and can send a secure upload link through SMS or WhatsApp.
This leads to quicker resolutions, fewer delays, and better customer experiences. Our voice bot reduced follow-up calls by 40% just by giving timely claim updates. Insurance voice AI makes claims easier for both customers and insurers.
24/7 Policyholder Support at Scale
Insurance voice AI makes support available 24/7, even outside regular office hours. Customers can get quick answers to common queries like “When is my premium due?” or “How do I file a claim?” without waiting for a human agent.
In a multilingual country like India, voice AI bots can switch between Hindi, English, and regional languages in real time. This inclusive experience boosts customer satisfaction and accessibility. Companies using multilingual insurance voice AI saw a 25% rise in self-service rates among regional customers (NASSCOM, 2025).
Lead Qualification & Renewal Reminders
Insurance voice AI isn’t just for support, and it can also help boost revenue. It follows up with dropped leads within minutes, checks interest, collects basic details, and even sets up callbacks with human agents when needed.
It also makes proactive calls for policy renewals and uses voice tone and keywords to detect strong interest. This helps insurers focus on high-potential leads faster. Our voice AI now handles 80% of renewal reminders and has increased conversions by 18% in 3 months.
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Challenges in Deploying Voice AI in Insurance and How to Solve Them
While voice AI offers various benefits, deploying it in an industry like insurance isn’t very easy and cannot be overcome instantly. From data privacy concerns to language diversity and customer trust, insurers must navigate several challenges to unlock the full potential of voice AI.
Data Privacy, Compliance, and Trust Issues
Insurance deals with sensitive information, like personal data, claim histories, and financial details. That’s why compliance isn’t optional, and it’s the foundation of trust in the industry. When using insurance voice AI, data protection and regulatory adherence must come first.
Some key challenges include securing data during voice calls, following local regulations like IRDAI in India or HIPAA for health insurance, and gaining customer trust when bots handle private information. These concerns can slow down AI adoption if not addressed properly.
To solve this, insurers should choose voice AI providers that are ISO/IEC 27001 certified, offer secure cloud or on-premise deployment, and use consent-based voice recording and data masking. A well-designed AI call agent can follow compliance scripts more consistently than humans and never miss a single instruction.
Multilingual Complexity and Accent Understanding
India’s insurance industry serves a diverse population across multiple regions and languages. While text bots already struggle with this variety, insurance voice AI faces even tougher challenges, like recognising different accents, tones, and local phrases.
Some common issues include misinterpreting regional expressions, mixing up similar-sounding words, and having trouble with code-mixed language like Hinglish. These gaps can lead to frustration for both customers and support teams.
To fix this, it’s important to use voice AI trained on real regional call centre data. Accent-aware speech models fine-tuned for Indian languages like Hindi, Tamil, and Bengali perform much better. Adding a fallback to human agents when confidence is low also improves trust. In fact, such voice bots saw a 30% boost in intent recognition across key Indian languages.
Integration With Legacy Insurance Systems
Many insurers still use legacy CRMs, custom-built databases, or disconnected policy admin systems. For insurance, voice AI to work effectively, it needs smooth integration with these platforms. But challenges like non-API systems, data mismatches, and scattered customer information often get in the way.
To solve this, insurers should choose voice AI platforms with prebuilt connectors for insurance CRMs. Using middleware or data lakes can also help unify different systems. It's best to begin with low-risk use cases, like policy lookups, before expanding to more complex workflows. This ensures a smoother and safer rollout.
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SquadStack’s Insurance Voice AI Delivers Results at Scale
While many vendors offer generic voice bots, SquadStack has engineered a specialised voice AI solution tailored for the insurance industry's unique needs. SquadStack’s AI Agent is built to handle complexity, scale, and compliance without sacrificing customer experience, from policy sales to claims support and multilingual servicing.
Built for Insurance: Domain-Specific Intelligence
Generic chatbots can’t grasp the nuance of insurance queries like “What’s my sum assured?” or “Is liver cirrhosis covered under my term plan?” SquadStack solves this by incorporating a deep insurance context into its AI models.
SquadStack’s insurance voice AI is trained on millions of real calls from motor, life, and health insurance. It understands industry-specific terms, policy details, and legal requirements. The AI also adapts in real-time to different policy types and benefits, ensuring accurate and personalised conversations.
We chose SquadStack because it didn’t feel like talking to a bot. The AI understood insurance concepts better than some of our junior agents.
Multilingual Voice AI for Pan-India Reach
India’s insurance landscape demands voice AI in urban metros and rural Bharat. SquadStack’s AI agent supports voice interactions in over 10 Indian languages, including regional dialects.
This matters because it helps connect better with customers in Tier 2 and Tier 3 cities and semi-urban areas. The AI handles mixed languages like Hinglish and Tamlish smoothly. By offering localised conversations, it builds more trust and improves conversion rates.
SquadStack customers have reported 35% higher call completion rates in regional campaigns using vernacular voice AI agents.
Real Results: Uplift in Sales, CX, and Efficiency
SquadStack’s Insurance Voice AI brings powerful improvements to India’s insurance industry. It significantly boosts lead conversion and helps resolve customer issues faster on the first call. By handling more interactions automatically, it reduces the need for human agents, freeing up teams to focus on complex tasks.
Its strict compliance controls ensure every conversation follows regulatory guidelines, eliminating breaches. Overall, SquadStack’s platform delivers reliable, measurable results that help insurers improve efficiency, enhance customer experience, and grow their business.
Conclusion: Why Insurance Voice AI Is an Advantage in 2025
The insurance landscape rapidly grows as customer expectations grow and digital transformation accelerates. Insurance voice AI enables companies to provide fast, personalised, and round-the-clock service, helping to reduce issues and increase customer happiness. By automating routine interactions, insurers can free up human agents for more complex tasks, resulting in efficiency and cost savings.
Looking ahead, integrating advanced voice AI with multilingual and regulatory-compliant capabilities will become essential for insurers to thrive in diverse and competitive markets like India. Success lies in choosing domain-focused AI providers and adopting a phased implementation approach, prioritising critical use cases. With the right strategy, insurance voice AI will transform customer support and drive meaningful growth and innovation in the industry.
