Transforming Insurance with AI - Examples from Germany

The integration of artificial intelligence (AI) in the insurance industry is rapidly transforming various aspects of business operations, from sales and customer service to underwriting and claims processing. The increasing sophistication of generative AI (GenAI) and AI assistants is prompting insurers to leverage these technologies to enhance the customer experience (CX) and improve decision-making. This blog post explores the growing role of AI in the insurance sector, providing examples from the German insurance industry.

AI-powered sales, service & marketing

Insurance companies are expanding the use of AI across the value chain, spanning customer-facing and internal processes. Adoption is accelerating in key areas such as sales, service, marketing, underwriting, claims processing, and policy administration. The advancement of GenAI and AI assistants (copilots) has further intensified interest, driving implementation across the industry. It is important to note, however, that most initiatives involving GenAI are still in the testing or pilot stages.

One of the most prominent use cases of GenAI is in customer service, where virtual agents enable 24/7 support and efficiently handle FAQs. These virtual agents promise to reduce response times, increase first-contact resolution rates, and improve customer satisfaction. Another hot topic is “agent assist” or agent copilots, which enhance customer interactions by providing tailored recommendations and solutions for contact centers and sales teams. Some examples:

• Agent copilots in sales: Since February 2024, Nürnberger insurance agents have been able to provide digital advice and conclude corporate health insurance policies. Using the XEMPUS solution from the fintech company of the same name, the digital consultation process supports sales talks and guides agents through customer interactions. In 2023, several other insurance companies opted for the XEMPUS solution, including Alte Leipziger, Gothaer Lebensversicherung, Continentale Versicherung, and Barmenia.
• Agent copilots in customer service: In February 2025, Allianz announced that it had introduced the Enterprise Knowledge Assistant (EKA), a GenAI-powered copilot that provides call center agents with instant information. EKA leverages large language models (LLMs) and retrieval-augmented generation (RAG), model fine-tuning, and a multi-agent design to maximize accuracy in responses. It enables call center agents to retrieve relevant information from Allianz’s knowledge library, reducing the time spent searching manually through documents. EKA provides document summaries and direct links to full documents. Allianz’s internal teams developed the copilot.

AI-powered underwriting

Underwriters set prices for insurable risks, but their job is getting more complex: stricter regulations, new technologies, and emerging risks like climate change and geopolitical instability make risk assessment and policy pricing more challenging.

In this context, AI’s strength lies in its ability to quickly analyze large amounts of data, assisting insurers with tasks such as information gathering, risk assessment, and fraud detection.

Moreover, GenAI copilots recognize patterns and make precise predictions about potential risks, which enables underwriters to make well-informed decisions regarding policy pricing and coverage. These models also help tailor policies to individual customers based on their specific needs and risk profiles.

• Agent copilots in underwriting: In May 2024, Munich Re announced the integration of an AI-driven copilot into its own cloud-based underwriting platform REALYTIX ZERO, which is in use at 50 customers worldwide (for instance, at ERGO Germany). The new copilot enables underwriters to change and adapt insurance products, create completely new insurance products, and understand already implemented product logic and premium calculation.
• Other insurers, such as Generali Germany, Barmenia.Gothaer, and Münchener Verein Versicherungsgruppe, partner with Munich-based fintech Fusionbase to enhance their underwriting process with external datapoints. The insurers use Fusionbase’s AI-based solution, a smart underwriting dashboard based on Fusionbase’s Data Hub, which is linked to data from a wide range of public sources. Using AI, underwriters can quickly compile risk-relevant information such as financial ratios, business activity descriptions, etc.

AI-powered claims processing and settlement

In claims processing and settlement, copilots help claims adjusters review cases, detect fraudulent claims, and automate document verification. Moreover, in times of deepfakes, GenAI’s ability to detect distorted or AI-generated photos and videos reduces the risk of fraud in insurance claims.

• Allianz relies on AI to identify and prevent fraud (among other AI use cases). All claims are checked using AI based on predictive models, image recognition, and assessment guidelines. In the case of anomalies indicating a fraud attempt, Allianz experts check the relevant claims again separately. Generali also uses AI in its health insurance business line to check documents, such as receipts provided by policyholders.
• Despite the potential efficiency gains for insurers from leveraging AI in claims processing (specifically when it comes to First Notice of Loss), it is important to assess market acceptance first. For instance, a study by Brand Science Institute published in March 2024 shows that 78% of individuals reject AI being used for processing their car damage claims (such as the tool offered by Allianz for smaller car damage).

Younger consumers are more open, especially for smaller claims, but some skepticism remains, especially regarding high-value claims. This is why it is crucial to understand that while AI will provide valuable support in underwriting and claims processing, it will not fully replace human interaction.

Overall, AI is transforming the insurance industry by enhancing efficiency, customer service, and risk assessment. As technology evolves, AI will increasingly support human expertise and drive innovation across the sector. However, insurers must carefully consider market readiness, especially when it comes to services like high-value claims processing, where customer acceptance may still be a challenge.

Recommended further reading: 

Expert View: Autonomous Customer Service Agents
Expert View: Multimodal Customer Engagement
Expert View: Artificial Intelligence Use Cases for Banks – Examples from the German Financial Services Sector
Insurance – InSight Analysis – Germany