India insurance growth to rely on AI and ecosystem partnerships

The Indian insurance sector is entering a new growth phase driven by artificial intelligence and ecosystem partnerships. According to a McKinsey report, future expansion will depend heavily on distribution effectiveness rather than just product availability. Insurers are reassessing traditional direct-to-customer models as customers increasingly use AI-powered search and conversational interfaces to discover products.

This shift may lead to agentic-led discovery models, where AI manages various stages of the customer journey, including engagement and cross-selling. The report notes that traditional models relying on aggregators have often resulted in high customer acquisition costs and limited direct ownership of customer relationships.

In tandem with these industry shifts, Edelweiss Life Insurance is implementing technological transformations to improve decision-making and distributor effectiveness. Kayzad Hiramanek, Chief Operating Officer at Edelweiss Life, highlights that technology is moving beyond simple automation to a role that influences core business decisions and customer customization through initiatives like Project Udan.