Revolutionizing Insurance Distribution with Generative AI: Insights from Bhaskar Kalita

In the latest episode of Insurance Unplugged, host Lisa Wardlaw was joined by Bhaskar Kalita , Global Head of Financial Services and Insurance at Quantiphi , a leading voice in AI for financial services and insurance. The two explored the immense potential of Generative AI (GenAI) in transforming the insurance distribution value chain. If you’re in insurance—especially distribution—this episode is a must-listen, as it breaks down the difference between traditional AI and generative AI, practical applications, and how to start leveraging AI effectively.

The Evolution of AI in Insurance

Traditional AI has been integral to insurance for years, particularly underwriting and risk assessment. As Kalita highlighted, insurance is an industry built on “mathematical relational computations,” making it a natural fit for machine learning and predictive analytics. However, the challenge has always been the manual, fragmented, and often inefficient nature of insurance distribution. This is where the next evolution—GenAI—can make a difference.

What is Generative AI?

"GenAI gives a completely new paradigm of how AI can be used because you generate new content." -Bhaskar Kalita

Unlike traditional AI, which is trained on specific datasets to recognize patterns and produce predetermined results, GenAI can create new content. Kalita explains that this paradigm shift allows systems to generate responses based on a wide range of inputs, not just the data it has been explicitly trained on. This opens up new possibilities for generating more dynamic, contextual, and real-time insights across the distribution process.

One game-changer Kalita mentioned is RAG (Retrieval-Augmented Generation), which combines the best of both worlds. It retrieves relevant information from vast data sources and augments it to provide contextually accurate responses, minimizing the risk of irrelevant or “hallucinated” outputs. This is crucial for brokers and agents who need immediate access to relevant data, especially when making decisions with clients in real-time.

Why Brokers and Agents Should Care

Kalita emphasized that the number of variables brokers and agents deal with has increased exponentially in the last 20 years. From risk factors to regulations and customer demands, no one can keep all the relevant data in their head. This is where GenAI becomes invaluable.

“GenAI or RAG implementations can be a great solution, where the information exchange can be minimized, and you can all relate to the same source of truth all the time.” -Bhaskar Kalita

GenAI, through RAG and other techniques, allows agents to have that information at their fingertips, improving the customer experience and reducing the time spent on multiple rounds of communication.

For brokers and agents, this is no longer a “nice-to-have” but a competitive necessity. Having the right information instantly, with minimal back-and-forth, is critical for delivering the customer service that modern clients expect.

Real-World Application: Policy Comparison

One of the most significant pain points in insurance distribution is policy comparison. Traditionally, brokers and agents had to manually compare quotes, proposals, and policies, often across disparate systems and with significant risk of human error.

"It's all taken care of automatically by the AI. It will also take you to spots where the information doesn't match what the customer asked for versus what the quote has. It will immediately check and validate. Okay, these are the points that look great. You don't have to look at them. It almost eliminates the entire review process, and I intentionally use the word almost because, in the insurance world, checks and balances are in place before you put systems through unmanned or unsupervised processes. You need a human-in-the-loop where a reviewer looks at it and validates it." -Bhaskar Kalita

Kalita shared an exciting use case with Quantiphi’s platform, Dociphi. Using GenAI, they’ve developed a solution that automates much of this comparison process. Instead of manually reviewing documents line by line, brokers can receive a summary comparison in minutes, with the ability to focus only on critical discrepancies. This not only saves time but also ensures higher accuracy and consistency.

In Kalita's words, “We have seen at least 40% efficiency gain across the board, and in some cases, we’ve brought down these reviews to under 30 minutes.”

"One of the use cases that Dociphi solves is around policy comparison, where a policy is bound upon renewal or a new business, and it is mandatory for you to compare it to the code issued." -Bhaskar Kalita

AI as a Service: A Strategic Imperative

Kalita also touched on the concept of AI as a service (AIaaS), advising that companies must approach AI with a clear, intentional strategy. AI is not a side project—it needs to be integrated into the business's core operations. From advising on how to select the right AI partners to ensure a structured approach to AI adoption, Kalita stressed the importance of starting with advisory services, identifying high-impact use cases, and ensuring alignment across the organization.

"I will suggest that you be knowledgeable, don't do ad hoc starts, and make an intentional effort in terms of setting up a thoughtful approach of first getting advice, identifying your hotspots, and then creating an office that is meaningful enough within the organization that can make a change." -Bhaskar Kalita

Key Takeaways: Start, Stop, Continue

At the close of the episode, Kalita offered actionable advice for brokers and agents on how to approach AI:

? Start: Track activities that enhance customer experience, could be delegated, or improved. Begin your transformation by identifying these opportunities.

? Stop: Stop assuming large-scale transformations are slow and costly. Small, impactful AI projects can deliver quick results.

? Continue: Once you’ve identified areas to improve, deploy AI solutions that address these specific needs and gradually scale up.

The Future is Here: Generative AI in Distribution

"You are creating a system. We are trying to solve a use case that will bring significant efficiencies. The speed at which operations can run, the experience your end customer will get, and the carrier community. They will see a much faster turnaround. I think these are all going to improve the entire distribution ecosystem." -Bhaskar Kalita

Generative AI isn’t just on the horizon—it’s here. And it’s proving to be a game-changer for insurance distribution. Kalita pointed out, “AI can save you so much time and effort, but it’s crucial to pursue it with the right tools and partners.” With generative AI and tools like Dociphi, we’re seeing efficiencies of 40% or more, making this technology indispensable in the evolving insurance landscape.

Call to Action: It’s time to embrace AI in distribution. The tools, strategies, and use cases are here, ready to optimize and streamline your operations. Don’t miss out—reach out to learn more about how generative AI can transform your business today.

For more, click here to listen to the full episode of "In the Hot Seat" from Insurance Unplugged with guest Bhaskar Kalita and host Lisa Wardlaw . Thank you to IRYS Insurtech for sponsoring this season of Insurance Unplugged.

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