The rise of intelligent documents: AI transforms insurance business

Document inferencing is turning every file into an intelligent data source, slashing insurance turnaround times.

The Document management might not sound like the future of insurance – but it is exactly where AI is making some of its biggest impacts.

“The document itself becomes intelligent the moment it’s received.”

“Document processing today goes far beyond simple indexing or filing. AI can instantly extract key attributes, identify the document type, sender and required action,” Gaurav Shahi, managing director, AI, data and alliances at Brillio, told Intelligent Insurer.

“All the inefficiencies of manual routing and handling are dramatically reduced. The document itself becomes intelligent the moment it’s received.”

Gaurav will explore the opportunities and challenges of agentic and generative AI for insurance at Intelligent Insurer’s Agentic and Generative AI for Insurance event on November 18, 2025.

He calls this evolution “document inferencing” – a shift from static files to living data sources. Unlike automation alone, it embeds intelligence throughout the workflow, so processes start the moment a document is received.

“In the past, multiple people processed a document before any decision could be made,” he explained. “Now, AI can immediately determine whether it’s a claim, a renewal or a policy endorsement.”

Insurers are already seeing measurable results. In personal lines, companies using document inferencing report efficiency gains of 50-60%, from the mail room to indexing. Faster turnaround times and improved underwriting accuracy are early benefits

The key, Gaurav notes, is how well systems are trained to mirror human decision-making. Technology can identify risk profiles like an underwriter – but success depends on how effectively AI recognises the attributes that matter.

In personal lines, where risks are more standardised, the impact is significant. Straightforward profiles, such as homeowners or auto insurance, allow near-instant decisions. Claims processes, while more nuanced, also benefit – particularly in medical or legal domains, where summarisation and triage can deliver substantial savings.

“Underwriting is where document inferencing has the broadest impact,” Gaurav said. “From receiving a risk to quoting, AI is transforming the value chain.”

Full automation won’t apply to every process. Complex commercial risks will still require human judgment. But in personal lines, Gaurav predicts 90-95% of decisions could be automated within five years. “The machine will present the decision and the top reasons behind it, leaving the human to approve or intervene.”

Achieving this transformation requires more than technology – it demands process clarity. “AI is only as good as the inputs it receives,” Gaurav explained. “You need to define the future workflow in detail and provide precise prompts for, document ingestion or risk evaluation.”

Seamless connectivity is another enabler. “APIs are the digital highways that allow systems to communicate,” he said. Where APIs are unavailable, batch processing can bridge the gap, enabling data to flow efficiently and decisions to be driven from the AI hub.

As automation scales, Gaurav envisions AI as an assistant, not a replacement. “In underwriting and claims, the machine will handle receiving, classifying and analysing documents – but humans will make the final decisions.”

For personal lines, however, near-total automation is on the horizon. Policies could be approved in minutes rather than days, reshaping the customer experience.

Looking ahead, Gaurav predicts the next wave of document intelligence will be defined by customer experience and operational efficiency. “Insurance is a promise, not just a product. Manual processes lock in cost and inefficiency. Leaders who adopt document inferencing will lower processing costs – and pass those savings to customers.”

As adoption grows, the market itself will shift. “New leaders will emerge – brands that are faster, more efficient and more competitively priced. Document inferencing won’t be optional; it will be hygiene. To compete, insurers must embrace it.”

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