WEF 2026: Bajaj General Insurance resolves 95% of customer grievances with Gen AI, says CEO Tapan Singhel

Tapan Singhel at Davos WEF

• Bajaj General Insurance resolves 95% of customer issues using AI chatbots
• Bajaj now fully Indian-owned after acquiring Allianz's stake
• CEO urges mandatory insurance for employees and MSMEs in upcoming budget

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Bajaj General Insurance company is addressing 95 percent of customer grievances through generative Artificial Intelligence chatbots, managing director and CEO Tapan Singhel told Moneycontrol on January 20 at the Davos World Economic Forum.

He pointed out that the achievement has been complemented by one of the highest Net Promoter Scores (NPS) or customer satisfaction with the company.

“Insurance has a huge amount of data, and where data is there AI plays a big role. And if I look at the industry, be it underwriting, claims, contact centres, reaching out to consumers, Gen AI is going to play a big role. More than 95% of customer grievances are being handled by bots,” Singhel said.

However, he emphasised the critical need for constant training to counter the tendency of AIs to "hallucinate." "You have to look at how to constantly improve and integrate it," Singhel said, calling the acceleration of AI's pace "marvellous."

While AI can easily manage the most common customer inquiries, such as policy clarification or delays, more complicated cases are still escalated to human agents, who are better equipped to handle them. Additionally, AI is currently assisting the company with basic underwriting and claims redressal.

"It has to move to the next level. I predict that in two years, you will see that it gets much, much better than what it is today," Singhel said.

FDI and Market Expansion

In a recent development, Bajaj completed the acquisition of its partner Allianz's stake, making it a 100 percent Indian entity. This move follows the central government’s recent amendment to the insurance bill, which aims to enhance Foreign Direct Investment (FDI) in the sector.

Singhel welcomed the FDI enhancement, pointing out the capital required for new entrants—a new insurance company needs approximately Rs 1,000 crore. He drew a comparison: while the US has over 6,000 insurance companies, India has only 17.

"Let's say 1,000 insurance companies enter India. You are talking about Rs 1,00,000 crores in investment," Singhel said. "An insurance company generates at least 25,000 minimum jobs, so you are talking about a couple of crores of employment generation."

Singhel also highlighted India's low insurance penetration, arguing that increased competition could solve the problem. Around 90 percent of Indian SMEs and MSMEs lack coverage, and a quarter of them go bankrupt following an untoward incident.

He suggested the upcoming Union Budget should address this by mandating compulsory insurance for both employees and MSMEs. "Make it mandatory for all employers to cover all employees. Take care of SME, MSME, take care of sectors where we have an issue in terms of when something goes wrong, and the impact it has on the economy," Singhel urged.