Whether we like to admit it or not, the COVID-19 pandemic has transformed some things for the better. Let’s take the insurance industry as an example. It has gone through a lot recently, changing its perspective, striving to add better value to society, and, most importantly, adopting digitisation. Digitisation alters the traditional approach and brings substantial transformation. Although the much-awaited digital transformation arrived later in India, it’s better late than never.
Forecast of the Indian insurance industry
Supported by digitisation, the insurance industry grew by 17% this year, in April-May. The Finance Ministry, as well as the Insurance Regulatory and Development Authority in India, is confident that this area of activity will undergo a 40-50% growth in the years to come. The sector comprises 24 companies that are in the life insurance business, while the other 34 are non-life insurers. India is the second-largest insurance technology market in Asia-Pacific, accounting for roughly 35% of insurtech investments.
It can be argued that India needs more private insurance companies. Many important market players belong to the market sectors. The most significant government-owned insurers are LIC of India, New India Insurance, GIC of India, and Oriental Insurance, just to name a few. Better private sector participation would solve pressing issues such as low levels of capital and the difficulty of offering affordable insurance products.
Digital insurance and its trends in India
Digitisation has the power to completely transform the insurance industry, and society, in general. It imposes a win-win environment and quality of life for insurers and customers alike. Insurance companies, in particular, take advantage of tools such as websites, apps, email, social media, and so on, to reach out to customers. In what follows, we’ll briefly present the main digital trends in the insurance industry.
Getting insurance coverage with just a few clicks
These days, it’s possible to buy an insurance policy over the Internet. The process is seamless and it strongly resembles shopping through an e-commerce platform. If a person needs, say, barber shop insurance, they seek to find the right policy for their needs. Almost every insurer makes available quotes, therefore, enabling customers to select and purchase different types of insurance online. It’s no longer necessary to meet an insurance agent in person. If a few years ago insurance was acquired mainly via offline channels, at present, it’s a completely different situation.
AI and automation for faster claims
With the advent of deep learning techniques, artificial intelligence (AI) is able to deliver on its promise. The insurance industry has made the transition from the state of detection and repair to that of prediction and prevention. AI meets expectations through machine learning and deep learning. Insurers can enhance the turn-around time of claims, not to mention the underwriting process.
Customised insurance policies
Gone are the days of traditional insurance policies. Owing to insurtech, products and services meet the needs of modern customers. Rather than taking a one-size-fits-all approach, insurance companies can deliver a personalized experience. Offerings aren’t personalised on the individual level. Insurers focus their attention on a specific segment of the audience, characterised by various traits. At any rate, insurance will become more relevant in the long term.