India’s insurance sector is undergoing unprecedented unique modernization –
- Rapid digitalisation
- Adoption of modern techniques to tackle fraud
- Exploring of new avenues for risk management, customer engagement, operating models, investment and distribution.
The new-age customer today demands simpler terms, transparent underwriting, easily understandable benefit structures and minimum human interaction. Product innovation now is no longer considered as an exercise for making a complicated and intricate product, but an attempt to simplify and connect to the customer in a more hyper personalized manner like never before.
In place of all risk products, customers are demanding simple one risk cover products which are simple and easy to understand and therefore allow customers to choose distinct individualized need based covers. The language and other aspects of the policies need to be simplified and uncomplicated to keep pace with the expected customer centricity.
Penetration of insurance being low is not a new reality. Only 4% of India is insured, which means “there is plenty of room for new opportunities to grow,” as said by Mr. Natarajan. The spread of life insurance in India was just below 1% when the insurance industry opened up to private audiences in 2001. This is among the lowest globally, according to a statement by the Insurance Regulatory and Development Authority of India.
A joint PwC-CII report estimated that yet more than 98% of life insurance policies are sold directly. And hence Distribution partners today will need to use technology tools to fit into a digital virtual future, it said. The way in which the Indian population is scattered makes it costly for Indian insurers to operate small and big shops across tier-II and tier-III cities, either directly or via distributors. Digital technologies will help insurers to address this challenge by reaching out to their clients directly through self-service options.
The customer experience of engaging with an insurance company through digital channels will however require not just technology implementation, but also a vigilantly thought out user experience strategy. The ‘Digital Natives ’ who will use these services have unique needs at the personal level and designing an individual experience for them will go a long way in addressing the complications an insurance customer faces in today’s changing life.
- Started with the core mission of simplifying insurance, AdWISE Assure predicted technology as a major differentiator to achieve this objective.
- The onboarding policy of AdWISE Assure is completely paperless. Example: While onboarding a customer for a motor policy, the company asks customers to take pictures of the vehicle, with no need of an assessment officer. The pictures of two-wheeler and four- wheelers are processed using image analytics, artificial intelligence and machine learning to onboard the customer in a few minutes.
- Also the entire inspection process is automated, in this way.
- Major focus is at automating the simplest of repetitive tasks that would eventually make sure freeing up of manpower for innovation.