Most successful people say that challenges help us in identifying our true potential. And it seems right because a similar thing has happened with India’s insurance sector.
The year 2020 was tough in was insurance sector but in these tough times, the changes that have occurred are remarkable in the industry. Changes that would have probably taken years otherwise have been implemented at an increased pace in these times. And the most important change is the introduction of online processes.
Many new products have been launched in these times like in health insurance, short-term policies are introduced. Telemedicine where patients are treated using telecommunications lunched. Life insurance where the whole process was offline, now has shifted to online.
One of the most important changes that were brought in by the Insurance Regulatory and Development Authority of India (IRDAI) was the standardization of insurance products. It has enabled insurers to launch insurance products with similar features. It has helped people in understanding policies and in getting insurances at affordable rates. For Covid-19, in particular, policies like Corona Kavach, Corona Rakshak, etc. have launched.
Traditional methods of insurance have been replaced. Now, the buying of insurance, settling of the claims, etc. all have become digital. When it comes to settlements, few intermediary websites are there which help in completing the process for claim settlement online.
If we talk about digital tools then, in modern times, artificial intelligence has gained importance. It can help in the claim settlement process. The process can become more fast and transparent due to that. Apart from that, it can also help in preserving policyholders’ data for providing customized devices. Risk mitigation can be reduced by using modern technological tools like virtual assistance, boats, etc.
Expected benefits due to the shift:
Speedy process : Because of the online process, the whole process of buying, claiming, etc. has become faster.
Transparency: Chances of fraud settlements have been reduced and transparency has increased due to digitization.
Comfort: Because of digitization, people are now able to purchase insurance from the comfort of their homes. In these times, safety has become an important factor.
Customer satisfaction: digitization helps in increasing customer satisfaction.
Cost–efficiency: All physical processes have started operating online and it has helped in reducing many costs.
Conclusion:
The insurance industry is in midst of major reforms now. Businesses have to adopt newer technology as fast as possible to remain in the market. Insurers need to understand customers’ expectations and should make processes accordingly.
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