Insurers must adapt to New-age customers’ needs, leverage on the explosion of data and digital footprint and the changing investment environment.
Some of the ways of achieving transformation in Indian Insurance Sector can be illustrated as follows. There needs be a simplification of products in the areas of policy benefit, wording of policy, application process and the claim process. The insurers could focus on ‘One Need One Product’ scenario, where customers are provided simplified products that cater to their specific needs. Big Data technologies needs to be leveraged to enable augmentation of the traditional data with images, text, voice and IOT (telematics, wearables and drones). The Intelligence techniques could be encouraged which include machine learning from past experience and improve their prediction of fraud over time. The modern investment choices like private equity, property, derivative and digital for higher returns in the current low interest rate environment could be explored. Asset liability management that use qualitative and quantitative portfolio optimisation techniques can be leveraged to drive effective investment strategies.
Mr Chandrajit Banerjee, Director General, CII said, “The Insurance Industry is at the threshold of a long period of growth. With the rapid change in technology and digitisation, the drivers of insurance business are changing. Those insurers who disrupt themselves continuously would be the ones who will succeed in the long run. All stakeholders – the industry, intermediaries, government and regulator need to work together in transforming customer experience”.