Though the model has been quite robust, the insurance industry is reinventing itself to new heights where it is going through a profound change and transformation primarily driven by technological advancements focusing on enhancing the customer experience at each touchpoint. Insurance companies are leveraging their industry experience and the new age of innovative advancements to provide their customers with more personalized and customizable product solutions and related services.
Insurance companies are leveraging their industry experience and the new age of innovative advancements to provide their customers with more personalized and customizable product solutions and related services.Advancements in the technology field have taken the world by storm and emerged as a powerful tool that is reshaping the insurance industry.The insurance business has long been a conversational sale, but with digitalization, it has moved towards a hybrid model – the ‘phygital’ model.Standard and vital insurance processes like policy issuance, claim settlement, pre-medical check-up, and the like, which were predominantly paper-based, are now being augmented with digital integration to ensure a seamless customer experience and streamline processes. In the insurance sector, it has been a game changer in redesigning the customer experience.Technologies like machine learning, artificial intelligence, automation, and data analytics have played a significant role in digitizing insurance processes.Through AI-Powered chatbots and virtual assistance, insurance companies are instantly providing personalized customer service especially in claim management, renewal process, and even customer grievances.AI algorithms, combined with machine learning models, are being used to make underwriting, an essential process in the insurance industry, more efficient and accurate, enabling insurers to tailor products based on the customer’s risk profile.With process automation, manual processes like policy issuance, claim process, and query resolutions are being addressed on the go, giving customers a hassle-free experience while increasing productivity and operational efficiency.From a strategic point of view, advanced analytics and AI have helped in data-driven decision-making and product innovation, which in the larger scheme of events has helped bring customer-centricity.To reach every household, there must be a collaboration between the government, the regulator, insurance companies, insurtech/ fintech companies, and external agencies, driven by technology.Governing and regulatory bodies are stepping up their initiatives in line with the digital revolution to take insurance products to every corner of the country.Initiatives like Bima Sugam and ABHA are a step towards making insurance and related services accessible to everyone and ensuring they are adequately covered. ABHA (Ayushman Bharat Health Account) is an initiative to help take health insurance to every nook and corner of the country powered by technology.ABHA paves the way for implementing the health claim exchange, which will integrate the whole healthcare ecosystem, i.e. the hospitals, insurers, healthcare service providers, and TPAs, into a single platform to ensure a seamless exchange of information and data and hence will help reduce the TAT of the claim process, eliminate or lower fraud, and bring uniformity, making the whole process digitized and hassle-free.Similarly, active collaboration has already taken place with , a data repository and analytics body for the insurance sector in India, and this could potentially address the issue of under-penetration, NCB leakages, and fraudulent claims, among others.
