What Life insurance industry trends will shape up the insurance sector in 2020?
According to a recent report, the life insurance penetration in India is less than 3 percent of the entire GDP with a population of more than 1.33 crores. This is perhaps due to the perception of people that have not changed towards life insurance product. Industry experts suggest that life insurance is still looked like a product that is required during uncertainty in terms of the death of the policyholder. That is the reason families are not secured against an emergency caused because of the end of the sole earner in the family.
However, now with the boom in digitalisation, the life insurance industry needs to put in necessary efforts to reach people and make them aware of the importance of life insurance. The term ‘digitalisation’ itself is the most significant trend that has disrupted and transformed almost the entire world. And the life insurance industry is no less, day by day it is getting at par with the other sectors in terms of technological advancements.
“Digitalisation is among the most significant life insurance industry trends that are going to shape up the insurance industry in a big way.”
Here are some of the critical digital life insurance industry trends:
Personalisation through digitisation
Customers nowadays prefer personalised insurance coverage based on their requirements rather than one standard insurance plan for all. With the help of digital tools like insurance calculators, they can easily evaluate the right premiums and coverage amount along with availing free insurance quotes and compare multiple policies at one go.
Moreover, through digital analytics, insurance companies are now continuously collecting data on various aspects to make their services better and more appropriate as per the customers’ choices. For example, from time to time, they conduct surveys to know the market status or customers’ changing behaviour to decide upon their further action plan. They also ask for feedback or sent a review questionnaire to improvise their services as well as to know what customers want. The surveys and questionnaires lead them towards more accurate assessments of the market and customers and help them in providing more customised user-driven services. This would further result in building a loyal customer base for the brand. The digital medium is also great to reach and engage customers more closely with the brand.
Chatbots to improve the operational functions
Technology has been a boon for every sector across the world, and there is no denying that it has proved to be very beneficial for the insurance sector as well. As per a recent report, technologies like Chatbot are expected to grow at a significant rate in the next few years. Life insurers are not behind of making use of technology to its optimum level to offers cost-effective services to the customers along with fastening the entire policy issuance process. Tools like Chat-bot, Internet of Things (IoT), machine learning and more will boost the automation in the industry resulting in more productivity and efficiency.
Automation and Artificial Intelligence (AI) to ensure faster claim settlements
The claim settlement process is another aspect of the insurance industry that can be positively get affected by the digital medium. Considering the number of verifications and manual efforts that is required to be put in, claim settlement is a long and tedious process. But with the help technology like automation, all the necessary information needed for the claim verification procedure can be quickly processed. As insurance companies can track down the essential details available in the blockchain. This will help in automating policy servicing, faster claims management, along with more personalised customer service.
Underwriting is an essential aspect in the insurance sector which technology could shape up in a new way. The vast customer data is required to be processed in real-time by different insurance purposes for a secure transfer of data across the organisation. Due to which, insurance companies are opting for analytics and AI to have corrected insights for a large amount of data to improve the accuracy and speed-related underwriting. This is one of the most significant technological trends to shape up the insurance industry soon.
Blockchain technology provides the benefit of securing data across multiple stakeholders and interfaces without losing the reliability factor. This technology reduces the operational costs for all the functions starting from identity management, underwriting, data availability to claim settlement process.
Overall, the advent of technology and the digital era are undoubtedly among the most prominent life insurance industry trends that have helped customers with the ease of understanding and buying life insurance products. All these technologies will transform the insurance industry in terms of increasing efficiency, faster process, and more customised services. BimaKaro.in is one such technology-driven platform that offers personalised insurance quotes and superior customer service. For any insurance-related query, you can visit BimaKaro.in.