The Changing Life Insurance Landscape – How It Benefits You

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Insurance players are offering simple and innovative products to provide a better and seamless customer experience in the new digital environment.

The world came to a standstill with the 2019 coronavirus outbreak. But given the resilience the human race is known for, individuals quickly learned to fight back and overcome obstacles in 2020. The Covid-19 pandemic could well be a watershed moment for the insurance industry in India. Businesses strengthened and the Indian economy picked up. The bright side of travel has been the growth opportunity presented by the insurance industry.

Over the last year and a half, there has been a noticeable shift in customer preference and behavior. Individuals have started to see insurance as a necessary risk mitigation tool and not just an investment product. This has pushed the mostly traditional, people-driven insurance industry to go digital.

Product diversification

The insurance industry is constantly acclimating to new tools and platforms to meet changing customer needs. Insurance players are offering simple and innovative products to provide a better and seamless customer experience in the new digital environment. We are constantly evaluating how product features may need to change as well as how experience might be adapted to make risk protection relevant in the new normal. There has also been a major shift in attitude from pure product focus to improving customer satisfaction with personalized products. It depends on growing financial needs, life goals and risk appetite.

Underwriting decisions

Over time, life insurance companies have tightened their underwriting standards for protection policies and increased premiums after an increase in death claims during the second wave of coronavirus. In many ways, insurers are increasing their reliance on other underwriting sources by using AI models and adopting a method of virtual medical exams. This is poised to have a direct and positive impact on costs and timelines, making it an imperative part of overall issuance processes.

Overall, with limited optimism, we look forward to 2022 as an exciting time for the industry in terms of the size of opportunities, improved customer understanding, and technology-driven, customer-centric innovations. customer.

Digital assets

The “digital first” approach is slowly changing the way insurers traditionally interact with customers and provide personalized services. In fact, digital has gone mainstream and the whole operating model has changed to be ready for the “new normal”. It has also helped us compete with low-cost, full-service digital financial services. We will see growing collaborations between insurers and digital platforms that have the potential to enable more sophisticated online distribution, predictive underwriting and more efficient claims management.

The major shift from physical life insurance modes to online and digital modes has had a positive impact on the industry. There has been greater insurance penetration along with greater operational efficiency and a better product mix, tailored to different audience segments. Technology has led to better responsiveness and awareness of the importance of insurance, regulatory framework, market players, new and existing products and their end benefits.

Today, insurers not only provide an intuitive interface to underwrite contactless policies with just a few clicks, but also use technology to perform easy and hassle-free medical tests. In our business, in addition to the technology that enables the monthly onboarding of advisors, the adoption of online sales has been nearly 100%. Here, the platforms simultaneously connect the customer, the advisor, the sales manager and the contact center.

All customer-related queries are resolved by AI-driven chatbots. Additionally, insurers are making the claims process seamless by using multiple digital channels. All of these processes allow insurers to take the next step by reimagining the physical interaction, thereby maximizing productivity and improving the customer experience, which also includes resolving their claims as quickly and smoothly as possible.

Although there is a rapid shift to digitalization, agents will remain the backbone of insurance companies. The reason for this is that people always look forward to personal insurance and prefer face-to-face interactions with agents before investing their hard-earned money.

Predictive subscription

Validation of certain criteria such as insurable interest, age, income, sum insured, occupation, etc., which fall under the category of risk profiling, is performed to ensure a score is obtained. positive for a better understanding and categorization of requests. It is a rules-based underwriting method that issues policies directly to customers based on multiple parameters, after which a pre-approved sum assured (PASA) for certain customer segments allows them to purchase coverages hassle-free insurance.

At the organizational level, more than 95% of our new proposals are now registered via digital platforms. We are improving our customer service, especially in claims management by adopting the best technology and investing in relevant digital tools. On the other hand, our individual claims settlement ratio is one of the best in the industry at 98.54% (FY20-21), reflecting our efforts to settle claims quickly and transparently.

by Sanjay Tiwari, Chief Strategy Officer, Exide Life Insurance

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