The general insurance industry in India is undergoing a major transformation thanks to new technologies. Insurers are leveraging the power of technology to improve efficiency, increase reach, and provide better customer service. Some of the key ways in which technology is revolutionising the general insurance sector are:
Increasing Reach Through Digital Channels
Technology enables general insurance companies like ACKO General Insurance to expand their reach beyond traditional distribution channels. ACKO offers its insurance products primarily through digital channels like its website and mobile app. This makes the purchase process extremely convenient for tech-savvy customers. ACKO leverages social media platforms and digital marketing to increase awareness about its innovative products. Robust analytics help the insurer better understand customer demographics and preferences so it can customise product offerings.
Streamlining Processes with Automation
Many manual and repetitive back-end processes are being automated to improve efficiency and reduce costs. From customer onboarding to claims management, automation is playing a big role. Chatbots are handling basic customer queries, robots are processing documents, and AI algorithms are assessing risks and claims. This enables human agents to focus on more value-added tasks like sales and service. Automation also minimises human errors and reduces turnaround time.
Enhancing Customer Experience
From online policy sales to app-based servicing and claims management, technology is dramatically improving the overall customer experience. Customers can now sign up without using paper, get help in real-time, and have their claims processed faster. This makes insurance more personalised and transparent. Many insurers are also offering self-inspection features where customers can assess damage via video and images submitted through the insurer’s app. This speeds up claim processing.
Making Informed Data-Driven Decisions
Vast amounts of customer data, coupled with the rise of advanced analytics, are enabling more informed underwriting, pricing, and claim processing. Predictive modelling helps insurers forecast risks better. Image recognition and sensor data analytics allow for more accurate damage assessments. Overall, data-driven decision-making minimises risks and losses while identifying profitable market opportunities for insurers.
Preventing Frauds with Technology
Fraud detection is one of the major focus areas for technology investment. Analysis of structured and unstructured data from multiple sources makes fraud identification faster and more accurate. Location data, image analytics, natural language processing, and network analysis can pinpoint fraudulent claims effectively. This protects the profitability of insurance companies. Technology also allows insurers to spot false information provided by customers at the time of policy purchase or renewal.
Offering Innovative Products and Covers
Technology innovation has opened doors for new types of insurance products and covers. Pay-as-you-drive motor policies, microinsurance products, and usage-based covers are gaining popularity. Dynamic risk modelling allows insurers to offer personalised premiums based on each customer’s unique profile. For commercial clients, insurers are offering coverage for new risks like cyber attacks, reputational damage, and political risks. Technology enables real-time underwriting for such modern risks.
Adopting Cloud Computing and Mobility
Many insurance companies are shifting core applications and infrastructure to the cloud. This increases business agility and scalability and reduces costs. Mobility enables anytime-anywhere access, which boosts employee productivity. Field agents equipped with mobile apps can get real-time data on the go, improving customer service and increasing sales conversion.
Collaborating with InsurTechs
InsurTechs like ACKO are technology-led insurance startups bringing innovation to the sector. Incumbents are partnering with InsurTech firms via accelerators and innovation hubs. This helps insurers gain exposure to emerging technologies like IoT, blockchain, and AI. InsurTech collaboration enables legacy insurers to enhance their digital capabilities and deliver superior customer experiences.
Conclusion
Technology is radically altering business models in the general insurance industry. While there are implementation challenges, the long-term benefits clearly outweigh them. Technology is helping insurers become more efficient, make better decisions, curtail frauds and reach new customer segments. However, the human touch remains indispensable – especially for customer support during claims. Thus, achieving the right balance between automation and human intervention will enable insurance companies to harness technology optimally. Going forward, insurers must ramp up technology adoption to remain competitive while delivering value to customers.
