Insurance is one of the most effective ways to manage risks and secure assets; however, the insurance industry has been mainly susceptible to trust issues. Many people believe that insurers do not pay claims, but the data says otherwise; the industry has been paying claims and is bleeding.
In India, for every Rs 100 collected as a premium by the general insurers, the outgo is Rs 118, demonstrating the substantial impact of insurance in benefiting millions of people.
The other major issue surrounding the insurance sector in India is the lack of awareness and accessibility.
The industry is working relentlessly to solve these issues, and technology plays a decisive role in helping insurers address these challenges.
Let’s begin by looking at how technology is solving the issue of awareness and accessibility. Information about all kinds of insurance products is readily available on the internet, and people can understand product coverage, importance, and exclusions with a few simple clicks. Since insurance is a legal contract, customers usually find policy wording complicated and difficult to understand.
But today, we have a generative AI-powered bot that explains various policy aspects to the customer in simple, conversational language. Once a person gathered enough information about the product, they can purchase the policy online, eliminating the need to visit the insurance company's office.
The other challenge for a customer is policy management once the insurance cover has been purchased, and technology is helping address that, too.
Almost all leading insurers have their mobile application, which empowers customers to manage their policies seamlessly, anytime and anywhere.
Policyholders can purchase, renew, or modify their insurance plans through these user-friendly platforms with just a few clicks.
This accessibility not only saves time but also ensures that customers have instant access to various essential policy details.
Now let's talk about claims, the most critical aspect of a customer's insurance journey. Insurers know how important the time of claims is for a policyholder, and they constantly strive to improve the claims journey of the customers; this is where technology is creating a huge impact.
Gone are the days of lengthy paperwork and cumbersome processes; today, claims are settled in days, hours or even minutes.
With the integration of artificial intelligence (AI) and machine learning algorithms, insurers can now assess claims much faster and more accurately.
Many insurers are now offering on-the-spot claims settlement, in which the customer has to just upload the images of the damaged part, fill in some requisite details, and receive the amount in a few minutes.
Insurers have also started using drones to settle claims during natural calamities like floods. With the rise of natural disasters across the country, insurers will continue to develop more effective claims processing mechanisms, which will ensure that customers receive prompt support and pay-outs during such difficult times.
Similarly, in the health insurance domain in India, the entire industry has come together to simplify the lives of customers by launching 'Cashless Everywhere,' a unique initiative that gives customers access to network hospitals of all insurance companies.
This means customers can now avail cashless claims settlement facilities not only in the network hospital of their insurer but also in the hospitals empanelled by other insurance companies.
The move will substantially reduce the financial burden on policyholders and enable them to avail quality medical care with unprecedented ease.
Quick claim pay-outs provide much-needed financial relief to customers during dire times of need, and technology will continue to play a pivotal role in swift claims settlement.
Traditionally, the insurance industry had standard products with little or no customization. This means customers had to choose from the standard coverages; however, a revolution is shaping the sector with the advent of Generative AI and other advanced technologies such as Machine Learning, Big Data, and Analytics.
With the help of these technologies, today, insurers are increasingly offering tailored responses and solutions that precisely match each customer's unique requirements, enhancing satisfaction levels.
The next generation of AI will cater to individual needs with unparalleled precision, leading to more personalized and efficient service experiences
To sum it up, technology is fundamentally reshaping the general insurance landscape, empowering customers with greater convenience, efficiency, and personalisation. As technology continues to evolve, insurers must embrace innovation and adapt to meet the ever-changing needs and expectations of their customers in the digital age.