By Hemant Tathod
In the world of insurance, one size does not fit all. The need for customisation in insurance arises from the unique needs and budgetary limitations of customers. Everyone has their own challenges and aspirations, hence it is crucial to develop insurance plans that address their specific requirements.
Tailored insurance plans provide customers with many benefits and an additional layer of protection. These plans offer crucial benefits such as coverage for pre-existing diseases, protection against critical illnesses, outpatient benefits, and more, extending the scope of protection beyond the sum insured.
For instance, a person with a larger family may require a specially curated plan that covers the medical coverage of all family members of varied age groups and need-specific add-ons such as OPD cover, pre and post natal expenses. Similarly, individuals with high-risk occupations can benefit from plans that offer additional protection such as personal accidental cover, credit life insurance, etc.
Product customisation
The emergence of insurtech companies has played a significant role in enabling customisation in insurance. Insurtechs leverage technology to understand the challenges faced by the customers and their demographics such as family size, occupation, lifestyle, and city of residence. After thorough risk profiling using various data points, insurtechs gain a comprehensive understanding of their consumer segment. This in-depth analysis allows insurtechs to define personalised premiums that map with each customer’s specific risk profile.
By doing so, they ensure that customers pay premiums that align with their individual risk factors. For instance, based on default rates or risk assessments, insurtechs offer relevant insurance plans to customers, such as credit life insurance and personal accident cover. These plans are designed to alleviate the burden on customers and their families in the event of unforeseen circumstances.
Enhanced protection
Tailored plans not only offer customised coverage but also encompass additional services such as convenient access to teleconsultations with doctors, prompt roadside ambulance assistance, and comprehensive personal accident coverage.
With the advent of digitisation and technology, insurance can be seamlessly integrated into customers’ existing journeys. This ensures that insurance remains adaptable to evolving customer needs, allowing for effective coverage without unnecessary time or financial burdens. The flexibility empowers customers to modify their insurance coverage as required, thus optimising their protection while minimising any inconvenience or excessive expenses.
ONLY FOR YOU
* Insurtechs conduct a thorough risk profiling using various data points
* Premums are mapped to each customer’s individual risk factors
* Those with high-risk occupations can benefit from tailored plans
The writer is chief operating officer, Bimaplan