By Ankit Agrawal
The insurtech sector is witnessing rapid adoption of new technologies such as Artificial Intelligence (AI), Machine Learning (ML), Internet of Things (IoT), cloud computing and blockchain. The increased adoption of these technologies has resulted in more efficient underwriting, less documentation, faster and better claims experience and almost instant turnaround times leading to vastly improved customer experience and increased customer loyalty.
With secured data-driven and automated solutions, fraud detection and claims processing is now being done with greater ease. These technological benefits will help insurers improve their service, boost penetration in different markets and accelerate claim procedures while reducing their cost overheads.
Data is at the core of every process — from underwriting to claims and renewal. While usage of various kinds of alternate data in the insurance industry began a few years back, 2023 is the year when it will go mainstream. With the right set of data in hand, insurers can automate and execute various aspects of a policy like underwriting, issuance, and claims almost instantaneously, making issuance faster and affordable.
In India, traditionally the same pricing is paid by all customers falling in a defined broad cohort. However, with the insurance regulator introducing reforms and digitalisation making bespoke solutions possible, insurers are now introducing products where premiums are charged based on specific customer behaviour and risk profile. For example, it is now possible to buy a motor policy where premiums are charged based on the kilometers driven and driving behaviour.
Embedded insurance refers to the integration or bundling of insurance in the buying journey of a product or service that a consumer purchases. It can be either complimentary wherein the insurance is included in the product price or voluntary that can be purchased separately by the customer. A common example is the ‘trip insurance’ that can be bought by checking a box at the time of purchasing an air ticket.
Insurtech companies will harness the power of technology to streamline the claim process, making it convenient and transparent for customers. Gone will be the days when customers delayed reporting a loss or waited for the claim adjuster to assess the impact of loss. Today, customers want digitalised claims with a 24-hour turnaround. Hence insurers must transform their operations to offer dynamic, cost-effective, and efficient claims for a better customer experience. With an infusion of technology and data, claims management will be more streamlined and accurate.
The writer is founder & CEO, InsuranceDekho