Product innovation gains momentum as the industry prepares to move to digital overdrive
In 2020, people began to buy insurance because of product innovation and the urge to protect their families in the event of a Covid-19 event. Most life and health insurance products were in direct demand from customers.
But in fact, the insurance industry was already driving pre-Covid innovation. Just in January, India's Department of Insurance Regulation and Development (IRDAI) approved a number of sandbox products aimed at making insurance cost-effective and more appropriate for its customers. "Products that have gained significant traction include Edelweiss SWITCH for Edelweiss Insurance, Pay-As-You-Go Insurance for Bharti AXA Insurance, ICICI PruLife Insurance Outpatient Health Insurance, and Go Digit Insurance Network-based Accidental Car Rental Insurance." Vaidyanathan Ramani, Head of Products and Innovation at Policybazaar.com, said.
Single Owner of ICICI Lombard Comprehensive Insurance-Multiple vehicle products was also popular. Sandbox products such as Pay As You Use and Pay How You Use were entered in a timely manner as people refrained from driving during the blockade. Sandbox products are products with features that are not permitted by existing regulatory frameworks. IRDAI has limited a customer of 10,000 rupees or a premium of 50 rupees to such products. Sanjay Datta, Head of Underwriting, Reinsurance, and Claims for ICICI Lombard General Insurance, has reached limits and insurers are waiting for regulatory clarification on how to move these products forward. ..
In March, regulators instructed insurers to include Covid-19 in all insurance policies. The pandemic was previously exempt. In addition, the launch of standardized Corona Kavach and Corona Rakshak policies has enabled low-income families to access Covid covers at a low cost.
Underwriting rules and customer service have also undergone major changes. "Currently, there is a virtual investigation into complaint notification. The use of teleconsultation has doubled. WhatsApp, email, and chat are now the norm for responding to consumer inquiries. Some organizations Use bots for consumer engagement, "says Datta. Of ICICI Lombard. In some cases, the e-KYC was used to publish the new policy.
come
This digital engagement is further scaled up through artificial intelligence (AI), machine learning (ML), blockchain, big data, and advanced analytics. “The industry is leveraging a wide range of insights and data to move to product simplification using data science to provide more bespoke products that meet individual needs. It is possible to provide a personalized experience. It emerges as a differentiator. Digital enablers drive efficiency, productivity, and cost control, "said Kamlesh Rao, MD, and CEO of Aditya Birla Sun Life Insurance (ABSLI).
Product testing will continue. According to Naveen Tahilyani, MD and CEO of Tata AIA Life Insurance, the focus will be on life and health insurance.
In 2020, we also saw some unique consumer services such as outpatient compensation, home care, cyber liability, and pet insurance. The industry-wide launch by other insurance companies is scheduled for 2021.
Going forward, Dr. Anandroy of Star Health and Allied Insurance will focus more on seamless digital-driven processes for billing and customer service payments, and value-added services such as customer-centricity and telemedicine and wellness. It says it will be adopted more quickly.
Future options
There are several insurance products available at a fairly low cost that customers should consider. People usually find no value in products such as fire insurance, home insurance, and cyber insurance. Even with car insurance, people will buy mandatory third party compensation and will not consider their own damage compensation.
Now that most services are digital, you need cyber insurance. Already provided by ICICI Lombard, HDFC Ergo, and Bajaj Allianz. Home insurance includes the structure and content of your home.
Next, there are byte-sized insurance products such as backpacks, marathons, and travel insurance, which can be purchased from companies such as Toffee Insurance, Digit Insurance, Acko Insurance, Symbol Insurance, and Mobikwik. Many companies also ensure gadgets and appliances at the time of purchase. You can also buy credit or mortgage insurance that your insurance company will continue to pay EMI on your behalf in case of an accident or absence.
Finally, consciousness holds the key to buying insurance products. The amount of compensation you need, the premium payment options you choose, or what your insurance policy covers and does not cover are some important aspects to consider before filling out an insurance proposal form.
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