Page 22 - Life Insurance Today January-June 2020

COVID-19 has made us uncomfortable and anxious. It's also innovation is no longer regarded as an exercise for
fair to say that it has changed us and our habits. producing a complicated and intricate product, but an
Throughout human history, every challenge we've faced has effort to simplify and connect to the customer in a hyper
made us more resilient. This pandemic is yet another personalized manner like never before. Instead of all risk
example of "life-changing." So, it's especially crucial that products, people are demanding a simple one risk cover
we understand how the insurance industry can adapt to product which is easy to understand and therefore allows
the changing market needs. When companies or industries customers to choose discrete individualized need based
fall by the wayside because of their stubbornness to adapt covers. The language of the policies needs to be simplified
or realise that the world is adapting and leaving them to keep pace with the expected customer centricity.
behind. Kodak is one example. Other prime exhibits include:
Pan Am, Nokia, BlackBerry, Blockbuster Video and Penetration of insurance being low is not a new fact. The
MySpace. GDP is growing at a fast pace and the rate of penetration
has to increase at a faster pace to reach the desired levels.
The last example is probably one of the more recent Several distribution channel level innovations have been
examples of how tech so rapidly transformed that a pioneer introduced by the regulator to help the industry reach out
tech company got left by the wayside. The pandemic has to a larger population. However, proliferation of
transformed consumers' view on insurance products and distribution is not matched with the product simplification
the way they purchase insurance. It is not surprising to see necessary to make it easy to sell and service. The
consumers' interest in insurance has increased since the government is actively driving digitisation through India
COVID-19 outbreak, especially when insurance companies Stack, direct benefit transfers and other initiatives under
have proactively contacted their customers. the Digital India umbrella.

Whatever it is called - lockdown, "Circuit Breaker" or social Given the unprecedented increase of smart phone
distancing - it has altered our attitudes towards daily life proportion and ease of internet access through the
via Smartphone, tablet or laptop whether forced or by competition of network providers, insurance companies will
choice. Whether we're buying, selling, ordering, delivering need to strategically adopt the technological infrastructure
or working, it's taking place online. To reinforce this, required to launch products that meet customer needs. The
insurers have found that consumers express a strong desire customer access across the vast geography of India so far
to buy new policies and submit claims through digital has come at a great cost and involved investment of large
channels. Drawing on the survey results, the unprecedented amounts of capital.
environment has now highlighted the importance and
opportunities for insurers to elevate their digitalisation That is going to change dramatically now. Leveraging low
plans. cost digital distribution channels for sales and service could
play a significant role in helping insurance companies
As digital technologies evolve, companies are finding new deepen market penetration. Implementation and use of
ways to speed up processes, reduce costs and strengthen digital technologies have ushered in a new breed of
their brand recognition in the market. Firms are continuing customers who are tech-savvy, connected and informed
to boost investments in artificial intelligence, machine and want insurance companies to deliver exactly they
learning and big data and expand use of telematics, mobile genuinely value rather more of the same that is being
phones and table computers. served today.

New age customers: In the experimental stage:
The new-age customer is demanding simpler terms, Simplification of processes will also lead to some degree of
transparent underwriting, easily comprehensible benefit uniformity in the expectations of customers in their
structures and minimal human interaction. Product interactions with multiple insurers. India is seeing fast-

In the middle of a difficulty lies opportunity.

22 January - June 2020 Life Insurance Today