Page 25 - Life Insurance Today January-June 2020

Widening the role of insurers: more and more aspects of our daily lives, risk pooling
through insurance is likely to remain as the best response
Digitalization is widening the role of insurers from one
of the industry to the financial consequences of risk.
primarily concerned with loss indemnification to a broader
advisory service for insured's on how to prevent, mitigate
Digital channels are increasingly becoming critical
and manage risks. That is to say, new technologies allow
throughout the lifecycle of customers or policies. It is
insurance to evolve from pure risk protection towards risk
imperative for insurers to leverage the huge amount of data
prediction and prevention.
generated as these new customers navigate the internet
Underwriting, pricing, claims handling-all these processes and leave footprints. Insurers have already started
could become more efficient thanks to digital technologies. collecting data from customers' browsing patterns, the
But digital technologies also give rise to new challenges. websites they visit, and from the partners where these
For example, technology driven personalized pricing could customers typically research, and ultimately, make their
also mean that for some individuals who are exposed to a buying decisions.
higher risk within any given risk pool, adequate insurance
cover might come at too high a price. This rapid increase in penetration of smart phones and
increased access to the internet is fast making India a
Societies need to reflect on this and on the risk that ethics 'digital country' with the "Mobile first" mode of internet
and data protection may lag behind technological progress. access. All these touch-points and transactions are leaving
In the face of the ever increasing digitalization of the digital footprints that can be leveraged to mine deep
economy, and in spite of pervasive trends to personalize insights.

Life Insurance Today January - June 2020 25