Page 20 - The Insurance Times January 2025

creasing insurance ecosystem requires a talent pool of pro- transparency in the face of asymmetric information is a
fessionally trained workforce. The domain knowledge is daunting task.
abysmally low; few universities or education institutions
teach complete insurance courses. They just offer a few Technology has brought forth solutions hitherto not visual-
subjects as electives in insurance; as a result, the demand ized. InsurTech provides a way to expand the client bases
for trained professionals is greater than the supply. Univer- with striking speed and enormous trust and to bridge the
sities should come forward to introduce insurance and risk worldwide protection gap in most economies. By creating
management courses for undergraduate and postgraduate an excellent customer experience, technology can be influ-
students on a bigger scale. The insurance industry should ential in minimizing the trust deficit. A recent example of a
partner with universities in this novel initiative of the Indus- total loss claim in motor insurance paid on the spot within
try-Academia Association. five hours of the accident with the help of technology instils
an incredible amount of trust. Similarly, cashless payments
Insurance education and awareness will help curb rampant in health insurance have gone a long way in fostering cus-
misselling that erodes people's trust. Awareness generated tomer trust. Customer awareness, followed by extensive
through proper education can effectively address the prob- education, is the way forward.
lem of trust deficit. Adequate insurance education can build
and restore confidence and trust and help bridge the yawn- Reference:
ing protection gap. 1. The Role of Trust in Narrowing Protection Gaps - Kai-
Uwe Schanz -The Geneva Association
We are in an age where customers are sovereign. Gone are
https://plato.stanford.edu/entries/confucius/ -
the days of muted and choice-strapped customers standing
Confucius -Stanford Encyclopedia of Philosophy
in long queues waiting for their turns to come. Customers
2. The Role of Trust in Narrowing Protection Gaps- © The
are knowledgeable and demanding today. Insurance busi-
Geneva Association, Published by The Geneva Associa-
nesses globally suffer from huge trust deficits, resulting in
tion-International Association for the Study of Insurance
unsurmountable protection gaps. The gap has been widen-
Economics, Zurich.
ing over the years- certainly a significant cause of concern.
To establish trust in a relationship, it is imperative to pro- 3. A Question of Trust: The BBC Reith Lectures 2002 -
vide all customer-related information. Assuring complete Onora O' Neill.

Combining Digital Channels with Traditional Agent-Based Sales

for Better Customer Reach

In the evolving landscape of the insurance industry, blending digital channels with traditional agent-based sales is
emerging as a powerful strategy to enhance customer reach and satisfaction. This hybrid approach leverages the
strengths of both models, creating a seamless and effective customer experience.
Digital channels provide convenience, speed, and accessibility, allowing customers to research, compare, and pur-
chase insurance products online. Technologies like AI-powered chatbots, data analytics, and personalized recommen-
dations enable insurers to engage customers efficiently. These platforms also appeal to tech-savvy consumers who
prefer self-service options and online interactions.

On the other hand, traditional agents bring a human touch, offering personalized advice and building trust, particu-
larly for complex products like life or health insurance. Agents excel in addressing customer concerns, explaining policy
details, and fostering long-term relationships.
By integrating digital tools into the agent-driven model, insurers empower agents with data-driven insights to better
understand customer needs. Agents can use mobile apps, CRM systems, and virtual communication tools to stream-
line processes and enhance their service. This combination not only broadens customer outreach but also ensures a
balanced approach, catering to diverse customer preferences. It fosters trust, convenience, and efficiency, enabling
insurers to achieve greater customer satisfaction and market penetration.

18 January 2025 The Insurance Times