Page 21 - The Insurance Times May 2021

A digital revolution is quietly happening in India. The Indian insurance market, which currently accounts for

around 2% of the world's total insurance premiums, is having
The share of premium received through an
online channel in India is still very small, but the
a huge business opportunity due to low penetration and
same is rising. It is proved through some of the
penetration level may increase.
surveys that consumers are using more and more internet through effective use of different technologies, the
for research and that the internet has become a trusted
source of advice for insurance. Digital technology has made Due to some of the factors like young population, healthy
some of the insurance companies as market leaders. savings and investment rates etc., the growth optimism is
strong for a country like India. Around 33 general insurance
Digitalisation is getting a lot of momentum in the Indian companies are operating in India, and all are running in the
industry and the insurance sector is emerging out to be one race of digital disruption. Insurance companies keep working
of the biggest beneficiaries - in regard to enhancing its on market analysis for technologies and digitization for
footprint, selling of new policies, settlement of claims and better communication with customers. The use of big data,
creating digital intermediaries - as technology is playing a artificial intelligence, and cloud computing is changing the
crucial role in insurance outreach. Intermediaries and agents nature of work and the structure of the economy. This shift
are an integral part of the business to help reach insurance started with companies such as Apple, Amazon, Netflix,
penetrate into uninsured areas but in majority of the cases Facebook, Google, Salesforce, and Uber, which are creating
insuretech is being used as a mean of distribution for existing online structures that enable a wide range of digital
products to new customers, in addition, policyholders are activities. They have opened the doors to radical changes
now often provided with an online platform to get their in how we work, socialize, create value in the economy, and
policy easily. Chatbots are also getting popular among compete for profits. Use of technology is changing digital
policyholders. It allows the customers to open an online behaviors and customer expectations as customer want
conversation window to raise queries. Insuretech is having quick policy, quick claims, quick renewals and instant
a direct impact on increasing insurance penetration but services. Today's generation is tech-savvy; they want
there is lot more potential yet to be realized particularly in everything on mobile app. Insurance companies are
the area of internet of things, blockchain technology etc. redefining their structure according to customer
expectation. Recently, insurance companies are bombarded
Insurance penetration for any year is defined as the ratio of with a lot of technology in the market like Artificial
premium underwritten in a particular year to the GDP of Intelligence, Blockchain, Machine Learning, Predictive
that year. We have witnessed that India has become the Modeling, IOT, Telematics, and Mobile Application etc.
world's fastest-growing major economy, but insurance which all are useful for some or the other way in an
penetration stands continually low in Indian markets in insurance company. Companies started launching pilot
comparison to other developed markets. survey for use of technology to check the efficiency of the
technology before adopting it.

Insurance technology is undoubtedly
playing an important role between
customer and agents' interactions.
Most of the channels for delivering
insurance products are getting
digitized, thereby increasing
efficiency and reducing turnaround
time.
Most of the insurers are now giving
advisory services related to risks and
claims through their digital platforms.
Insurers are increasingly using
technology for delivering sales and
services to their consumers in a
simplified and seamless manner.

The Insurance Times, May 2021 21