Page 24 - Life Insurance Today FEBRUARY 2016

VIII. Importance of digitalization in
bancassurance business in India
Digitalization involves paperless work and is necessary for
networked society. In India, rising level of internet, mobile
phones and smart phones are bringing tremendous growth
for digitalization. Bancassurance, online sales channel and
other alternative distribution channels are becoming
increasingly dominant in the life insurance industry in India. November-December 2015, it is estimated that insurance
By 2020, 75% of insurance sales will be online. There is a
saving of 15% to 20% in total costs of life insurance due to
digitization. The savings so generated if passed on to the
customers can not only result in customer delight but also
build customer relationships in the long run.
Digitalization allows the up-to-date customer information
available with banks and this can help both banks and
insurance companies design the products suiting the
changing requirements of the customers.
Insurance companies can seek the advantages derived by
the digital banking operations such as convenience, speed
and safety at which services are delivered in distributing
the insurance products and services too. Besides, insurance
companies and brokers are seeing a big business by offering
customized insurance packages for e-commerce firms to
cover risks such as data theft, online frauds and hacking of
websites.
There is a need for both the banks and insurance companies
to create a single customer view which gives a
comprehensive picture of customer information, i.e., his
needs, preferences, interactions in order to have better
"You only live once, but if you do it right, once is enough."
24 February 2016
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knowledge and understanding of customers. While banks
can track customer demographics and his transactions in
detail, insurers can collect timely data on mortality and
morbidity, weather and natural disasters like earthquakes,
tsunami and floods in order to facilitate better claim
management.
Recently, due to torrential rains occurred in Chennai during
companies are likely to take a hit for more than Rs.2,000
crore claims from automobiles, property and small &
medium enterprises (SME).
IX. Conclusion
In the context of economy being digitalized, getting right
and timely information provides plenty of opportunities to
the firms. Thus, digitalization would bring several
advantages to all the three parties of the bancassurance
to make it a win-win situation.
X. References
1. Shri SNSSB Srinivasa, Promoting insurance through
information technology, The Journal of insurance
institute of India, Vol. no. XXX, July - December 2004,
pp 94-105.
2. Mr.Anurag Kumar, Cross Selling (With Special Reference
to State Bank of India), International Journal Of Social
Sciences & Interdisciplinary Research, Vol.1 No. 6, June
2012, pp 116-123.
3. Gunter Schwarz, Henrik Naujoks, Camille Goossens,
David Whelan, Andrew Schwedel, Harshveer Singh,
Customer loyalty and the Digical® transformation in
P&C and life insurance: Global edition 2014, June 18,
2014.
4. Dr Shubhada Mohan Kulkarni, Life Insurance
Distribution at Crossroads, IOSR Journal of Business
and Management, PP 16-22.
5. A Report of Cognizant Technology Solutions Ltd. on
Insurance Insights.
6. Reports of the IRDA and RBI
7. Watson - India market life insurance update September
2014.
8. Trends in Insurance Channels 2013: Key emerging
business and technology trends across insurance
channels, Capgemini.
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