Page 34 - Insurance Times December 2022

be updated with real-time status of his claim with full If the insurer throws a borderline claim to the legal team ,
transparency. it only ends up paying twice the amount after a protracted
legal battle. An average consumer court case takes three
The future is blowing in the wind, first make insurance to five years for fruition. What is frustration for the common
purchase convenient and second pay claims quickly or perish. man is fodder for the legal fraternity.
In a recent survey it was found that 60% customers change
service providers due to ease of purchase. Data collection There has to be a change in mindset and this is possible only
is done in a jiffy through apps/data mining and policies issued through vigorous training programmes which is passe. Back
under 5 minutes. Of course complex risks cannot be written in the 70's and 80's, there were excellent minds who never
in a short time like projects/large industries but surely nothing hesitated to share their rich vein of knowledge. Those of us
stops us in personal lines of insurance (motor/travel/ in the PSU's those days will know what I am talking about.
domestic package/health/all risks for valuables). Training is not a cost but an investment in the minds of the
current crop of millennials who are spread in the insurance
Insurance Laws need to change with changing times. world. They will take Indian insurance industry to the next
Insurance is a mutual concept but where is the mutuality in level as underwriters/brokers/claims managers/customer
India? Does an individual or a garage or a service provider care managers.
care about the damage to the central pool while inflating
estimates for claims? Everyone is out to make his big bucks. Technology is a tool that should be used to the fullest,
You have a situation where there are discounts and cash- remember technology should not rule us! Intermediaries will
backs and underwriting caution is thrown to the winds. Little continue to be a part of the industry eco-system as it forms
wonder therefore, that only a handful of insurers make an important part of distribution which is the biggest
profits , and I mean true underwriting profits. challenge of an enterprising carrier. Drones are now being
used for survey work in case of motor claims /life insurance
Further insurers mindset of "how to avoid claims " rather claims and AOG claims. AI (artificial intelligence) is used for
than " how to pay claims" enhance the present industry detecting leakages at homes and factories. AI is also used
cocktail. After all, why should a person take out insurance? in security systems to prevent burglary. Data is shared
Only because he feels that in case of something unfortunate between underwriters to assess the physical and moral
, he will be back on his feet at the earliest. In developed hazards of a prospect.
insurance markets, delays are viewed seriously since every
In future a huge change will be seen due to IOT (Internet of
delay in settlement of claim earns interest each day in
things). Through sensors, we will know the cause of damage
addition to an apologetic carrier and a red tick in the claims
or loss in every asset we insure, from a refrigerator to a cell-
team's records. In India , few take pride in settling claims.
phone, from a car to a container in high seas. Policies have
There is just no willingness to settle claims.
already been digitised and stored in your free E-locker this
saves paper and the environment. Did you know that on an
average we cut 40 trees to produce a single A4 paper. How
ruthless are we? Don't we have a responsibility towards the
environment; to leave the world a better place for our
children/grandchildren?

Like it or not, the future is scary as the very existence of
insurers is threatened due to the "big five" (Apple/Microsoft/
Google/Facebook/Amazon). Do not be surprised if these
brands start selling insurance tomorrow. The world's largest
insurer Allianz is in the 17th place as a brand value compared
to the top 5.

Friends the future is already here. Either we change our
thinking or risk extinction !

30 December 2022 The Insurance Times