Page 35 - Insurance Times June 2021

ease in buying insurance, Now Customer can purchase specific event. For example, a customer might be interested
insurance policy instantly through digital mode. in personal accident coverage while taking a lengthy ride
share. Insurers could also look at finding ways to bundle and
Insurance technology is trying to replace traditional agent's create customized packages or product offerings for the
job wherein his main job was to explain policy exclusion and appropriate customer segments. Many insurers across the
other important by using a mix of technology and in-house globe are bundling group benefits with accident and health
experts. coverages. Product packaging also holds a lot of potential
for the SME insurance market, given its diverse segments.
Product the customer will be willing to buy based on the
past digital interactions of the customer. In addition, with To increase the low insurance penetration in India, Insurers
big data capabilities, based on customer behavior, the should also look at developing new products for new-age
website can be customized in real time, leading to enhanced risks like the liability risks associated with using digital services
customer experience. across the sharing economy and liability/physical damage
risks associated with the use of drones or smart devices.
Customer Segmentation: Advanced analytics techniques
can greatly help in arresting customer churn. Predictive Insurers should also explore Aadhaar-based biometric
modelling techniques can help predict customers who are authentication for faster customer onboarding and cashless
likely to surrender their policies in near future. With such payment processing gave the rise of mobile payment modes
insights, the marketing team can prioritize their (Paytm, UPII, etc.). They can also look to integrate with
interactions. digital data sources/aggregators such as third-party digital
lockers used with government or medical records for
Employee Productivity: Big data infrastructure can automated data entry. Insurers should also look at
significantly boost employee productivity by providing them collaborating with established digital players in the rural
the right data at the right time fore.g., if an agent can segment and leverage their established digital platforms for
access all previous interactions between the prospect and insurance distribution. For example, insurers could consider
the firm, s/he will be better equipped to convert the integrating with digital TVs, mobile apps and bank ATM
prospect. technologies and leverage those platforms for their selling
and operations.
Fraud Detection: Big data capabilities has enabled insurers
to store huge data volumes obtained through its own Indian insurers must increase their focus on restructuring
sources and through third parties. This data is getting used talent pools and upskilling their human resources. Skills are
to detect various fraud indicators, fraudulent customers, clearly a fundamental factor in creating new digital services.
agents, employees, hospitals, doctors, drug stores, etc. Insurers must therefore identify the right skills required and
should look to leverage digital tools such as social media sites
Customer Service: Customer service can be greatly to attract today's younger workforce.
enhanced by using a combination of big data and advanced
analytics capabilities. Techniques such as text analytics on
unstructured customer email data can identify common pain
point themes so that they can be addressed proactively.

Way Forward: The rise of digital technologies in insurance
has forced insurers to look at remodeling their current
products. The traditional 'one product for all' approach will
not work well in the future.

Insurers will have to offer low-priced products for specific
and need-based coverages like for example (usage-based
insurance) a pay-per-mile motor insurance product with
price determined on miles that one drives or an event-based
insurance. These products are designed to cover only a

The Insurance Times, June 2021 35