Page 36 - Insurance Times June 2021

IRDAI; the regulator should allow differential pricing for
products sold through insurance self-network platforms.

The latest regulations issued by IRDAI on e-commerce has
removed tedious processes such as physical signatures, by
bringing in digital signatures and other authentication
methods like one-time passwords. IRDAI should also launch
"Insuretech Sandbox" to facilitate pilot trails on Insurance
technology. This Insurtech Sandbox should allow Indian
insurers to experiment with new technology without the need
to achieve full compliance with the IRDAI's usual regulatory
requirements. Under the Sandbox initiative, pilot trials of
Insurtech applications should be conducted in a controlled
Conclusion environment with sufficient safeguards for policyholders.

With the rapid use of smartphones, the majority of Indian
population is now tech-savvy. The modern Indian is a digital One must understand and be aware of insured's risk for
native and has variant lifestyle needs. By 2020, India will be providing desired coverage. Insurance is and will continue
the youngest country in the world with an average age of to be a push-product. No one wakes up excited that they
29, so it is vital that insurers start considering the unique are going to buy insurance today, but insurers should change
needs of this demographic. Modern Indian youth are not that perception. If customer has a fitness goal, so he should
get a policy with their gym membership. If customer is
interested in those policies, which do not speak to their
commuting between Delhi and Noida for his new job, insurer
lifestyle. The traditional way of providing insurance cover
may no longer yield optimum results. The traditional offline should have policy to cover the commute. The future of
model is broken, difficult, and expensive. Digital insurance distribution lies in creating that context.
partnerships, which allow the insured to see and protect
their risks, will lead. It is very much clear that the problem In short, we can say that future of insurance in India is very
bright and big thanks go to the Government of India for
of low insurance penetration can only be solved through the
their digital initiatives like "Make in India" and "Start-up
use of insurance technology. For eradicating the problem
India". The credit also goes to the regulator (IRDAI), who
of low insurance penetration, It is very important that has brought new e-commerce guidelines, POS concept and
customers are protected and treated fairly and provided the concept of Web Agregators. The above-mentioned initiatives
right and quality products according to their needs.
have played a very important role in increasing insurance
penetration in India.
Technology-led disruptive ideas are essential in changing the
face of insurance business and can make a huge impact on Bibliography
Insurers. "According to a Boston Consulting Group (BCG)-
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Google report, by 2020 every three in four policy purchases
Y https://www.pwc.in/assets/pdfs/ras/financial-services/
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are creating significant new opportunities for insurance 2018/06/emphasis-blockchain-use-in-insurance-from-
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36 The Insurance Times, June 2021