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Strengthening the digital distribution channels has been an area of focus for life insurers, especially since
the COVID-19 pandemic started. Distributing insurance digitally improves access, while dynamic, data-
based pricing brings affordability. It is observed that public awareness of health risks and insurance products
has increased as a result of the pandemic, and insurance purchases are shifting rapidly to online modes. 9

Predicting future events and measuring the risk or value of these events is yet another important
aspect of the insurance business, and companies are using big data, artificial intelligence, and machine-
based learning to determine risk and claim with higher predictive accuracy. These technologies also
provide a better, data-based understanding of customer behaviour and enable insurance companies to
offer products and services that are personalised to the needs of different customers and customer segments.
COVID-19 has accelerated digital customer service. Use of digital conversational interfaces has jumped
by 50% at insurers that adopted multichannel approaches. 10

Digital insurance products will serve an increasing number of smartphone-savvy users and underserved
communities, even in the smallest and remotest markets, thus overcoming geographic and literacy barriers.
New users will be easily onboarded and verified using their digital identities, the India Stack, and the
JAM (Jan Dhan, Aadhar, Mobile) trinity.
A recent EY report revealed that India has a fintech adoption rate of 87 per cent – the highest among
all countries and substantially higher than the global average of 64 per cent. This augurs well for the
continued growth of insurance adoption in the years and decades ahead. There is also strong acceptance
of digital platforms for buying insurance in India. According to a recent study by the Swiss Re Institute,
more than 70% of the survey respondents expressed strong intent to purchase all six products we tested,
especially critical illness (CI) and hospital cash.

The uncertain times we live in call for certainty in action to build a resilient world in which no one
is left behind. The ongoing transformation of the insurance sector will help us build a strong nation and
resilient communities in the years ahead.

9 insurance: Due to coronavirus pandemic, perception of importance of insurance now higher than ever:
Survey - The Economic Times (indiatimes.com)
10 Covid-19 Heroes: Why Max Life Insurance sees Covid-19 as an opportunity, ET CIO (indiatimes.com)

SOURCES

https://www.swissre.com/institute/research/topics-and-risk-dialogues/economy-and-insurance-outlook/
indias-insurance-market-poised-for-rapid-growth.html
https://www.swissre.com/dam/jcr:444d06a0-2f47-41e9-a1e0-59a112c88681/2022-11-expertise-
publication-india-a-growth-engine.pdf
https://www.swissre.com/institute/research/topics-and-risk-dialogues/health-and-longevity/expertise-
publication-global-COVID-19-consumer-survey-2022.html
https://www.swissre.com/risk-knowledge/risk-perspectives-blog/climate-inactions-india.html
https://economictimes.indiatimes.com/small-biz/sme-sector/insurance-penetration-gains-momentum-in-
india/articleshow/94530372.cms?from=mdr
https://www.ibef.org/industry/insurance-sector-india