Page 17 - India Insurance Report 2023- BIMTECH

India Insurance Report - Series II 5

used to address “accessibility, affordability and customisation”. The core Moats of InsurTech are (a)
Customer connect, (b) Product customization (c) Management of business, (d) Risk Management (e)
linkages with a larger audience and (f) profitability build-up.

3. Resurrection of Organisational Design of Insurance Companies

The current multi-layered, hierarchal and shareholders’ focused organisation design is heavily tilted
towards the ‘yield on Investment’ for profitability and sustainability. Apparently, it has outlived its
utility. The current ethos will override the past. The perspectives emanating from the intersection of the
past and present will determine the dynamics of new organisation design. Whereas it will be audacious
to suggest what the new design will look like, the priorities of pools of profitability will undergo a
hundred-and-eighty-degree turnaround. The new design is likely to be woven around converting
weaknesses into strengths as the forces of the environment are weakening the current strengths. The
new priority order of pools of profitability will be as under:

a) Customer Acquisition

b) Expenses of Management

c) Yield Management

d) Risk Management

‘Profit with Purpose’ will derive the new organisation design.

4. Transformation of Regulatory Craft

The new environmental setting warrants a new approach: a mix of ‘Reactive, Co-active and Pro-
active.’ Further, the current tools of superintending the markets and oversight over the conduct of
participants will become obsolete. New weaponry will have to be evolved in coordination with the
market participants. The social media voices will find their echo in the legislative corridors and inspire
the fixing of responsibility and accountability on the regulators for failure to maintain the rhythm of the
markets and protect the interests of investors. The next gen regulators will build bridges of real-time
flow of information about the developments and use of technology, transactions and conduct of
participants. Ongoing analysis through Algo, AI, etc., of ‘hot data’ will suggest time and tool/s of
intervention to prevent major misconduct or large-scale misdemeanours. The regulatory interventions
will be automated and responsibility shared between the regulatory authority and self-regulatory
organisations and between the principal and sub-ordinate regulators (like exchanges in the capital market).
The hammer rushing after the event will be replaced by modern armoury of constant monitoring and
‘in time’ intervention coupled with continuous reengineering of regulations and directions and regulatory
cognizance. Alacrity will be the new ‘Regulatory Craft’!

Note: This article has drawn some inspiration and a few narratives from the long-form lecture delivered by
the author at National Insurance Academy (NIA) Pune.