Page 38 - India Insurance Report 2023- BIMTECH

26 India Insurance Report - Series II

 Automation: The claims process can be complex and time-consuming, involving several stages, such
as reporting, assessment, decision-making, and settlement. Automation tools can streamline the claims
process, handling routine tasks and reducing manual errors. For example, Robotic Process Automation
(RPA) can manage data entry, schedule follow-ups, and send notifications.

 Chatbots and Virtual Assistants: AI-powered chatbots can guide customers through the claims
process, answering queries and providing updates. They offer 24/7 service and can handle multiple
inquiries simultaneously, thus improving the customer experience. We are seeing increased usage of
NLP to make the conversations more humane and multilingual.

 Drones: Drones or Unmanned Aerial Vehicles (UAVs) can significantly improve the efficiency and
accuracy of claims assessments, particularly within property and agriculture insurance sectors.

 Property Insurance: In the event of a disaster, drones can capture high-resolution images of affected
areas that are difficult to reach. The data collected can then be used to assess the damage and process
claims quickly. For example, after a flood or cyclone, drones can provide quick and comprehensive
damage assessments, speeding up claim settlements.

 Agriculture Insurance: Drones can monitor crop health, enabling insurers to assess the risk accurately
and price their policies accordingly. In the event of a crop failure, drones can also help in quickly
assessing the extent of the loss.

While technology offers promising solutions, it’s crucial for insurers to navigate the challenges,
including data privacy, cybersecurity, and regulatory compliance. The impacts of technology on our
lives and our insurable risks from developments such as self-driving cars, robotic factories, embedded
sensors, and Generative AI are arriving at a fast and furious pace. And insurers have to determine the
appropriate pricing and risk assessment tools.

Amidst these technological advancements, the human touch remains indispensable. We need to
strike a balance between automation and personalisation, as insurance is a business of trust. To ensure a
seamless customer experience, the insurance players also need to continually keep investing in upskilling
their workforce to manage and use these new technologies effectively. Technology is not a silver bullet,
and other strategies, such as product simplification and customer engagement, must complement it to
effectively drive insurance adoption.

3. Regulatory Reforms & Government Initiatives

The evolution of general insurance in India is being shaped by various factors. One of the key
catalysts has been the regulatory changes brought about by the Insurance Regulatory and Development
Authority of India (IRDAI) and the slew of reforms announced as part of its vision ‘Insurance for All
by 2047’. IRDAI has adopted a proactive approach in response to market realities, creating a conducive
environment for growth.

One such reform has been the introduction of ‘sandbox regulations,’ a controlled testing environment
for innovative products. This move has enabled insurance companies to test new products, distribution
channels, and processes, leading to increased innovation in product offerings.