Page 40 - India Insurance Report 2023- BIMTECH

28 India Insurance Report - Series II

Bima Vistaar is envisioned as a social safety net product targeting the untapped geographies of the
country and will be available on “Bima Sugam”. The objective will be to develop an affordable, accessible
and comprehensive cover – Bima Vistaar — for the rural population in the event of natural disasters,
such as floods and earthquakes, to name a few.

The various reforms are game changers and show the confidence and commitment of the regulator
in making its vision of ‘insurance for all’ a reality.

4. Customer Centricity Governs The Rules of the Game.

No industry can expect to survive, much less thrive, if not focused on customer centricity as its
bedrock. The GI industry is focused on newer customer segments, personalised and customised products,
newer distribution models and collaborations or strategic alliances to drive better customer experience
and reach a larger demographic base.

Customers today aren’t simply looking for financial protection. They want personalised solutions
presented in the context of their day-to-day lives, be it while buying a car, planning for retirement or
starting a business. Customers expect insurers to go beyond their risk-transfer obligations and offer end-
to-end solutions, covering risk prediction, prevention and intervention, and underpin those services
with powerful digital and data capabilities.

Traditional insurance products are often seen as complex and intimidating by customers. Emerging
market segments are bringing fresh energy to the industry. The rise of a young, financially aware, and
digitally active population has necessitated the creation of novel insurance solutions. In response to this,
the concept of ‘bite-sized’ insurance has gained momentum. These are simplified, low-cost insurance
products that cover specific risks and offer instant gratification through quick claims processing. This
new approach towards insurance aims to provide ease of understanding, affordability, and relevance –
thus increasing the appeal and penetration of insurance among younger demographics. These innovative
products provide an opportunity to reframe the narrative around insurance, highlighting its relevance in
everyday life and making it more relatable and accessible to the masses.

Micro-insurance is revolutionising the industry by providing coverage for everyday risks, such as
gadget protection, commute insurance, or even fitness insurance. The industry is excited about this new
trend and is continuously developing innovative micro-insurance products that cater to the dynamic
needs of today’s consumers. A lot of this is already a reality as one sees alliances with partners like
Amazon or Uber or Cleartrip or gymnasiums as allied services.

Insurance is now not just all-encompassing umbrellas but also precision parachutes, dropping in
exactly when and where you need them.

Moreover, we are witnessing a shift towards ‘Phygital’ - a combination of digital and physical. While the
online platforms allow customers to explore and buy policies at their convenience, offline touchpoints help in
building trust and personalising the experience. To connect with customers in a way that is relevant to them,
insurers need to rethink their partnerships and collaborations to go beyond traditional industry and competitive
boundaries and engage in ecosystems in which insurance is only a part of the customer value chain.