Page 32 - Insurance Times June 2023

To meet this challenge and maximize data in pursuit of better interest for traditional long-term savings products which grew
customer experiences, companies must leverage the digital by 61.2 per cent for the year. Similarly, annuity products
insurance solutions at their disposal. With agile cloud registered a robust 120 per cent growth year-on-year. It has
systems, data analytics capabilities, and more, insurers can become imperative for every working individual to add life
meet the demands of today's consumers with important insurance as a key ingredient of financial planning. In non-life
features such as: insurance also the lessons learnt from the pandemic will lead
Chatbots to a paradigm shift in the way businesses operate. Along
with the growth in technology, there's one special sector of
Mobile applications
the insurance industry that provides a new valuable service.
Omnichannel claims capabilities
AI-generated quotes Understanding and navigating the world of cyber risks will
help insurers prepare for challenges that could arise with
individuals and businesses. Individuals may want insurance
Widening the reach of insurance
to cover their personal losses when they become impacted
products by data breaches. However, companies want to be insured
Increasing consumer awareness, the launch of innovative against other costly factors. If their data is exposed, they'll
products and the emergence of online distribution channels want to cover several of the costs associated with a data
such as aggregators (Policybazaar.com) will widen the reach breach. Providing this coverage can be a cost-effective, low-
of insurance products and help increase penetration in India. risk investment that shows insurers are forward-thinking and
looking out for the best
General Insurance Gross Written Premium (INR Bn 2013-22 FEB) interests of their customers.

Growth momentum

India has undergone a sea-
change over the last two years.
One major change has been
the perception of the category
amongst customers, and the
need to have a health insurance
policy. The pandemic has made
everyone realize the
uncertainties of life and their
unpreparedness in case of any
health-related emergency. The
growth engine/trajectory will
continue as the health
insurance category has gained
There are emerging risks related to environmental, social the attention of the consumers. With a major shift in
and governance (ESG) issues on the insurance industry of consumer perception of the industry, the focus has gradually
moved from sickness insurance to health insurance.
which climate change is a bigger challenge. Apart from
climate change, there are emerging risks associated with The underlying cause of this change has been the rising cost
public health trends such as increase in obesity related of hospitalization that has made people understand the need
disorders and demographic changes such as population of buying health insurance. Consumers have also realized that
urbanization and ageing. buying a comprehensive cover is a better choice since it
extends a holistic healthcare approach with wider coverage
The pandemic amplified the need for life insurance among against diseases, pre-existing conditions or even future
people, leading to the category slowly moving from being a lifestyle conditions. Thus, many consumers have started
"push product" to a "nudge product. On the back of the risk- viewing health insurance as an essential investment that
averse behaviour of our customers, there was considerable brings in a wholesome health cover.

The Insurance Times June 2023 29