Page 44 - Insurance Times November 2023

channels have become essential for insurers to reach on risk associated with lifestyle choices. Many life
out to customers. Online platforms have made it insurers now have a 'wellness score' on which they offer
convenient for customers to compare and purchase incentives, rewards and premium discounts to
insurance products, leading to a shift from traditional encourage customers to adopt a healthier lifestyle.
agent-based sales. The article explores how
7. Insurtech Revolution: Insurtech startups have
digitalization has improved customer experiences, emerged as disruptors in the insurance industry. From
reduced costs, and expanded market reach for insurers.
AI-powered chatbots for customer support to mobile
3. Changing Consumer Preferences: Millennials and Gen apps for policy management, insurtech companies are
Z are a key demographic in India, and their preferences redefining the way insurance services are delivered. This
have prompted insurers to adapt their offerings. These section examines the role of insurtech in increasing
younger generations seek flexible, transparent, and efficiency, simplifying processes, and fostering greater
easily accessible insurance products. The article delves inclusivity in the insurance sector.
into how insurance companies are tailoring their policies 8. Shift of Demographic and Economic Trends: Another
to cater to the changing demands of these tech-savvy crucial factor that will shape the life insurance industry
consumers.
in the coming years is a shift in demographic and
4. Evolving Regulatory Landscape: The regulatory economic trends. In India, life expectancy has
environment plays a crucial role in shaping the insurance consistently increased over time. The aging population
sector. The Insurance Regulatory and Development is retiring and becoming reliant on government and
Authority of India (IRDAI) has introduced several employer-sponsored pension plans. This is a test,
reforms to enhance customer protection, improve particularly when it is the sole wellspring of monetary
product offerings, and encourage innovation in the security for the resigned populace. According to a World
industry. This section discusses the impact of recent Economic Forum report, India is one of a select few
regulatory changes on the life insurance sector. nations with a large market for retirement savings but
5. Rise of New Products and Customization: In response a significant savings gap. Additionally, the majority of
to changing customer needs, insurers are introducing retirees will outlive their savings, according to the
report.
innovative and customized products. Unit-linked
insurance plans (ULIPs), term insurance with additional 9. Time and money investments: Life insurance
riders, and pension plans are gaining popularity. The life companies are already putting in time and money to
insurance sector has come a long way in terms of customize products that allow customers to control
product offerings, services and operations. Globally the their insurance journeys while maintaining their financial
common goal across insurers has remained consistent - security at all times. One-size-fits-all protection items
to provide financial protection and security to are being superseded by far reaching and refined
customers. Brands are now enabling this further by contributions that keep the client's interest and
encouraging consumers to become partners in this prosperity on a fundamental level. For example, extra
journey of financial protection for themselves as well security organizations are integrating liquidity and
as their loved ones. venture as a significant piece of their items by offering
6. Technology impact to Products & Services: the adaptability to pull out cash sooner or add riders to
Technological advancement in the life insurance industry top-up their particular insurance covers or change
has helped enhance products and services provided to charge installment recurrence, as required. In addition,
insurers must consider developing protection and
customers. For example, connecting wellness services
to digital channels such as apps and wearable sensors income generation avenues that alternate protection
that provide data tracking have benefitted customers and retirement asset accumulation phases.
alike to monitor their health journey. For the customer, "The IPO of Life Insurance Corporation (LIC) of India was
this has enabled healthier lifestyle choices and savings the largest IPO ever in India and the sixth biggest IPO
in terms of reduced premiums. For insurers, this has globally of 2022.As of November 2022, listing of LIC
helped in infusing greater customer engagement in this accounted for more than a third of resources mobilized
category along with offering premium discounts based in the primary equity market until November 2022.

40 November 2023 The Insurance Times