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4. Encouraging Positive Behaviors financial inclusion. Insurers can strategically leverage these
The industry's central purpose is evolving from loss budgetary allocations to enhance their product offerings. By
reimbursement to risk solutions. Insurers have an aligning with government initiatives, insurers can tailor
opportunity to redefine their role by encouraging health insurance products to specific demographics.
behaviors that reduce risks. Insurers can incentivize Furthermore, the budget's emphasis on technology adoption
policyholders who exhibit good behaviors, fostering a empowers insurers to streamline processes, elevate
mutually beneficial relationship. Policyholder can be low customer experiences, and provide personalized services.
income but good behavior or be high income and bad Leveraging AI and ML-based algorithms, insurers can
behavior. This transformation aligns with past efforts, efficiently process claims and expedite settlements. A unified
such as advocating for seat belts in cars and safety platform aggregating rewards and benefits enhances
standards in house construction. Rewarding customers customer accessibility. Integrating this platform with diverse
based on aforesaid behaviors can be an incredible communication channels ensures timely updates on exclusive
powerful chassis for behavioral changes such as reward offers, new rewards, and upcoming benefits, all customized
to individual profiles and preferences.
for safe driving beyond NCB, installation of theft alerts,
earn the discount on your next premium or hitting the
In the healthcare sector, Insurance Eligibility Verification
gym can give cashback or gym payment directly from
(IEV) benefits from an advanced automation platform that
insurer or achieving goals will provide more rewards -
seamlessly exchanges data with electronic health record
such as travel vouchers.
(EHR) systems, enabling real-time access to patient
information for efficient claim processing.
5. The Power of Behavioral Insights
Insurers now have access to advanced technologies such In summary, insurance companies should prioritize
as Internet of things (IOT) and machine learning/ innovation, foster collaboration, and embrace sustainability
artificial intelligence that allow them to analyze while aligning their strategies with the government's
customer behavior comprehensively. By studying healthcare initiatives.
individual habits, insurers can better assess morbidity
and mortality rates. By identifying, preventing, and References:
mitigating risks, insurers can offer risk-reduction 1. https://www.bain.com/insights/customer-behavior-and-
services, hyper-personalized products, higher quality loyalty-in-insurance-global-edition-2023/
leads for intermediaries. Moreover, understanding 2. https://bfsi.economictimes.indiatimes.com/blog/en-
driving patterns and financial management practices hancing-loyalty-through-customer-centricity-in-indian-
enables more accurate risk pricing. life-insurance/105663807
6. Real-World Success: A Case from Southeast About the Author:
Asia Sanchit Mittal, an experienced Insurance IT presales
In Southeast Asia, a forward-thinking life insurer consultant, has a 15-year track record across the US,
launched services specifically for young families. These Europe, and the Asia Pacific region. His expertise spans
services include online health and parenting forums, technology consulting, market strategy, business analy-
family event trackers, and expert content. By sis, and defining digital transformation journeys for cli-
partnering with prevention-focused organizations, ents. Sanchit excels in client presentations (CXO), Insur-
diagnostic services, and food scoring platforms, the ance value components recommendations, competitor
insurer engaged over 300,000 customers in the first analysis, and insurance domain consulting.
year. Remarkably, one-fifth of these active users His technology strengths lie in Digital Transformation
subsequently met with insurance brokers. Programs and Blockchain Solutions. Additionally, Sanchit
holds a masters degree in insurance and operations
Conclusion: and is a fellow (FLMI) from the Life Office Management
The India Union Budget 2024 underscores strategic Association (LOMA) USA and Associate member of the
investments in healthcare infrastructure, digitalization, and Insurance Institute of India (III).
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