Page 35 - Insurance Times March 2022

GONE ARE THE DAYS

WHERE

CUSTOMERS' WAIT

WAS UNENDING TO

HEAR BACK FROM

MOTOR INSURERS

T he role of insurers is changing from a risk transfer market is underpenetrated and underserved. While lower

company to a risk prevention and management
in comparison to global average it is worth noting that
one. Insurance was always a push product. It was
India's insurance penetration in FY21 stood at a higher 4.2
not even a secondary, but a tertiary product. With
digitisation, insurance is becoming a primary product and percent as compared to 3.76 percent a year ago. A report
by Mordor Intelligence projects that the insurance market
many of the start-ups have realised that insurance creates a in India will grow at a compound annual growth rate (CAGR)
great pull for their business model. For insurance companies, of 7 percent till 2025. The overall market size is currently at
insurtechs is an extended way of creating a conceptual around $250 billion, of which insurtech players form only 10
promotion of their product. Customer engagement has been percent. Out of the expected growth parameters insurtech
one of the pain points for insurers, historically. has to grab the lion's share of the new business.

This is where technology is playing a critical role. Insurance Customer service and the customer experience are becoming
in India is seen as a white elephant by customers largely due an important competitive differentiator in the insurance
to experiences such as lack of transparency in plans, industry. At least 30 percent of first-time insurance buyers
difficulties in claim filings and minimal education within the over the next few years will be the younger population in
customer base on how to make these choices. When it the age bracket of 16 to 21 years. They are digital natives
comes to India's insurance industry, one is aware that the and their buying experience and expectations around their
experience will be completely digital. Insurtech aggregators
About the author and brokers will grow five-fold over the next few years.
Back-end service providers and pure tech insurance service
Jagendra Kumar provider companies are likely to see year-on-year growth.
Ex. CEO,
Pearl Insurance Brokers Motor insurance is set to rise this fiscal as post pandemic
Jaipur economic recovery gathers momentum. Motor insurance

The Insurance Times, March 2022 35