ICICI Lombard, in collaboration with the National Association of Software and Service Companies (NASSCOM), has launched a research report titled “Digitalising Insurance: India End-Consumer Perspective” on the sidelines of Future Forge 2023. The report highlights the technology integration in the insurance ecosystem–from the creation of tailored insurance products to the ways customers discover, purchase and manage their policies – and the trends and shifts that are shaping the future of insurance in India.
According to the report, six out of seven unicorns in India’s insurtech domain are dedicated to the B2C sector, addressing the critical issue of penetration. Further, Indian insurtech startups have secured a collective funding of $2.6 billion since 2018, with approximately 90 per cent of these investments fuelling end-to-end insurtech players.
The report also stated that the growing digita usage, data privacy, access to human guidance and reliable online services are top-of-mind to consumers than the benefits of new-age technology solutions. Going forward, consumer preferences with digital insurance will be centered around simple-to-understand, transparent, trustworthy, and personalised services. Additionally, 24*7 access to the services, user-friendly web interface, mobile accessibility and competitive premium rates will define the future course for the insurers.
Sangeeta Gupta, Senior Vice President and Chief Strategy Officer (CSO), NASSCOM, commenting on the report, said, “The insurance industry has traditionally relied on face-to-face sales conversations, but with the advent of digitalisation, it has transitioned into a hybrid model approach. Cutting-edge technologies such as Machine Learning (ML), Artificial Intelligence (AI), automation and data analytics have played a pivotal role in the digital transformation of insurance operations.”
India, as an overall insurance market, has grown at nearly 8.4 per cent per annum since 2018, compared to the global 2.4 per cent during the same time. Non-life insurance have grown a lot faster, clocking between 15- 20 per cent growth, and surpassing that of life insurance in FY2022. The rise of the sector’s penetration has been in sync with the growing share of its private insurance players.
Girish Nayak, Chief – Technology and Health Underwriting and Claims, ICICI Lombard, also said, “In the contemporary insurance landscape, the integration of technologies such as AI, ML, data analytics and digital is profoundly reshaping industry dynamics. Insurers have transcended their traditional roles as mere policy providers and claim payers; they’ve evolved into architects of data-driven customer journeys and builders of risk-management strategies. These transformative technologies empower insurers to offer policies that are tailored to individual needs, expedite claims processing with unprecedented efficiency, and gain invaluable insights into customer behaviour. In this digital-driven evolution, ICICI Lombard, as a leading insurance company, not only mitigates risks, but also embraces opportunities, where data and customer-centricity are paramount. As the industry marches forward into this era of digitalisation, it’s about building enduring life-time relationships with customers, enhancing and protecting their lives, and contributing to a more secure and connected world.”