How Innovations Are Changing the Game for Life Insurance in India

Aug 28, 2019 | 2 months ago | Read Time: 3 minutes | By iKnowledge Team
How Innovations Are Changing the Game for Life Insurance in India

Introduction

The word ‘Digital’ today is one of the largest trends that is shaping, disrupting and transforming many industries. Life Insurance is no exception to the same.

Consumers are increasingly looking for life insurance products that are convenient to buy. Insurance companies have recognised the need to step it up with cutting-edge products for consumers. There have been many innovative changes with respect to life insurance products in India.

Features that Define the Insurance Industry

Three key features that are reshaping how the insurance industry will work in the future:

•    The arrival of tablets, smartphones and the decreasing cost of computing, along with advanced technologies like machine learning, artificial intelligence, and bots, is allowing insurers to completely re-imagine their business models

•    Internet of Things (IoT), combined with a wide variety of devices that connect to capture rich real-time data.

•    The third development is the ability to garner and use data. Data is really the new oil.

Keeping these three factors in mind, we give you a lowdown of how the insurance landscape in the country has changed, and what’s in it for you in future:

Tangible benefits of technology

Tangible benefits of technology

The digital revolution has already transformed human lives significantly. Most of your transactions are now made online, be it utility bills or flight bookings. You may also have noticed that you can also now buy insurance online, and pay lower premiums as there are no agent commissions involved. The accessibility has enabled customers to pick and choose insurance products after getting a quote in just about a couple of clicks.

With technological advancements, insurance companies are also modulating their business models. This has made it easier for consumers as they can buy their products online now. They have also introduced customer support options in real-time, which was unheard of before. For example, you are automatically directed to chat with a customer support representative when you log on to insurer sites.

Further, channel-based distribution or customer segmentation models are no longer considered viable. Advancements in smartphones, artificial intelligence, and bots, combined with devices that can capture real-time data, are helping insurers offer a world-class experience of their products. Mobile technology has also enabled insurers to provide services to customers whenever or wherever they need access to their products.

Enhancement in customer engagement

Insurance companies are constantly collecting data to make services better for their consumers. For instance, they have surveys and questionnaires for their customers to figure out ways to improve their service. This will help insurers to reach out to their customers for new information such as their new address. Thanks to new-age analytics, significant life events may be also followed by alerts to give you the best customer engagement possible.

Services for retirees, elderly, rural folk

India will have over 350 million people over the age of 50 by 2030. Life expectancy has also grown substantially in the past few decades. Keeping these in mind, insurance companies are already offering one-stop retirement solutions to people.

When it comes to rural areas, insurance companies know they have an untapped market. With the advent of technology and internet, the consumption pattern and preferences of the rural population have changed. So, products like micro-insurance have been designed keeping the rural centres in mind.

Despite technological progress in every arena (including medical advancements), we have reached a stage where the possibilities of an unfortunate event or premature death outweigh the odds of living a long life. Be that as it may, the term insurance options that you buy when you start working may end when you are about 60-65 years old. This could leave you with no insurance after you hit 65. To address this, Aegon has a term plan that covers you for up to 100 years.

Aegon Life’s online term plan secures your family based on the coverage amount you choose against a monthly or annual premium. The plan offers cost-effective protection for your loved ones, if the worst were to happen.


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