The insurance industry is undergoing a major rethink. With the rise of digitalization and innovation, there has been a steady growth in new technologies, products, and services that are revolutionizing the industry. Consequently, a new industry has come into being: Insurtech. The advancement of tech in the insurance sector has been remarkable. Insurtech is making a huge impact on risk management and insurance, although there is still plenty of space for expansion.
Insurers are rapidly engaging in technology businesses and developing innovative solutions and platforms internally. As the Insurtech industry is growing, new companies are joining the market and making a reputation for themselves.
Now, let’s take a look at the reasons why the Insurance Landscape is changing due to Insurtech platforms:
Online platforms are allowing disparate businesses to collaborate and realize efficiencies that were inconceivable even a decade earlier. These tech-enabled business strategies are creating new insurance ecosystems.
Now, Insurance may be bundled and sold with commodities and services in a variety of industries. This includes healthcare, transportation, and e-commerce. During the ongoing COVID-19 epidemic, this tendency is becoming increasingly obvious. People did gravitate to online platforms for a wide range of demands, from employment and education to recreation and shopping.
COVID-19 Facilitated Rapid Insurers’ Digital Engagement
The introduction of COVID-19 has quickly boosted general understanding in India regarding both medical risk and insurance coverage. A previous Swiss Re poll of Asian marketplaces in May 2020 reinforced a similar trend, with two-thirds of participants expressing concerns about their healthcare and well-being. This indicated that their insurance policy purchasing habits will transition to digital channels.
In fact, India recorded a doubling of medical insurance sales figures from March 2020 to May 2020. A poll conducted by Max Bupa Health Insurance discovered that millennials who are 27–35 years old; had begun to inquire about medical insurance as the epidemic progressed.
Indian insurers reacted rapidly to the epidemic by establishing COVID-19-specific policies. The short-term health plans took care of the immediate requirements of the Covid-19 hospitalization during the countrywi
de shutdown, which began in March. Policies are largely sold digitally, with payment and e-commerce applications for delivery.
Insurers have also released a COVID benefit-based plan designed by the government. Some conventional agency sales forces have online technologies to help them operate through the nationwide lockdown and ensuing social separation.
Before the epidemic, Indian insurers were beginning to migrate to digital-first customer support, but COVID has expedited the speed of transition, and firms have brought innovative products to the marketplace ahead of time. Optimizing customer support operations by expanding the usage of video conversations, AI-assisted telecommunications, and cashless claims processing are among them. Some companies have gone paperless with their consumer onboarding and streamlined their claim procedures. However, the use of online chatbots has increased by half at insurers that have used multichannel techniques.
Platform Collaborations can Broaden Insurers’ Service Offerings
In India, online platforms span from lifestyle, ride-hailing, and payment platforms like PayTM, Urban Company, and Ola to e-commerce platforms like Amazon and Flipkart and much more. They have a diverse set of customer touchpoints and data that insurers may use to facilitate quicker client onboarding and broaden the bounds of insurability.
These cross-industry synergies can bring insurers closer to their customers and allow them to handle client risk more flexibly. Online insurance start-ups use technology to overcome conventional constraints such as complicated products, few consumer touchpoints, as well as terrible customer service. To match consumer requirements, incumbents have begun to engage in digitizing corporate operations and cooperating with online platforms.
Insurtech for the Win
Insurtech firms are more adaptable, reactive to digital trends, and technologically advanced. They are primarily interested in mobile-first systems and solutions that enable clients to handle all of their insurance-related operations online. Hence, all of these actions and priorities are helping to modernize the insurance sector by emphasizing digital and computerized procedures.
The insurance industry is going through a major transitional period. Big data technology and sophisticated systems are prompting a shift in how insurers manage risk, which may have long-term implications for business strategies. The demand for the latest tech and the knowledge required to produce it knows no bounds. Customers desire efficiency, accessibility, and transparency today more than ever before. Trends and technologies in the insurance business are fast being merged into platforms and coupled with other products such as repairs and maintenance, medical care, and risk assessment.
As a consequence of the increased availability of information, Insurtech firms are shifting their focus from risk transfer to risk control and reduction. This shift will determine whether insurance companies thrive over the coming decade.
Current insurance businesses must become more receptive to fresh concepts from emerging Insurtech startups that stay up with technology advances and disrupt the current industry in order to stay viable. In order to keep up with the changes, insurance firms will need to embrace Insurtech enterprises and startups.