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Digitalisation - Future of Insurance Industry?

Modern customers require quick and instant resolution to their needs. Online transactions offer ease in various insurance-related processes. There are many advantages of digitalization like Quick Service, Lower Premiums, etc.

By: Abhishek Kumbhar | 
Read Time: 2 minutes, 35 seconds | 
Last Updated: 08-04-2022
Digitalisation - Future of Insurance Industry?
With the advent of new technologies, digital platforms, and mobile apps, customers increasingly expect faster and more effective service than ever before. They expect quick service from the minute they purchase insurance to the time a claim is settled. In the ever-changing post-pandemic world, the digital transformation of various legacy industries continues to evolve at a faster pace. Traditionally slow-moving industries such as the insurance industry are also making remarkable progress in adopting various technologies. Powered by digitization, the insurance sector grew 17 percent in April-May this year compared to a nine percent growth in 2020-21. The Finance Ministry and the regulator IRDA are confident of 40-50 percent growth in the next five years.

Advantages of Digitalisation:

  • Quick service
With all processes moving online, the transit time gets eliminated entirely. This makes the process entirely swift and smooth. You can now compare various plans with just a click of a button on MyInsuranceClub unlike before when consumers had to contact various company representatives for quotations.
  • Hassle-free claims
Before digitalization, making a claim was a tedious and lengthy process which would take weeks together to settle. But post digitalization, the need for physical documentation got eliminated and this has made the claims process quick and hassle-free.
  • Lower premiums
When a company is operating offline, there are many costs involved like operating costs, commissions etc that get added up to the premium. Similarly, when you purchase insurance from any online web aggregator like MyInsuranceClub, all these costs are eliminated and you can buy your insurance at a relatively lower premium.
  • Customer-centric products
Many insurers have started using Artificial Intelligence, Analytics, and IOT to understand consumer behavior and needs. This has enabled insurers to make better customer-centric products.
  • Increased transparency
With many processes getting automated, critical metrics are now directly computed which eliminates the scope of human error. Well-documented processes and transparent workflow give better visibility to customers. 
 
  • Quality & Consistency
With follow-up automation and chatbot support, the customers will receive the same quality of service consistently. Because of the assurance of quality and consistency, as well as the time and efficiency benefits, insurers may begin designing higher-quality, more feature-rich products with little or no increase in premium costs.
  • Convenience 
Modern customers require quick and instant resolution to their needs. Online transactions offer the ease of engaging in various insurance-related processes. Besides, online transactions can be done from home or any other place and at any time, offering convenience to customers

The future looks promising for the insurance industry with several changes in the regulatory framework which will lead to further change in the way the industry conducts its business and engages with its customers online. Gone are the days when buying or renewing insurance meant discussing insurance needs with an advisor and then opting for a plan suggested. With consumers being more and more tech-savvy, digitalization would surely change the way the insurance industry functions.

You can Compare and Buy Term Insurance Plans online on MyInsuranceClub - India’s 1st IRDA-approved web aggregator. Feel free to contact our trained insurance executives for any guidance or assistance. 
Read this article in Hindi

Abhishek Kumbhar
Abhishek Kumbhar is an Insurance Analyst with rich experience in the Finance Industry. With his extensive knowledge and exposure of the Insurance sector, he writes articles to provide insights about different aspects of Insurance.

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