How CX and tech are redefining India’s insurtech market, ET BrandEquity


<p>Representative image</p>
Representative image

When you make a sale, you make money. When you focus on customer service, you build a reputation. The average Indian consumer today knows the difference between these two. We live in an era of online shopping and instant resolutions; convenience and personalisation are paramount. This level of customer-centricity in an industry as complex and traditional as insurance would have been hard to imagine for some people. Thanks to timely policy announcements by IRDAI and thoughtful use of technology by key insurtech players, the insurance industry today is on a path where service over sales has become the norm.

Historically, the Indian insurance industry has been fraught with complexities – intricate policy language, cumbersome paperwork and protracted claim processes. However, the rise of insurtech has brought in simplification and innovation. It has enabled a smoother, more accessible experience and forward-thinking insurtech companies are leading this charge. These changes are reshaping the way insurance is perceived and experienced, ushering in an era of convenience, transparency, and customer-centricity. Here is a glimpse of some of the key changes:

The regulatory catalyst
The regulatory framework has been geared towards safeguarding policyholders’ interests. Simplified policies, standardised claim procedures, and systemic support to online platforms and grievance redressal mechanisms have been instrumental in this attempt. IRDAI’s vision of ‘Insurance for all by 2047’, coupled with its focus on the digitalisation of insurance services, is sure to help financial security go across geographical barriers and cater to the diverse needs of customers in tier-two and tier-three cities.

Tech-driven consumer protection

Leveraging advanced analytics addresses three crucial issues: comprehending risk profiles, tailoring useful products, and ensuring financial viability. Protecting against fraudulent activities remains a cornerstone of an insurtech’s mission. Through cutting-edge technology, solutions like pre-issuance video verification and voice recognition bolster identity protection. This has even helped in eliminating the need for in-person verifications in certain cases. Notably, insurance fraud has plummeted by up to 90 per cent since insurtech’s emergence. Industry-leading tools, including voice analytics, further refine risk assessment and fraud prevention, exemplifying the transformative potential of insurtech’s customer-focused approach.

Swift and seamless claims

Insurance is essentially a promise, with claim settlement being the moment of truth. One persistent challenge in the industry has been the often laborious and time-consuming process of claim processes. This would often also impact customer trust and make them wary of investing in critical protection products.

However, recent endeavours like the ‘30-minute claim promise’ and ‘Claim Samadhan Diwas’ have revolutionised this aspect. This commitment to swift claims is fostering trust and setting new benchmarks for the industry.

Empowerment through choice
Insurance used to be a push product where the customer would just end up buying the product their friends or family suggested without evaluating if it was right for their unique financial goals. Digitisation with the right intent has helped key players educate the consumer so that they seek and buy a product of their choice, knowing fully well what they are signing up for. This transformational shift has been driven by helping customers make an informed choice from among all the available in the market. These initiatives have brought about a much-needed culture of transparency in the industry.

Collaborative creation of thoughtful insurance products
A remarkable transformation is taking place in the conception of insurance products themselves. Industry players are collaborating with insurers and regulatory bodies to co-create relevant, customer-centric insurance offerings across diverse segments. This approach ensures that insurance policies are designed to cater to the evolving needs of customers, reflecting a commitment to providing security and confidence. Products like pay as you go in motor insurance, OPD and mental health coverage in health insurance and zero-cost options in term Insurance are cases in point. This shows that insurance providers have started from the point of customer grievance/customer need and reverse-engineered their way to these offerings.

The service-oriented future of insurance

All in all, the future of insurance in India is increasingly becoming service-oriented. First, personalised policies are gaining traction, tailoring coverage to individual needs and lifestyles. Second, digital platforms are streamlining claims processing and policy management, enhancing customer convenience. Third, data analytics is revolutionising risk assessment, enabling insurers to offer more accurate pricing. Fourth, partnerships with tech firms are fostering innovative product offerings, such as usage-based insurance and AI-driven customer support. Lastly, industry leaders are focusing on education and awareness campaigns, fostering a more informed and empowered customer base.

As the industry continues to innovate and prioritise customer experience, it is poised to bring in an era where insurance is not just a financial instrument but a holistic and enriching partnership. With collaborative efforts and a collective vision, the future of Indian insurance is promising, ensuring that every individual across the remotest corners of India can access security and peace of mind seamlessly.

(The author is the chief executive officer at

Immersive CX is going to pave the way forward: report

According to the latest findings from Hansa Research DigiPay CuES 2023, customers cited ‘Easy to Use’ and ‘Instant Payment’ as the key benefits for using mobile payment apps, propelling growth for payment platforms. Purchase, onboarding, payments, post sales service and customer support are all crucial touchpoints, where businesses either win or lose the loyalty of their clientele, it added.

  • Published On Dec 23, 2023 at 08:12 AM IST

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