Category: InsurTech

Strategies for Success: How MGAs Can Thrive in the Indian Insurance Industry

Strategies for Success: How MGAs Can Thrive in the Indian Insurance Industry

December 26, 2023

MGAs (Managing General Agents) are currently not existent in the Indian insurance industry. However, there is a genuine need for the introduction of more MGAs into the industry, considering the country’s overwhelming need to scale up insurance penetration (just 3.76% of the population had insurance coverage in any form in 2019). MGAs will help the industry considerably by identifying niche markets and underserved segments and offering specialist solutions for the same on behalf of insurers. It will be possible to offer customised and more value-added micro insurance in India which is not possible for bigger insurance players across several regions. Insurance MGAs can help in the extension of coverage throughout several under-served and rural areas, where traditional firms have limited presence due to the lack of resources and infrastructure. MGAs can also partner with local brokers and agents to offer more tailored insurance products that meet community-specific requirements with aplomb. As mentioned, they can also cater to niche and often underserved (by bigger insurance carriers) segments like startups, HNIs (high-net-worth individuals), and SMEs (small and medium enterprises). Insurance MGAs can also enter into collaborations with insurtech players that are already leveraging technology to disrupt the industry. Through these partnerships, these startups can tap their distribution networks and expertise in claims management and underwriting. MGAs Competitive Landscape and the Need for Proper Strategies MGAs (Managing General Agents) do not exist in the Indian market today. However, they are steadily becoming more relevant worldwide and also throughout Asia. The IRDAI is already considering the feasibility of allowing MGAs in a bid to increase insurance penetration throughout the country and it may become a reality soon. The traditional argument in favour of MGAs is usually based on the fact that global and large insurance carriers have become behemoths with commoditised and mass-market products and services, which do not focus on individual customer requirements. MGAs, in contrast, are smaller operations which can easily foray into niche areas and enable bespoke and more affordable insurance solutions tailored for their customers. The sector may develop exponentially across Asia over the next 2-3 years. Hong Kong is anticipated to stay a more dynamic coverholder segment and more MGAs should come up in Singapore. More regulators in the region will steadily amend their frameworks and unveil pilots to allow MGAs into their insurance industries. The usage of MGAs is fast becoming a common strategy for distribution channels in insurance. Along with potentially enabling microinsurance in India for specific communities, people, and regions, MGAs can also react more swiftly to new market changes and enable more efficient risk management on behalf of bigger insurance carriers. Hence, considering the competitive nature of the market globally and with things heating up in Asia, MGAs will have to fine-tune their strategies for success in a more intelligent manner. For instance, as far as the Indian market is concerned, here are some strategies that they can consider. Strategies Worth Considering for MGAs in India These are some strategies that MGAs (Managing General Agents) can harness for more success in the Indian insurance industry. As can be seen, the time is ripe for the introduction of MGAs (Managing General Agents) in the Indian insurance industry. MGAs that leverage technology can help cater to niche segments, offer more personalised or micro-level insurance solutions, boost underwriting and claims management, and combine with insurtech or fintech players to revolutionise the industry. The sector has huge potential for growth in India although a lot depends on official regulations being released for the same shortly. FAQs What are the key opportunities for MGAs in India’s expanding insurance market? MGAs can tap several opportunities like the expansion of insurance coverage on behalf of larger carriers in under/un-served/rural markets, offering more niche and personalised insurance solutions with specialist services, making claims processing and management more seamless along with enhancing underwriting for insurance companies, and also offering insurance solutions for sectors usually not covered by traditional insurance firms. What are some examples of successful MGAs in India? There are no examples of successful MGAs in the country as of yet since it has yet to officially allow these entities in the insurance industry. However, the IRDAI is reportedly deliberating on the possibility of allowing them in the future. What are the key trends that MGAs should watch out for in the Indian insurance market? Some of the major trends that MGAs should watch out for in the Indian market include the focus on more specialist and micro insurance solutions, increasing customer demand for personalised insurance products and services, and of course, the increasing shift towards digitisation.

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2024 Outlook: Data-Driven Transformations in the Indian Insurance Brokerage Industry

2024 Outlook: Data-Driven Transformations in the Indian Insurance Brokerage Industry

December 15, 2023

The Indian insurance brokerage ecosystem has witnessed rapid change in recent years, driven by data-driven transformations. This has revamped overall decision-making, marketing, and customer support in a major way and the trend looks set to continue in the future. Here is a closer look at how data-based transformation will ultimately impact the operations of brokerages in the Indian insurance market in 2024 and beyond.  Ways in Which Insurance Brokers Will Leverage Data Data analytics in insurance will be a major game-changer shortly for brokers. Indian insurance brokerages will ultimately turn to these models of operation.  Brokerages will also embrace technology to offer customers better services across WhatsApp, emails, SMS, or phone among other channels. They can reach out better to customers at the right time and place along with forecasting buying trends and patterns. Data analytics will help with customer behavior analysis which will unearth several invaluable insights in turn for brokers. The end goal will be to provide customised and need-based solutions across segments. Target consumers can be easily identified and segmented while products can be tailored to meet their needs. Brokerages can also leverage technology to help insurers with better underwriting, eliminating fraud enabling risk management, and maximising usage of alternate data sources. They can also use data for collaborations with other parties for specific use cases and scenarios.  These are some of how Indian insurance brokerages will gradually adopt data-driven transformations to help build competitive advantages throughout the insurance landscape.  FAQs What key data-driven transformations are anticipated for the Indian insurance brokerage industry in 2024?  The Indian insurance brokerage industry in 2024 could adopt several data-driven transformations including personalised customer products and services along with automated and faster claim settlements and processing. They can also delve into personalised pricing decisions and models to benefit their customers.  What role will emerging technologies play in shaping the data-driven landscape of Indian insurance brokerages in 2024?  Several emerging technologies like AI, automation, machine learning, and data analytics will have a vital role to play in shaping the entire data-based Indian insurance brokerage landscape in 2024. They will make it easier to build customer profiles, target and segment customers in specific categories, predict customer buying patterns based on behavioural habits and preferences, and customise products/services and pricing accordingly among many other use cases.  In what ways will data analytics impact risk management and decision-making processes for Indian insurance brokers in 2024? Data analytics will help Indian insurance brokers make better decisions and manage risks more effectively in 2024 and beyond. Analytics will help them identify potential risks at the customer’s end and also eliminate the chances of fraud. At the same time, it will help make better decisions on personalising pricing as per customer habits and lifestyle preferences. It will also help make better decisions on policy issuance depending on customer data from multiple channels. 

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Indian Insurance Brokers Harnessing Data Analytics for Business Growth

Indian Insurance Brokers Harnessing Data Analytics for Business Growth

December 4, 2023

The Indian insurance sector has witnessed growth by leaps and bounds in recent years. At the same time, in a bid to drive future business growth in insurance, several brokers and insurtech platforms have been leveraging data analytics to great effect. It is worth mentioning that based on S&P Global Market Intelligence reports, India currently has the second-biggest insurtech market in all of the Asia-Pacific region. Mordor Intelligence has also forecasted the online insurance market in the country to touch INR 220 billion in value by 2024. This will be a testament to the growing popularity and relevance of digital channels and engagement along with self-service platforms for quick and easy access. A lot of this growth will be fuelled by Indian insurance brokers and platforms harnessing analytics in insurance industry. Here is a closer look at some of the recent success stories of these brokers who have tapped analytics for future growth opportunities galore. Successful Insurtech Platforms and their Digital Transformation Here are some of the insurtech platforms cum Indian insurance brokers who have used analytics and other digital technologies to power growth. How Analytics is a Win-Win Proposition for Insurance Brokers By leveraging analytics and AI algorithms, insurance brokers can naturally stimulate faster and more organised growth. They can personalise products and services for higher customer satisfaction and conversions/sales alike in addition to forecasting customer needs and future market trends. Analysis of current market patterns also helps tailor products as per diverse customer segments. In turn, there is also the ability to come up with better growth strategies while enabling faster data-based underwriting and claims settlement. This leads to higher customer retention and steady business growth. Insurance brokers are more driven by the need to provide real-time services across omnichannel and digital frameworks. There is a huge amount of data that is being generated at every customer touch point and transaction. This can be leveraged for various needs, right from understanding target customers better and segmenting them to offering tailored solutions, enabling faster processing and claims settlement, and also coming up with better marketing campaigns that resonate with audiences. Hence, the role of digital analytics is pivotal for insurance brokers and insurtech platforms in the country. In an increasingly digital world, its relevance is only poised to grow exponentially. FAQs How have Indian insurance brokers successfully implemented data analytics for business growth? Indian insurance brokers have successfully implemented data analytics for business growth in several ways. They have used analytics to understand customer wants and personalise products/services accordingly. Analytics has also helped enable faster claim settlement and processing along with better underwriting. Instant risk modeling and profile-building are also possible along with forecasting future market patterns. What key metrics or indicators have these success stories highlighted in leveraging data analytics for business success? Some of the key indicators or metrics highlighted by these success stories in leveraging data analytics for business success include personalised solutions/services, servicing, claim settlement, automated underwriting, customer recommendations, and more.

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The Potential of MGAs to Transform the Insurance Landscape in India

November 30, 2023

MGAs (Managing General Agents) have immense potential to completely transform the insurance industry in India. These new-age entities may enable higher insurance penetration in India with the insurance regulator already considering the future viability of allowing them to operate in the country. A managed general entity or MGA is just like an NBFC (non-banking finance company). It can manage products, onboard customers, underwrite customers, and also share risks with bigger insurance companies.  These entities are not officially existent in the country as of yet, although there could be a bright future of MGAs in India, considering how they are already popular in markets like Singapore and the U.S. The IRDAI (Insurance Regulatory and Development Authority of India) is now considering MGAs and their future scope. Once the regulatory environment for MGAs is created, present intermediaries who only focus on distribution will then have a bigger role in the scheme of things, revolving around product manufacturing and even customer lifecycle management. MGAs in India- How the Story May Unfold In a similar vein as the RBI (Reserve Bank of India) unveiled its FLDG (first loss default guarantee) regulations, the insurance industry is considering the possibilities that MGAs (Managing General Agents) may unfold for the sector. They will embark on sharing risks with insurers in a similar manner as fintech players already do with NBFCs and banks among balance-sheet lenders. The IRDAI has already been tasked by the Central Government to increase insurance penetration in India. This will not be possible without the help of technology while new license forms will enable the creation of newer companies which will ultimately popularize coverage throughout the country. A perpetual license has been proposed for intermediaries in the insurance industry by the RBI. It has also come out with fresh license in the life and general categories for new-generation entities. With the advent of MGAs, there will be more opportunities for new-generation technology entities. They can tie up with large-balance sheet insurance companies and enter into partnerships for risk-sharing while also underwriting customers with higher use of technology and more customized insurance solutions. The Future of MGAs in India- Major Benefits MGAs (Managing General Agents) can offer several advantages for the insurance industry. These include enabling more customized products for any particular coverage, which larger insurers may not always be familiar with. MGAs may also help in the creation of more regional products for insurers, particularly in segments where they may not have a physical presence. MGAs may also solve issues linked to distribution while focusing more on clients (insurers can focus more on taking risks). They can also build newer products which are tailored for un-served segments throughout the country. How MGAs can Generate More Value Here are some of the ways in which MGAs can ensure more value across the industry. There are several types of MGAs globally including affiliated MGAs, nonaffiliated MGAs, and even crop MGAs. The concept is already popular globally, with 300+ MGAs in the United Kingdom alone placing more than 10% of the country’s general insurance premiums, which are estimated at £47 billion. Lloyd’s, for instance, is the biggest global market for MGAs and in 2020, it had a whopping 76 syndicates that were under the management of 50 general agencies. MGAs usually maintain more attractive financial profiles, generating revenue through commissions paid by insurers, additional services, and performance-based commissions or profitability contingents. One of the biggest advantages of MGAs is that they can offer specialized underwriting abilities and expertise for emerging and newer risks. Digital MGAs are also increasing worldwide, targeting particular customers and offering specific lines of insurance. With all these benefits at the forefront, MGAs are steadily becoming attractive propositions for the insurance industry worldwide. It should also be a matter of time before they enter the Indian market. FAQs What are MGAs (Managing General Agents)?MGAs are managing general agents who function like NBFCs, managing insurance products, onboarding customers, underwriting customers, and also sharing risks with larger insurance companies. What are the key benefits of MGAs for insurance companies?MGAs offers several major benefits for insurance companies, including swifter entry into newer markets without setting up infrastructure, handling specific lines of insurance, offering underwriting and distribution solutions and expertise, and offering regional expertise and outreach in a better manner. What are the challenges faced by MGAs in the Indian insurance market?MGAs currently face a major challenge in the form of final regulatory approval. The IRDAI is considering the possibility and feasibility of allowing MGAs in the Indian insurance industry. Hence, the present lack of a regulatory environment for MGAs is the only hurdle. What are the future prospects for MGAs in the Indian insurance industry?MGAs have bright prospects in the Indian insurance industry. The IRDAI is already considering the feasibility of allowing them and once they enter the industry, several distribution and tech players will have a bigger role to play eventually. MGAs will also help expand the scope of coverage and tailor it for newer risks as far as insurance carriers. They can significantly enhance insurance penetration in India in the future.

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AI-Powered Customer Support: A Win-Win for Insurers and Policyholders

AI-Powered Customer Support: A Win-Win for Insurers and Policyholders

November 13, 2023

AI-powered customer support is a major catalyst for change in the global insurance sector, enabling numerous benefits for insurers and policyholders alike. The insurance industry has already shifted focus towards offering top-notch customer service with a more customer-oriented model. As per several reports, in 2021, more than 40% of CIOs scaled up their budgets for implementing AI for their pilot projects in the insurance sector with an aim to enhance customer service.  The customer base in the insurance and financial services sector now desires more personalized solutions along with quicker processing for inquiries, and enhanced security for personal information, among other customer-focused aspects. Here are some advantages enabled by AI-powered customer support.  Insurer Customer Service- Benefits of AI in Insurance AI in insurance has been a game-changer for the industry, offering several advantages for both companies and their policyholders in terms of insurer customer services and support. Here’s looking at some of them in a nutshell:  How Else Can AI-Powered Customer Support Help?  AI-powered customer support is already revolutionizing the sector rapidly. Companies like Edelweiss General Insurance (EGI) have already set the ball rolling by introducing AI-based voice bots for enabling registrations of motor claims. This helps customers initiate their claims swiftly and seamlessly. This AI bot can easily interact with customers in English, Hindi, and even Hinglish. It also enables registration of claims in real-time on a 24-7 basis while offering round-the-clock support alongside.  These AI-backed insurer-policyholder interactions go a long way towards simplifying customer support and service, answering questions, offering guidance and information, registering claims, offering support around the clock and streamlining claims management. Bots will also enable swifter resolution of claims along with enhancing customer satisfaction and operational efficiency levels considerably. Interactions can be easily automated while robotic interpretation of voicemails helps save time and enhance overall accuracy levels before calls reach human representatives. AI also enables automated customer support throughout multiple channels, which ensures better responsiveness and availability. It can also augment interactions with customers through augmented email tagging and messaging alike.  AI in insurance can also analyze big data sets while suggesting relevant content based on customer location and behaviour among other aspects. AI can evaluate customer behaviour and sentiment to improve responses in the long run. It also builds personalized customer experiences, making it easier to bypass issues before they crop up. AI can help customer service representatives take care of their follow-up duties in time. Agents get help with writing in real-time along with insights from customer data. Generative AI can hugely boost customer segmentation in analytics. It can easily identify customer similarities and patterns by evaluating huge amounts of customer information. This includes psychographic, demographic, and behavioural information. It helps in segmenting customers more effectively. Insurers can benefit from features like automated feature engineering, personalized recommendations, customer clustering, predictive modelling, and sentiment analysis.  To sign off, AI-powered customer support helps insurance companies greatly in terms of enhancing their customer support and service functions with better guidance, quicker responses, and timely assistance. It is certainly the way forward for the industry, going by the recent trends.  FAQs How does AI-powered customer support enhance the insurance experience for policyholders? AI-powered customer support boosts the overall experience for policyholders greatly. They can get instant and timely resolutions to their queries along with better engagement and understanding of their concerns. At the same time, they also benefit from faster claims registration, management, and handling along with quicker and more hassle-free onboarding and claims processing.  What specific tasks and processes in the insurance industry can AI-driven customer support streamline and improve? AI-driven customer support can not only improve, but also support various processes and tasks including customer communication and notifications, answering questions, providing relevant content, registering claims, archiving requests, following up with requisite channels, managing claims, and more.  What are the potential cost-saving benefits for insurers when implementing AI-powered customer support? Insurance companies can save time and money considerably on customer support and service processes by automating diverse tasks. From eliminating the need to manually store, archive, and gather data to doing away with paper-based systems, the cost savings are huge for insurance companies.  How can insurers ensure the security and privacy of policyholder data while using AI in customer support interactions? Insurance companies can ensure more privacy and security of policyholder information while deploying AI for their customer support-based interactions. This is possible with steps like data encryption, fraud detection mechanisms, identification of suspicious customer behaviour patterns with relevant algorithms, and more. 

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Insurtech Trends: 2024 and Beyond

Insurtech Trends: 2024 and Beyond

November 9, 2023

Insurtech or insurance technology has become a major buzzword throughout the industry in recent years. In fact, there are several interesting 2024 insurtech predictions that can amp up the game for insurance companies and customers alike, not just in the next year but also beyond. Deloitte reports have unearthed several key parameters for the insurance industry in the near future. It has highlighted aspects like higher severity and frequency of various global risks like cybercrimes and climate change disasters which necessitate the insurance sector’s capability and readiness to respond as safety nets. At the same time, most insurance companies are now realising how preventing losses is the way to move forward and not just responding to risks.  There is also a major shift towards a more customer-focused model and this is where insurtech innovations can come into play. Advanced adoption of insurance technology will be needed to drive this transformation along with modifications in respect of company cultures. The report also highlights how insurtech firms remain at the forefront of developments in the sector. Let us now take a closer look at some of the biggest insurtech trends for 2024 and well beyond.  Biggest Insurtech Trends Worth Noting Here are some of the 2024 insurtech predictions that will eventually bring about a major shift in the industry. The future of insurtech will largely depend on the abilities of insurance companies to harness and leverage these technologies for the greater good of customers and their own operations alike.  These are thus some of the major insurtech trends that should reshape the industry in 2024 and well beyond. Insurance companies will adopt technology in a big way for streamlining processes, lowering frauds, cutting costs, and most importantly building better and more personalised relationships with their customers.  FAQs What are the emerging insurtech trends expected to shape the insurance industry in 2024 and beyond? Some of the emerging insurtech trends that can shape the industry in 2024 and beyond include the higher adoption of artificial intelligence and machine learning along with automated processes, Chatbots for customer service, blockchain technology, and IoT-based data collection.  How are artificial intelligence and machine learning influencing the evolution of insurtech solutions? Artificial intelligence and machine learning are the biggest influences on the evolution of contemporary insurtech solutions. They are enabling personalised policies and pricing with data analytics along with automated claims processing, more accurate underwriting, and more use cases throughout the sector.  What role does blockchain technology play in enhancing transparency and trust in insurance transactions? Blockchain technology has a vital role to play in boosting trust and transparency across insurance transactions. It offers smart contracts and security protocols that help simplify claims processing while lowering the risks of manual fraud.  What regulatory changes and challenges should the insurance industry anticipate as insurtech continues to advance? With the advancement of insurtech solutions, the insurance industry should anticipate regulatory challenges and changes relating to consumer consent, data privacy and security, the need for human judgment, and the elimination of bias throughout the decision-making process. 

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Exploring Embedded Insurance Across Industries

Exploring Embedded Insurance Across Industries

October 25, 2023

Embedded insurance is steadily becoming a transformational concept across industries like insurance, finance, e-commerce, and a wider scope of transactions. It is steadily becoming a major insurance sales channel while ensuring access to a higher number of customers. Based on reports, the market for embedded insurance is slated to touch $700 billion in GWP (gross written premiums) by the year 2030, which is six times the present market size and more.  A Closer Look at Embedded Insurance This concept is enabling better insurance integration and industry-specific insurance alike. Embedded insurance means the bundling of insurance with any service or product. This means that customers do not have to purchase any insurance coverage directly. Whenever they purchase any product or service, there comes an option to obtain insurance at a comparatively lower cost. The easy availability of the same and reasonable cost make it a better option for customers. This is steadily gaining popularity since several areas are not readily covered under insurance policies.  Embedded insurance solutions can offer coverage at reasonable costs for transactions like buying bus tickets or railway tickets, for example. There are also options to obtain insurance while purchasing electronic goods and other devices.  How it Works and Major Benefits  Based on recent embedded insurance trends, here are some points worth noting.  Challenges and Steps to Follow for Insurance Companies There are a few challenges for insurers while some inputs will help insurance companies successfully venture into embedded insurance.  Insurance companies will increasingly require technology-enabled embedded insurance solutions to successfully foray into this space. A strong PAS should be built for launching and creating newer products and integrating partnerships along with rating engines for simpler policies with lower terms and conditions. Joint branding initiatives like white labeling of the front-end portal will be crucial along with integrations with partner systems and simpler claims systems. Embedded insurance offers several advantages for customers as well.  How Customers Benefit  Customers benefit from embedded insurance solutions in the following ways:  Going forward, it is evident that insurance companies will rely more on embedded insurance and partnerships with a wider spectrum of entities and brands. The industry will adopt this concept to offer a differentiator and higher personalization for customers along with evolving in tandem with the latest market trends.  FAQs What is embedded insurance, and how does it differ from traditional insurance models? Embedded insurance refers to the bundling of non-insurance products/services with insurance plans at the point of sale at nominal costs. It is different from traditional insurance models which cover only specific categories and have to be separately purchased by applying and completing documentation. How can embedded insurance benefit consumers in various industries? Embedded insurance can be beneficial for customers since they can quickly get access to insurance with their products/services at the point of sale without leaving the application or website. This coverage is available at a lower price and often tailored to their specific needs. This will ultimately boost convenience and save time as far as customers are concerned.  What industries are currently embracing embedded insurance, and what are some notable examples? Several industries like e-commerce, travel, hospitality, automobiles and consumer goods are already adopting embedded insurance. Some examples include Airbnb’s partnership with Generali, AON, and Europe Assistance for its travel insurance plans.  What challenges and regulatory considerations are associated with the adoption of embedded insurance in different sectors? There are a few challenges including adherence to regulatory policies regarding data usage, security, and consent. Other challenges include creating 360-degree customer views, movement of data across geographies and regulatory mechanisms for the same, and ensuring a smooth claims processing system in sync with the non-insurance partner’s processes.

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10 Ways to Use AI to Get Ahead in the Insurance Business

10 Ways to Use AI to Get Ahead in the Insurance Business

October 17, 2023

Artificial intelligence (AI) is rapidly transforming the insurance industry. Insurers and brokers are using AI to automate repetitive tasks, improve decision-making, provide more personalised service, and reduce costs. In this blog post, we will introduce the top 10 tools for LLM/AI in the insurance business. These tools provide a variety of capabilities that can be used by insurance companies to improve their operations. 1. Google AI Platform Google AI Platform is a suite of cloud-based AI services that can be used to build, train, and deploy AI models. It includes a variety of services, such as Cloud TPUs, Cloud AutoML, and Cloud Vision. Google AI Platform can be used by insurance companies to: Link: Google AI Platform: https://cloud.google.com/ai-platform/  2. AWS AI Services AWS AI Services is a suite of cloud-based AI services that can be used to build, train, and deploy AI models. It includes a variety of services, such as Amazon SageMaker, Amazon Rekognition, and Amazon Polly. AWS AI Services can be used by insurance companies to: Link: AWS AI Services: https://aws.amazon.com/ai/  3. Microsoft Azure AI Microsoft Azure AI is a suite of cloud-based AI services that can be used to build, train, and deploy AI models. It includes a variety of services, such as Azure Machine Learning Studio, Azure Cognitive Services, and Azure Bot Service. Microsoft Azure AI can be used by insurance companies to: Link: Microsoft Azure AI: https://azure.microsoft.com/en-us/services/cognitive-services/  4. IBM Watson IBM Watson is a cloud-based AI platform that can be used to build, train, and deploy AI models. It includes a variety of services, such as Watson Assistant, Watson Visual Recognition, and Watson Discovery. IBM Watson can be used by insurance companies to: Link: IBM Watson: https://www.ibm.com/watson/  5. Salesforce Einstein Salesforce Einstein is a cloud-based AI platform that can be used to build, train, and deploy AI models. It includes a variety of services, such as Einstein Sales Cloud, Einstein Analytics, and Einstein Service Cloud. Salesforce Einstein can be used by insurance companies to: Link: Salesforce Einstein: https://www.salesforce.com/products/einstein/  6. AlphaChat AlphaChat is a no-code conversational AI platform that can be used to build chatbots for insurance companies. It includes features such as natural language understanding, live chat, and authentication. AlphaChat can be used by insurance companies to: Link: AlphaChat: https://alphachat.ai/  7. Chatfuel Chatfuel is a no-code chatbot development platform for Facebook, Instagram, and WhatsApp. It can be used to build chatbots for insurance companies to provide customer support, answer questions, and generate leads. Chatfuel can be used by insurance companies to: Link: Chatfuel: https://chatfuel.com/  8. PolicyGenius PolicyGenius is an online insurance marketplace that uses AI to help customers find the best insurance policies for their needs. PolicyGenius uses AI to analyse customer data and recommend the best policies from a variety of insurers. PolicyGenius can be used by insurance companies to: Link: PolicyGenius: https://www.policygenius.com/  9. Lemonade Lemonade is a digital insurance company that uses AI to automate the underwriting process and speed up claims processing. Lemonade uses AI to analyse customer data and assess risk more accurately. This allows Lemonade to offer lower rates and faster payouts to its customers. Lemonade can be used by insurance companies to: Link: Lemonade: https://www.lemonade.com/  10. Gabi Gabi is an online insurance marketplace that uses AI to help customers compare insurance rates and find the best policies for their needs. Gabi uses AI to analyse customer data and recommend the best policies from a variety of insurers. Gabi can be used by insurance companies to: Link: Gabi: https://www.gabi.com/  Way Ahead AI is rapidly transforming the insurance industry. Insurers are using AI to automate tasks, improve efficiency, and provide a better customer experience. Additional Benefits of Using AI in the Insurance Business In addition to the benefits listed above, using AI in the insurance business can also lead to: How to Get Started with AI in the Insurance Business If you are an insurance company and you are interested in getting started with AI, there are a few things you can do: AI is a powerful tool that can help insurance companies improve their operations, reduce costs, increase revenue, and improve customer satisfaction. If you are an insurance company, you should consider using AI to stay ahead of the competition and provide the best possible service to your customers.

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Indians are underinsured: 68% have health coverage under Rs 10 lakh

Indians are underinsured: 68% have health coverage under Rs 10 lakh

October 10, 2023

The Indian insurance sector may have found some cheer in reports which indicated how premiums went up for general insurance companies in August 2023 by 12.8%. They touched INR 19,290.70 crore in comparison to INR 17,101.72 crore in August 2022. Standalone health insurance companies also saw premiums increasing to INR 2,590.88 crore (growth of 25.65%) from INR 2,061.96 crore in the year-ago period.  At the same time, an Economic Survey 2022-23 also highlighted India as one of the fastest-growing insurance markets of the next decade. The report also stated how the penetration of insurance across India had gone up from 2.7% around the dawn of the new millennium to 4.2% in 2020. In 2021, life insurance penetration also stood at 3.2% which was twice as high as several other emerging markets and also surpassed the worldwide average. Insurance density in India, based on this survey, went up to $91 in 2021 from $11.1 in 2001. However, despite these favourable indicators, there are recent reports that have drawn attention to several other issues that deserve more focus among citizens, policymakers, and insurers.  An ACKO survey highlights how a massive 68% of Indian policyholders have less than INR 10 lakh as their medical coverage. A hefty 27% also have coverage which is lower than even INR 5 lakh. Some other findings also reveal a starker picture, namely how 64% of people have not scaled up coverage from the last year and how 61% of prospective buyers are not looking at purchasing health coverage with the sum insured crossing INR 10 lakh. Also, 65% opined how coverage up to INR 10 lakh was sufficient.  Some other aspects worth highlighting  1000 respondents were surveyed for the report throughout six Indian metro cities, between 28 and 55 years of age. 60% also opined that they clearly understand their policy terms and conditions. However, the report also highlighted how just 53% had an awareness of cashless treatment, while only 45% and 50% were aware of the 100% bill payment and accident coverage features.  Here are some other insights from the survey:   While purchasing policies, many potential customers and policyholders wish to purchase them directly from their insurers. 30% have already purchased health insurance directly from insurance companies. 52% of customers, however, purchased them from third parties. 36% feel that they will choose policies offered by aggregators while 33% prefer third parties for their insurance requirements. However, policyholders are not as aware of aspects like unlimited coverage availability, the capping of room rent, and consumables coverage. The latter indicates financial coverage for medical aids or equipment that are listed as consumable, including protective equipment, gloves, masks, and so on. The coverage is now an add-on to many policies. Some of the preferred consumables in policies include administrative costs, housekeeping costs, surgical equipment expenses, room costs, and any other item provided in the product, and so on. Yet, the IRDA list is a guideline and insurance companies can exclude or include them as per their desires. The survey throws up several interesting findings. It also highlights a pressing fact, i.e. how many policyholders in the country may be under-insured regarding health coverage. Scaling up health coverage gradually to keep up with rising inflation in medical costs is always recommended in order to stay financially insulated from sudden emergencies and hospitalization costs.

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5 ways Tech is building better customer experiences in Insurance and Banking

5 ways Tech is building better customer experiences in Insurance and Banking

September 28, 2023

Tech innovations have steadily reshaped the insurance industry and banking landscape in recent years. There are several ways in which this digital transformation is enabling superior customer experiences in the space. Multiple financial technology-driven innovations are steadily coming to the forefront and are completely reshaping the sector. For instance, reports state that several insurance players are looking at AI and only a few have upgraded their abilities throughout the spectrum.  One of the biggest trends will be applying AI for disrupting claims, distribution, services, and underwriting, which will create models more familiar as humans in the loop. This enables better customer touch points along with scaling up productivity simultaneously. Distributed infrastructure and cloud will be crucial game-changers along with virtualization and automation in addition to trust architecture. Let us first look at how tech stacks up in the space before examining the ways in which it is creating improved customer experiences.  Where does tech stand in the scheme of things?  Tech innovations are already revamping the insurance industry and here is where they stand currently.  As can be seen, customer experiences can improve in the near future, with suitable financial technology implementation. Here is a closer look at the ways in which the insurance sector has steadily evolved over the last few years.  Benefits that tech brings to customer experiences  Some of these advantages include the following:  Many customers may testify to their insurance experiences improving over the years, particularly with technological advancements. Apps and online platforms have changed the game while multiple background or back-office procedures have also become more streamlined. Technology has also enabled higher cost and time savings for insurance companies while enhancing customer experiences considerably in turn.  FAQs 1. What is customer experience in insurance? Customer experience or CX is the entire process and stages of interaction between insurance companies and customers. This covers queries, inquiries, responses, feedback, guidance, paperwork, applications, claims filing, processing, and more.  2. How can the insurance industry improve customer experience? The insurance industry can considerably enhance customer experiences by lowering claims processing timelines with AI-driven automation. With accurate and swifter evaluation, companies can lower claim payment times considerably. At the same time, they can leverage modern technology to update and remind customers periodically, while using technological tools for responding to customers and providing them ample guidance whenever they need the same.  3. Why customer experience is important in the insurance industry?  Customer experience matters immensely in the insurance industry since it can make or break relationships. Customers may discontinue or not renew policies due to poor experiences in terms of solving their problems, getting information, or completing claims processing or paperwork.  4. What is the best way to improve customer experience?  The best way to boost customer experiences is to focus on resolving customer processes and formalities (including paperwork) in the quickest possible time. At the same time, there should be an emphasis on directing customers to the right resources whenever needed. 

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