Insurtech: A New Wave Of Disruption
Outlook Money|June 2019
Insurtech: A New Wave Of Disruption

Technology has been transforming the insurance sector substantially

Nirmala Konjengbam

The Indian insurance industry has witnessed a remarkable technological transformation in the recent past. Today, most insurers use technology-driven methods to reduce and replace human effort in order to provide seamless digital experience to their customers.

With the availability of new technologies, the real task is to identify relevant technology advancements, which can deliver maximum value in a business domain. No doubt that Millennials are early adopters of technology and prefer to transact via digital modes be it purchasing a product or accessing information on their policies. Insurers are constantly working on developing voice immersive experience, wherein the customer can verbally place the service requests, further elevating the customers’ service experience.

Commenting on the technological advancement within the insurance industry, Sachin Goel, Chief Technology Officer, Tata AIA Life Insurance, said, “Technology and technical innovations are driving the growth and evolution of the insurance sector. The Internet of Things (IoT) advanced analytics, digital platforms, block-chain, artificial intelligence (AI) and big data are providing new ways to price and manage risk, engage with customers, reduce cost, improve efficiency and provide effective insurance solutions.”

The most vital reason for technological advancement in the field of insurance is to ease customers’ experience. With the advancement in technology, there is a possibility of conducting risk determination on an individual basis, rather than generalizing based on demographics in the near future. One of the major benefits is the cutting down of distance between a customer and the insurance provider. While only a few are willing to discuss their personal finance with a financial advisor. Despite that, a majority of people buy insurance under the influence of agents. Few years’ back the whole process of insurance was done manually where products were mostly sold by agents. However, now, those are things of the past.

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June 2019