WHY INSURANCE NEEDS A DISTRIBUTION REVOLUTION, NOT JUST A DIGITAL PUSH

Every few months, India's insurance industry celebrates a new digital milestone. An app promises policy issuance in minutes. An AI chatbot simplifies policy selection. A paperless onboarding journey becomes the latest innovation headline.

- Sanjiv Bajaj

Insurance firms should blend technology with human touch to bolster trust and conviction.

These advances matter. Technology has made insurance more accessible and transparent than a decade ago. But somewhere along the way, convenience began replacing protection.

Despite years of digital investment, India's insurance penetration remains just 3.7% of GDP, far below the global average of over 7%. The industry has become faster at selling insurance, but not necessarily better at making Indians feel financially secure. That is the real challenge.

For years, insurance was treated as an awareness issue. The assumption was simple: people were uninsured because they did not understand insurance. But today's consumer is far more informed. People compare policies online, read reviews, watch explainer videos and calculate premiums within minutes. Awareness is improving. Trust, however, remains fragile—and technology alone cannot build it.