Emergence of Digital Transformation in Indian Insurance Market & Associated Safe-guards needed

Fueled by FinTech investments and Insurtech startups, Indian insurance now become a hothouse of digital innovation. In response, insurers started embracing various changes and rethinking on their business models to move towards a compliant, secure and digitally-enabled operating model to enhance customer, employee, partner and other stakeholder experiences.

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The digital transformation in Indian insurance market:

Here in India, the insurance sector has taken longer period to embrace digital transformation than many other sectors. This is mainly for, the chosen preference for personal relationships when dealing with insurance placements and the complexity of the insurance purchase processes, particularly when it comes to pension, ULIP and annuity products (in the life sector) with high-end values or Project & Liability insurance coverages (in non-life sector) for their discreet specific underwriting requirements.

Fueled by FinTech investments and Insurtech startups, Indian insurance now become a hothouse of digital innovation. In response, insurers started embracing various changes and rethinking on their business models to move towards a compliant, secure and digitally-enabled operating model to enhance customer, employee, partner and other stakeholder experiences. Newly invented digital tools and capabilities help insurers to streamline new product developments, digital experiences and the transformation of key functions - from positioning, marketing, distribution, underwriting, investigations and claims to finance and accounting.

Digitalization is getting a lot of momentum in the Indian industries and the insurance sector is obviously emerging out to be one of the biggest beneficiaries - in regard to enhancing its footprint, selling of new policies, settlement of claims and creating digital intermediaries - as technology is playing the crucial role in insurance outreach. Intermediaries and agents are the integral part of the business to help reach insurance penetrate into uninsured areas but in majority of the cases insuretech is being used as the mean of distribution for existing products to new customers.