Impact of Digitisation in Insurance Sector during 2017

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InsuranceThere is no surety of what next moment is holding in hand. We often tend to sidekick the financial security, but it is very important in order to ensure the security of an individual in the context of health, travel, vehicle and long-term investments. Insurance is the solution for all the future related questions.  Insurance not only protect the risks and uncertainty but it also provides a secure Investment channel to an individual.

There are various insurance plans that are offered to the customers that one can choose as per the requirement. With time, there are various development and modernisation that insurance companies have also adapted.  Digitalisation is one such step that insurance companies are following in order to match the steps of developed India.

Prime Minister Narender Modi has a vision of a digital India, for the benefit of India and now, we all are looking forward to reaping the benefits of digitalisation. This campaign focuses on the digital literacy, online activities and many other digital facilities to make the life of an individual easy.

The insurance industry needs digitization in a very necessary manner. One has to make claims for the damage and loss that is caused by natural calamities to ever-changing consumer behavior in the insurance industry. Without adapting digitalisation it is very hard to make up to this challenge smoothly. So, the insurance industry is standing at a transformative stage at present, and now from the public buying insurance to making a claim, all methods have changed. The insurance business is one of the most competitive industries and faces multiple challenges on daily basis.

These challenges are not just caused by changing customer expectations and behavior or by the advent of ‘disruptive’ organisations from outside the industry, although that is a growing concern for quite some time now as well. The traditional and initial method of selling insurance products was that the sales executive used to walk door – to door.

An individual who is illiterate used to find the insurance-related query and documents so complex that they avoided the insurance policies. So, people preferred to buy an insurance plan that was recommended by someone instead of researching the best insurance plan that was available for them in the market as per the requirement.

But, digitalisation is the solution to all the problems. As India is progressing towards digitalization, the scenario of Insurance is changing. People can look easily for the insurance plans online, compare, research, and buy the insurance plan online.

Now a day’s customers are pressing for change. They now expect their insurers to offer them simple, transparent and flexible products and services, that are not only easy to understand but it should also cover all the fields of requirement and one can buy it, all online. And companies have begun to respond to it in the form of digitalisation. Now the digitalization means more than cool and convenient apps for the consumers, one looks at it as a force that will touch and reshape the very core of their business.

Nowadays people prefer to transact online as much as possible. In the insurance sector, it was much needed as it not only offers security in the life of hustle bustle but it also offers various investments. Online Sales, Direct Marketing, and Outsourcing activities are allowed and it covers most of the areas where an aggregator could add value to the customer and to the insurer. Some of the benefits of digitisation in the insurance sector are as follows:

  1. Convenience- There is nothing better than taking care of your loved ones in every possible manner. There are many insurance products that one can search online, in a convenient and less time-consuming manner. One can sit back at their workplace or cozy couch and buy the insurance policy as per their requirement.
  2. Less paperwork: Policyholder can avoid the confusing paperwork for the insurance policy. As insurance is a legal matter, so it is supposed to hold a great amount of paperwork initially and at the end. But, with the digitalisation of insurance policies, one doesn’t have to go through the tedious documentation process. Customers can easily avail those documents that can be shared and saved online.
  3. Hassle free claim settlement: Rough claim settlement is one of the worst nightmares a customer can have. The main problem that arises during the insurance claims is incorrect or non-availability of documents. But, with digitalisation of the insurance sector, this problem can be eliminated as all documents are saved online and are accessible for both the insurance provider and the policyholder; hence it will result in a smooth claim settlement.

Conclusion

So, digitisation is very important is the Insurance sector. One can easily access all the insurance related information, documents and take control of all the data related to insurance.

(Disclaimer: This write-up has been contributed by Naval Goel, CEO and Founder of www.policyx.com)

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