Future of Insurance: Rethink. Reengineer. Reboot.

Rushabh Gandhi, Deputy CEO, IndiaFirst Life Insurance Company Limited

One virus has changed our lives and our perspectives

It took just one microorganism to teach us two important things: Life is extremely unpredictable, and humans are surprisingly adaptable. Truly, the pandemic has changed the way we live.

From travel, work, shopping and even the way we breathe – everything has changed. Covid-19 has brought about visible shifts in consumer behaviour and thinking. Perspectives and priorities have changed. Awareness levels of our family members’ health and morbidity are at an all-time high. While sickness and bereavement are certainties in a universal sense, the way we approach it has changed. Consequently, it has also transformed our risk-taking appetite.

Apart from the Covid-19 triggers, there are existing and evolving macroeconomic and demographic factors, which make it imperative for us to plan ahead. Today, we are experiencing elevated awareness levels for insurance, especially as a risk minimisation tool. People are identifying with the role of insurance in preparing for life’s certainties.

There is no time like now

Life’s certainties include many milestones and events — school, graduation, first job, love, marriage, children, and beyond. Each certain event can have multiple dreams and aspirations linked to it and also has some real responsibilities. Insurance helps you to plan for those responsibilities with a focus on aging and inflation.

While providing for your family; securing your child’s future and planning your own retirement is equally important and needs astute planning. Whether you like it or not, there will come a day when you will cease to be a member of the workforce. Greying out of the workforce is a reality. By 2030, the global population of older people aged 60 and greater will see a growth of 50 per cent — from the current 900 million plus to 1.4 billion. Advanced medical facilities have led to higher life expectancy and more longevity. Having said that, aging also brings with it a complete package of needs and wants. Living costs, especially expenses towards health, are bound to increase, making it challenging for us to maintain our standard of living if we don’t plan ahead of time.

The cost of postponing planning for these certainties will be crippling in the long-term. Moreover, this is the youngest you will ever be. Therefore, the best time to buy suitable insurance product(s) for life’s certainties is NOW.

Multiple propositions, one click and advantage customer

So, now that you have decided to buy that insurance policy, we have more good news! What if we said that you can get a genuine, bespoke, hyper-personalised product designed to suit your requirements? Since you are unique, why should your insurance cover be any different? If you have the option of choosing from many a-la-carte dishes, would you still stick to a fixed menu? Flexibility and choice is nice to have, right? What if we told you that you can do this even while buying an insurance policy?

Thanks to digital enhancements and the easily accessible advanced digital technologies, you can easily select a suitable product. For instance, the slightly risk-averse can opt for a traditional endowment policy while those with a higher risk appetite can obtain a unit-linked plan. The former may provide a minimum guarantee plus bonus or a fully guaranteed amount, while the latter provides for a range of market-linked investment options.

Also Read | ‘Life Is Full of Certainties’ that need to be planned: Rushabh Gandhi, Deputy CEO, IndiaFirst Life Insurance Company Ltd

Insurance purchase and servicing – as simple as it gets!

India’s internet users are projected to increase from the current 670 million to 914 million by 2027. Insurers are leveraging the increased digital adoption for the customers’ advantage. Insurance companies today are going all out to better the customer experience at every touch point. Customers can get more information, better access to distribution, enhanced service levels and improved customisation. You have multiple benefits at your fingertips – contactless connect, transparency, immediate support via chat bots, self-service portals and information over easy mediums, including WhatsApp. Additionally, you can pay premiums from any part of the world and can take advantage of one-day claims settlement. The choices are endless!

When you thought this couldn’t get any better, it just did! Artificial Intelligence augments your digital footprint to potentially offer you more customised and targeted options through hyper-personalised products that are easy to understand and simple to buy. For example, like your credit score impacts your loan application, going forward, your health score may impact your policy premium. So how will your health score be calculated? Data transmitted by your wearables and your shopping history may be included while computing your health score. So, the next time you reach for your online grocery cart, you may be motivated to add more of healthy wholesome food rather than unhealthy junk food.

Take a decisive step

You have a commitment towards protecting certainties of life for your family and yourself. If you are still reading, you have already taken the first step towards provisioning for life’s certainties. Now, take a proactive step and buy a life insurance policy. That is the level of urgency and agility I would recommend customers to adopt. There is a whole new world waiting to be discovered.

Views Expressed By – Rushabh Gandhi, Deputy CEO, IndiaFirst Life Insurance Company Limited.

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