Looking ahead to 2022, there are some key post-COVID-19 InsurTech trends in India that businesses and brands cannot afford to miss.
The insurance sector in India is at a crucial juncture. On the one hand, it is a vital industry for the country’s economic development. On the other hand, its market penetration is very low. The insurance penetration in India is 3.7% of the GDP while the world average is 6.31% for the year 2020.
The insurance sector in India is evolving at a rapid pace after the pandemic, with new technologies and innovations being used to offer customers better and easier insurance solutions. One of the biggest trends in this space is InsurTech, which is a smart combination of insurance and technology.
InsurTech is paving the way for the deployment of technology innovations to offer innovative, easy, insurance solutions to customers. Some of the popular InsurTech trends in India include the use of AI and machine learning to underwrite policies, the use of chatbots and digital assistants to provide customer service, and the use of blockchain to streamline the claims process.
While the COVID-19 pandemic has created numerous challenges for the healthcare and insurtech industries. One of the biggest challenges is the lack of seamless access to patient health records. Pandemic has brought a huge shift in InsurTech trend in India due to the increasing understanding of the importance of insurance amidst the current pandemic.
With the COVID-19 pandemic still raging on, the need for insurance policies has only increased in India. According to a recent survey conducted by Swiss Re Group, a leading reinsurance provider, 39% and 63% of Indians, respectively, now consider life and health insurance policies highly critical to have. This trend is only expected to rise in the coming months.
Let’s check out the five post-COVID-19 InsurTech trends
1. Zero Contact Digital Insurance Solutions
After the pandemic, the Insurance industry in India is currently undergoing a digital transformation, with customers increasingly looking for contactless, completely digitized solutions. Post COVID-19 Insurtech trends in India have been accelerated, as customers seek to minimize physical contact and avoid potential health risks.
InsurTech companies are leading the way in providing innovative digital solutions that meet customer needs. From policy browsing and distribution to customer onboarding and claims inspections, InsurTech companies are providing end-to-end digital solutions that are changing the way the insurance industry operates.
Premium payments are another area where InsurTech is making a big impact. In the past, customers had to visit insurance offices or bank branches to make premium payments. However, with the advent of digital payments, customers can now make premium payments online, using their mobile phones or computers. This is a major convenience for customers and is helping to drive the uptake of insurance products.
The InsurTech revolution is benefiting both customers and insurance companies. Customers are getting access to convenient, digitized solutions that meet their needs, while insurance companies can reduce costs and improve efficiency.
2. Personalized Insurance Products
The Indian insurance industry is one of the most diverse in the world, with customers across regions, religions, professions, ages, genders, etc. This diversity presents a challenge for InsurTech players, who need to adopt a ‘segment of one model to succeed.
This model involves using emerging technologies like AI, ML, and advanced data & analytics to predict each customer’s purchase intent. This information can then be used to offer end-to-end customized products and services.
InsurTech players that can successfully adopt this model will be the leaders in the industry.
They will be able to provide their customers with the best possible experience and meet their needs in a personalized way making a big difference, and further building a relationship with the customer which can be nourished for years to come.
In the past few months, the world has been turned upside down by the Covid-19 pandemic. InsurTech firms have been quick to seize the opportunity, and they have been able to showcase their value-add benefits and bundled offers. The pandemic has also driven greater levels of significance of policy coverage, and this is something that InsurTech firms should look to capitalize on.
So, if you’re an InsurTech firm, now is the time to seize the opportunity and showcase your products and services. The world is looking for new and innovative solutions, and you have the chance to be at the forefront of the industry.
3. The Rise in Demand for Bite-Sized Insurance Solutions
As the world around us changes at an increasing pace, so do our insurance needs. No longer are traditional insurance products sufficient to cater to our needs – we now require specialized, bite-sized insurance solutions that can address specific risks.
In India, this demand is being met by a new wave of InsurTech startups that are offering innovative, pocket-friendly insurance products that cover a wide range of risks.
Mobile screen damage insurance, house roof insurance, malaria insurance, covid19 insurance, pet insurance, dengue insurance, and many more – are just some of the products that are seeing huge demand, especially during COVID-19.
What is driving this demand?
For one, traditional insurance products are becoming increasingly irrelevant in today’s world. They are often too broad in scope and don’t address specific risks that consumers are exposed to.
Secondly, traditional insurance products are also becoming increasingly unaffordable. In a world where risks are constantly changing and increasing, few can afford the high premiums that are required to adequately cover themselves.
This is where InsurTech startups come in. By offering specialized, bite-sized insurance products that are much more affordable, they can address the specific needs of the Indian population.
What are the benefits of these products?
Bite-sized insurance products offer several advantages over traditional insurance products.
First, they are much more affordable. This makes them accessible to a wider range of people, including those who are at the lower end of the income spectrum.
Second, they are much more tailored to specific risks. This means that they can offer higher levels of protection
InsurTech companies that can deploy data and analytics expertly to create customer-friendly bite-sized solutions based on their preferences will be the clear winners.
4. Increase in Demand for Flexible Premium Models
After the pandemic crisis, it is no longer feasible for insurance companies to adopt a cost-plus premium pricing model. Instead, there is a need for innovative and flexible premium models that offer increased value transparency to customers.
InsurTech players are using various technologies, such as big data and advanced analytics, to design customer-need-based, usage-based premium models. These models help to estimate customer willingness to pay accurately and thus enable insurance companies to price their products and services more effectively.
Some of the key trends in the Indian InsurTech space include the use of artificial intelligence (AI) and machine learning (ML) to predict customer behavior, the adoption of blockchain technology to streamline claims processing, and the use of data science to develop personalized products.
With the help of these innovative technologies, insurance companies will not only be able to provide better value to their customers and stay ahead of the competition but also determine fraudulent customers and take necessary actions in time.
5. Omni-Channel Customer Experience
The insurance sector has seen a lot of changes in the last few years, with the advent of new technology and the need for more customer engagement. In the post-Covid world, it is even more important for insurers to focus on providing a good customer experience across all channels.
One of the biggest trends in InsurTech is the use of emerging technologies to provide a more connected and seamless experience for customers. This is especially important in the post-Covid world where there is a greater need for customer engagement.
InsurTech players that are able to provide a good customer experience across all channels and insurance processes will be the leaders in the post-Covid world and beyond.