The role of technology in optimising life insurance distribution in India
Authored by Sandeep Mishra, Chief Distribution Officer, Bharti AXA Life Insurance
In the past few years, the life insurance industry in India has witnessed a remarkable transformation thanks to the integration of technology. One can safely say that technology is no longer vertical but horizontal today. Technological advancements have not only enhanced the distribution model but have also empowered insurers to provide a more efficient and customer-centric landscape. Let`s understand the crucial role technology has played in optimising distribution.
Enhanced Distribution Model through Streamlined and Faster Processes
Traditionally, the life insurance distribution process was time-consuming and paper-intensive, often causing delays and inconvenience for both insurers and customers. However, with the advent of technology, these hurdles have been significantly minimised. Insurers now leverage cutting-edge software systems and automation tools to streamline their operations, resulting in seamless customer onboarding, faster policy issuance, and smoother claim settlements.
One key aspect is the digitization of documentation and data management. Earlier, the sales agents used to meet customers multiple times and manually collect various documents. But through electronic verification and digital signatures, especially in the onboarding process, it has become faster, reducing the time taken to approve and issue policies. Nowadays, insurance companies have integrated with various account aggregators and India Stack (Aadhaar Card, NSDL, EKYC, CKYC, etc.). This has helped to pre-fill customer information, thereby leading to a faster policy issuance TAT and ensuring a minimal documentation process. This has further minimised the customer’s efforts in filling out all the fields in the customer journey.
Moreover, technology-driven underwriting processes enable insurers to assess risks more accurately and efficiently, allowing them to offer personalised coverage and competitive premiums.
Additionally, the integration of artificial intelligence (AI) and machine learning algorithms has revolutionised the way insurers identify potential customers. Analysing customer behaviour and preferences helps target the right audience with relevant products, thereby optimising their distribution efforts.
Technology Empowering Insurers to Enhance Customer Experience and Reach a Broader Audience
The digital revolution has placed the power of choice in the hands of customers, and insurance companies have been quick to adapt to this paradigm shift. Technology has enabled insurers to provide a seamless customer experience, right from the moment of inquiry to policy servicing and claim settlements.
User-friendly mobile applications and web portals offer customers the convenience of browsing and comparing various insurance products and making purchases online. The customer today can log in to the website, access his policy, or avail the services via a mobile app anytime, anywhere, as per his or her convenience.
Insurance companies have launched a suite of mobile and web apps for their distributed workforce that enables them to digitally perform critical business functions. This helps with seller lifecycle management with digital recruitment, learning management, and Performance Management.
The companies are further leveraging WhatsApp-based video verification, which helps in pre-issuance verification checks in less than 5 minutes, which customers can complete at their convenience.
More Efficient and Customer-Centric Landscape
The infusion of technology has transformed the life insurance landscape in India into a more customer-centric domain. Access to vast amounts of data enables insurers to gain valuable insights into customer behaviour, market trends, and product performance. This allows them to continually improve their offerings, tailor products to meet customer needs, and stay ahead in a highly competitive market.
Furthermore, technology has facilitated the development of innovative distribution channels. Insurtech start-ups have emerged, disrupting traditional distribution models and catering to underserved segments of the population. Mobile-based microinsurance and pay-as-you-go policies have gained popularity in recent times.
In conclusion, technology has played a pivotal role in optimising life insurance distribution in India. Streamlined processes have significantly reduced turnaround times, benefiting both insurers and customers. As technology continues to evolve, it will undoubtedly open new avenues for insurers to further enhance their distribution channels and better serve the diverse needs of their customers.
Disclaimer: The opinions expressed above are personal and may not reflect the views of DSIJ.