India’s Leading BFSI & FinTech Companies 2024

[ INSURANCE SECTOR OVERVIEW ] India’s Leading BFSI and FinTech Companies 2024 22 INSURANCE GAME CHANGERS INCLUSIVE BFSI MODELS The use of digital technology is expected to make insurance industry more inclusive, available, and accessible to every household in the country. Insurance availability is still limited to larger towns and cities due to lack of awareness, limited distribution network and infrastructure to service claims. However, improved digital infrastructure, and the rise in mobile penetration and connectivity is expected to bridge this gap. Virtual sales offices will enable insurance companies to surpass the geographical barriers helping them to foray into tier 2 and tier 3 cities to reach every household. To this end, initiatives like Bima Vahak, and Bima Vistar will help in providing last mile connectivity for insurers. TECH TSUNAMI With increased integration of digital technology, insurance business will further move towards a hybrid model which will be a combination of physical and digital model. The sector will be leveraging AI and ML to make underwriting process more efficient and accurate. This will enable insurers to tailor products based on the customer’s risk profile. Moreover, the use of data analytics will help in data- driven decision making and product innovation. Insurtech segments like digital brokers, corporate insurance brokers, insurance SaaS, digital insurance underwriters and health clubs are expected to witness robust growth in the coming years. NEXT-GEN CUSTOMER EXPERIENCE Various paper-based processes like policy issuance, claim settlement, and pre-medical check-up amongst many other will be augmented with digital integration to ensure seamless customer experience. Further, there will be increased use of AI-powered chatbots and virtual assistance to instantly provide personalised customer service in claim management, renewal process and customer grievances. In the coming years, embedded insurance is set to grow notably. By seamlessly integrating insurance with the purchase of products or services, embedded insurance is set to elevate levels of convenience and personalization in the insurance space. CYBERSECURITY REVOLUTION Increased investments are expected in traditional core IT systems like policy and claims systems as well as in highly integrated enabling platforms such as agency portals, online policy applications and web & mobile based apps for filing claims. Insurers will require to enhance security tools and processes in these areas. REGULATORY SANDBOXES The insurance regulatory authority, IRDAI, is expected to step up its initiatives in line with digital revolution. With the help of technology, it is expected to develop new means to enhance customer experience by bringing in 100% cashless claim settlement through common empanelment and interoperability with hospitals. This will also help in detecting anomalies, suspicious activities and in turn in preventing frauds. Dun & Bradstreet