The Confederation of Indian Industry (CII), jointly with PricewaterhouseCoopers (PwC) released a report on "Evolving Considerations for the Indian Insurance Industry", specifically stressing on the direction the industry needs to take with regard to products, distribution, fraud management and broadening their investment horizon.
The report stressed on the need for simplification of advertised products ("One Need, One Product"), specifically in the areas of policy policy phrasing and benefits. They have also advised to streamline the application and claim process across the board. This, would in turn lead to uniformity in customer expectations so that they can quickly focus on the product that serves their needs.
The strongest rap for the industry seems to have been reserved for the area of digitisation. "Global average investment in digital technologies has increased over the years, while the insurance industry in India is lagging, both in its level of digitisation and its ability to realise financial returns on its digital investments," they said.
With a rise in the use of smart phones and the the progressive implementation of the Digital India campaign, the new generation of insurers is conversant and comfortable with use of technology. This, the report says, is already a significant impetus for the insurance industry to leverage these low-cost digital distribution channels for both sales and service, thus deepening their market penetration.
While on the topic of digitisation, the report urges the industry to take advantage of the staggering advancements in data mining and aligning themselves suitably. This will help them to cater to new-age customers and also bring sharper focus to their investment strategies.
CII also added a note of caution regarding the trend of online fraud rampant in the digital world. The industry, the report says, must invest in technological infrastructure and stronger processes to keep up with the increasingly innovative methods of frauds.
The report provides plenty of food for thought for the Indian insurance industry as they enter an increasingly digital world.
Source: Economic Times
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