Across industries, the focus is shifting from a product driven approach to customer driven strategies and the insurance industry is no exception. Transaction security, technology compatibility, data privacy, round-the-clock services, customised products are some of the areas where emerging technologies are becoming an enabler for insurance players as well as customers.
Talking about how technology is shaping the insurance sector, Prashant Tripathy, MD & CEO, Max Life Insurance Company, the country’s largest non-bank promoted private life insurer, says, “Technology advancements are happening in the general insurance space rapidly, as more and more digital-first companies are coming in. The types of products being created are smaller and customised. Even the distribution channel of policy is being issued, claims are being handled differently and data analytics which goes behind in every transaction is very different. It will continue to expand and go through another forms of insurance as well. Despite the explosion of smartphones in the country, insurance adoption through apps is yet to pick steam.”
Tripathy believes that technology is an enabler and it will make things better for customers, reduce cost of insurance and cost of operation and give higher levels of options for the insurance company and customers.
“I think technology will spur the growth of unmet demands and will make current processes far more efficient and it will be a win-win for both, insurance companies and customers. Having said, there is lot to be done and achieved in terms of real value addition and sales process, thereby technology will play an enabling role,” says Tripathy.
While emphasising on how technology, data analytics and AI will make the insurance space more productive and efficient, Tripathy also cautioned against losing the personal touch. While technology can make it much more efficient and help in bringing better products, it is the deeper engagement via personal touch that will help in customer base growth and retention. Given the growth in the number of internet users and that of smart phones, it can safely be assumed that insurance offerings will change.
Digitisation is one of the top five agendas of Max Life Insurance. More than investment, the company looks at technology strategically.
“We are a digital organisation and technology is core – be it our distribution, e-commerce, customer services, employees and collaborations. The objective is two folds; driving changes at multiple areas, be it reducing turnaround times, saving cost, expansion and conversion. Today, 25 per cent of our customers come from the digital door. We see improvements in our processes year-on-year. Moreover, at any point of time, we have 4-5 technology tools either being readied or are on the cusp of launch,” adds Tripathy.
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