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    Insurance Businesses: Accelerating Digital Transformation During COVID-19

    Insurance Businesses: Accelerating Digital Transformation During COVID-19

    Insurance Businesses: Accelerating Digital Transformation During COVID-19
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    By CNBCTV18.com  IST (Updated)

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    Insurance companies across India are trying to make the most of the COVID situation to promote their businesses and cater to the general welfare of the public.

    With remote collaboration and work from home fast becoming the "new normal", organisations across sectors are brainstorming the next steps with new products and features and attempting to course-correct via digital transformation.
    One such sector whose role is crucial in these unprecedented times of crisis is the insurance industry, set to be valued at $280 billion by FY2020 in India.
    Boardroom Dialogues, a virtual roundtable brought to you by CNBC TV18.com and AWS, looks at what the eminent industry leaders have to say about business continuity.
    COVID-19: The Catalyst for Change
    Puneet Chandok, President of Commercial Sales, India and SAARC, AISPL, says, ‘’We are seeing change at a scale like never before, in terms of consumer preferences and how businesses respond to them. Technology and cloud are a big part of this change’’.
    He emphasises three trends that insurance companies have noticed:
    • "Business resilience" has acquired a new meaning in today's times: every business model has undergone a reset, and new ones are being developed.
    • Digital technology and cloud are no longer options: companies with a robust digital infrastructure are currently the ones to come out on top.
    • Businesses are using this opportunity to step back and focus on innovation: new digital use-cases, new customer journey maps, etc.
    •  
      Key Trends in the Insurance Sector
      Ashish Dhawan, Director and Head, Enterprise Business, AISPL, highlights these trends in the insurance sector:
      • Behavioural Policy and Pricing: Using IoT sensors to provide individual client information. For example, safer drivers pay lesser for auto insurance.
      • Customer Experience Personalisation: Leveraging AI and automation through chatbots that collect social and geographical data to send targeted messages.
      • Faster Customised Claims Settlements: Implementing online interfaces to settle claims faster while also preventing fraud.
      •  
        He mentions several aspects of insurance where AI and ML will be used, ‘’We shall also see AI, ML, IoT, and digital technology used in pricing, real-time dynamic behavioural models, underwriting, risk assessment, claims handling, policyholder interaction, and fraud management with forensic capabilities’’.
        • Bajaj Allianz became the first Indian company to move its administration to a public cloud.
        • This move enabled 80% of all servicing to happen through digital assets and decreased customer complaints by 90%.
        • They also targeted customers' latent needs by introducing apps for doctor-patient interaction and contact tracing (before the advent of Aarogya Setu).
        •  
          Sustainable Cost Advantages
          ‘’We will continue to invest in technology spaces that will allow us to leverage the new normal to our advantage’’, says Kirti Patil, Executive VP and COO, Kotak Life Insurance.
          • There is a shift in investment patterns, an increase in the speed of approval cycles, use-case acceptance, and business buying.
          • She elaborates on investing in a digital learning platform to upskill their employees during the pandemic.
          • In short, a good use-case with potential value is worth investing in.
          •  
            Trends in Mindset Shifts
            Insurance firms have to step up the velocity of operations to align with the general public's mindset. Manu Lavanya, COO, Max Life Insurance, says, ‘’The overall need for staying protected has gone up significantly. So, insurance companies are thinking about how to launch new products that revolve around COVID’’.
            • Companies must incorporate wellness and protection into their products to find a more extensive consumer base.
            • A good example is combining the government's COVID Suraksha plan and including it in insurance policies.
            •  
              In Closing
              Insurance companies across India are trying to make the most of the COVID situation to promote their businesses and cater to the general welfare of the public. With these innovations, technologies, and strategies, they have a shot at sustaining themselves in the long run.
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