Indian General Insurance Industry witnessed some path-breaking concepts in the year 2017. These concepts gave insurers a glimpse of what is expected from them in the future. In 2018, insurance companies will have a plan in place based on last year’s advancements and will look to execute it to perfection.
Listed below are 8 things that can be expected from Indian General Insurance Industry in the year 2018.
Net banking, online wallets, cashback, and other digital terminologies are not alien to Indian customers anymore. The foundation for a cashless economy was laid in 2016-17. Digitization will change gears, speed-up in 2018, and will positively impact insurance services. Digital distribution will transcend geographical boundaries and enable consumers in tier 1, 2, and 3 cities to avail insurance easily.
Rise of InsurTech
Customer acquisition, engagement, and retention will depend on an insurance company’s ability to integrate technology in their processes. InsurTech will move out of FinTech’s shadows and gain an independent identity. Investment in relevant technology will reap benefits in the long run for insurance companies.
Online customers are used to the user-friendly e-commerce environment. Purchasing a t-shirt online isn’t a tedious task anymore. Customers expect similar level of simplicity while purchasing insurance. Simple product offerings and a clutter-free interface will aid a potential customer’s purchase journey. The entire insurance cycle comprising of researching, buying, renewing, and claiming will be made extremely convenient.
Internet of Things (IoT)
IoT is a network of physical objects embedded with technology that enables them to share data. The insurance industry will benefit from its application in 2018 by understanding consumers effectively. For example, telematics devices installed in vehicles can give insights into a person’s driving pattern. This data can be analyzed to gauge the risk profile, and charge insurance premium accordingly.
Big Data & Analytics
Customer behavior can be predicted with the help of Big Data and Analytics. Precise customer profiling will lead to productive insights. Not only will it aid in acquiring new customers in the new year but also facilitate cross-selling of products. Customized marketing communication can be targeted towards the niche audience narrowed down due to Big Data & Analytics.
In simple words, blockchain technology enables structured record keeping in a secure manner. It will ensure transparency and fraud detection. This self-managed technology reduces redundancy and increases efficiency. Still in its nascent stage, insurers would like to explore this technology in 2018.
Conventional underwriting processes will be revamped to underwrite risks efficiently. By leveraging technology, insurers will be in a position to underwrite risks more accurately. They can move from generic pricing to personalized pricing.
Popular social media platforms have gained momentum and new ones are attracting an enthusiastic audience. New customers can be acquired via targeted and innovative social media campaigns. Social media platforms are a dynamic marketplace where insurance brands can communicate with their audience in an engaging manner.
A Prosperous 2018
The above-mentioned pointers are not new for insurers. They have heard of some, invested in some, experimented with some, and stayed away from some in the recent past. In 2018, insurers will look to make the most of the technological advancements and make it a prosperous year.
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