With Digital Transformation Insurers Creating New Business Models and Disruptive Offers for Customers

Today, every company is attempting to keep pace with the digital transformation, and the insurance sector is no excuse. The insurers are trying to harness powers of artificial intelligence (AI) to anticipate customer journeys, personalize pricing, assess risks, and offer real-time service to enhance the overall growth of the business.

Fuelled with powerful government strategies sponsored by a strong economy and higher disposable incomes, the insurance industry is unquestionably ready to observe acceleration in the coming years. With the Government-supported insurance schemes like Pradhan Mantri Suraksha Bima Yojana and Ayushman Bharat, a large scale of insurance penetration can likewise be seen in the rural areas.

At present the penetration is slow, yet with the utilization of technologies like Big Data, Cloud, Blockchain, Artificial Intelligence and Cognitive Computing the time isn’t far when industry’s development will be further accelerated.

As digital intelligence is progressively utilized into smartphones, cars, smartwatches, appliances, speakers, wearables, and so forth, the demand for usage-based insurance is also gaining momentum. The fitness trackers for life and health insurance, smart devices with security features in homeowner insurance, etc. has become the buzz word of today’s insurance industry. The insurers are leveraging the customer data to get a better insight of customer and thus offering products based on customer needs and requirements, in turn improving their businesses.

With the advent of technological advancement, there is a transformation in the healthcare sector too. Every stakeholder today has greater access to data and information. There are dedicated healthcare data companies that provide patient information and other records at a fee. With this data in hand, today people in the villages also have access to healthcare services. Technological advancement is definitely creating a wave in the healthcare sector from merely paying for sickness to creating preventive methodologies.

One such example is group personal accident cover for school children by Bajaj Allianz General Insurance. This insurance provides accident cover for children during their travel in the school bus. By using IoT, the location of the kids can be tracked through GPS and devices inserted in their ID cards. Not only this, but the insurance companies are also taking advantages of personal assistant devices like Amazon Echo and Alexa for improving their businesses. Aviva Life Insurance is the first life insurance company to make its debut on Alexa.

Whether this tech innovation is going to help the customers and the insurers in the long run, the time will tell. But one thing is for sure to make a difference the technology has to be used in the best possible way to gather and assess data and thus creating both customer and insurer oriented solutions in return.