Insurance Sector News: Technology has eliminated the need for customers to travel long distances to get products or services. Digital payments and especially UPI have revolutionized the field of payment and shopping transactions.
Casparus Kromhout
New Delhi: Due to high internet usage and demand for smartphones, acceptance of online payment tools along with fintech systems, e-health and e-learning platforms has increased.
With the ‘Digital India’ initiative of the Central Government, digital technology has expanded and its reach has increased. This is especially seen in rural areas and in the insurance segment, where turnaround time is a huge factor for the insured.
Digital revolution has taken place in the country with 75 crore smartphone users. In such a situation, insurance service providers are preparing themselves in such a way that people can get their insurance done in just a few taps on the phone.
For example, quick and easy video MER (Medical Examination Report) for underwriting has significantly reduced the time taken to issue TATs. Similarly, automated processes and data analytics are proactively meeting customer needs and improving Services TAT.
Technology has eliminated the need for customers to travel long distances to get products or services. Digital payments and especially UPI have revolutionized the field of payment and shopping transactions. It has eliminated the need for customers to be physically present at the time of sale or service.
Technology in the field of insurance has made a positive impact on many aspects related to the insurance company. Life insurance companies have created several technology-based processes for easy settlement of claims.
These technology interventions have led to various processes becoming part of a robust policy:
eKYC – A Glorious Achievement
The approval of e-KYC by UIDAI for insurance companies is crucial for prompt and secure on-boarding of customers. This has been an important step in terms of policy aggregation, so that insurance agents do not have to do a lot of paperwork and this work is done easily through simple options like uploading a picture and OTP.
Finding a certified eKYC agency is a difficult task; Partnering with any one greatly increases your chances of getting the cover. This is also seen in rural areas where people have basic documents like Aadhaar.
ECS mandate made easy
Achieving a good persistence ratio depends on whether the technology enables users to pay the renewal premium easily. Linking the bank account with the smartphone has definitely given a boost to the Electronic Clearing Service (ECS), which enables auto-debit of the premium conveniently and without any charges. This makes the biggest difference in policy continuance in rural markets, especially in areas where there are no banks or insurance companies.
Claims and Other Services
There has been a big change in the response pattern related to claims in rural areas. Technology has increased speed and clarity and if all these are combined, with their help companies are able to focus more and their efforts have become more empathetic.
The scope for use of local languages on digital platforms has eliminated many barriers to reaching customers. For example, in Shriram Life Insurance, non-early claims are settled in 12 hours assuming that half the claims come from rural areas.
With the advent of technology, customers can easily make nominee changes and actively regulate their policies according to their needs, without the need for a third person. Despite the scope for offering a variety of value added services, it acts as a touchpoint for major regulatory changes.
Conclusion
Various digital interventions such as App Technology, Chatbots, Voicebots, Artificial Intelligence, Virtual BoTs, Sales Force Software help customers in rural and semi-urban India to access and avail insurance products. Very soon the customer experience in rural India will be similar to that of people in big cities of India.
