Securing a bright future for the life insurance industry

0

The next decade holds great promise for the life insurance industry. The increase in the size of the world’s middle class population, rising incomes, inflation in medical and health care and the increased need for protection against mortality have become tailwinds for the industry. life insurance. Consumer awareness continues to increase, as do business volumes.

Since the start of the year in August 2021, the sector has grown by 17% in terms of annual premium equivalent (APE) for new individual business and the private sector has grown by 31% – and this no. is just the start. The future is changing rapidly with ever-changing technologies continually changing business and social landscapes. The only way to prepare is to resort to relentless and disruptive innovations. As insurers, it is our responsibility to proactively drive the change we want to bring about.

Consumer expectations will pivot and our value propositions must follow. Are protection or pure term plans really vanilla offerings, or can we spice them up a bit? Is life insurance savings limited to building up a financial corpus, or can we also offer ecosystem solutions? Is the current buying journey appropriate or can we impress the customer by making it even easier?

Answering these questions by “thinking like a customer” will give us an incisive glimpse into how the industry will shape over the next decade. Here’s a look at what we can expect.

Vanilla is Passe

We need to spice up our product line to meet the needs of our customers. Generation Y and Generation Z need products that can adapt to their changing lifestyles; Small or contextual insurance interests them.

Imagine earning extra points for following a healthy lifestyle! Data from lifestyle apps, search engines, wearable devices, and other consumer devices provide valuable insight into customer habits that can help predict premiums. For example, fitness enthusiasts with a good exercise history may have to pay lower premiums than those with highly stressful jobs and difficult medical histories.

Basically 10 years from now I predict people will buy insurance for a handful of rupees which can potentially reduce further if the buyer is fitter than the “average Indian”. An insurance policy can also be activated or deactivated at will.

As bizarre as it may sound today, this seemingly large gap between “here and now” and “yesterday and there” will most likely be closed over the next few years.

An ecosystem against. A corpus

With the intention of offering customers a wider range of relevant products and services, many insurers are empowering themselves to facilitate end-to-end shopping experiences.

● If retirement is the financial goal, building an ecosystem with retirement homes, delivery services, hospitals and other relevant services will help an insurer deliver differentiated offers to its customers. Life insurers could offer 25 years in a retirement home, as well as adapted services, instead of paying annuities.

● If the financial goal is to ensure a child’s education, partnering with educational institutions, homes, packers and movers and other relevant services will help an insurer ensure that the customer’s goals are achieved.

Providing an ecosystem solution is currently hard to imagine, but that will change over time. It will also provide insurers with integration opportunities, and it shouldn’t surprise us if insurance companies invest in schools, retirement homes and the like for the foreseeable future.

KISS (Keep it Supremely Simple) for the client

The digital footprint is a reality. Financial health, medical health, social and political beliefs – everything has a digital track. There are nine billion devices connected to the Internet today, and in ten years that number will only increase. We have to put it all together and use it to make the customer’s life easier.

Documentation, health checks and underwriting can be done by leveraging the digital customer track – as soon as the customer agrees. Respecting security protocols and protecting customer privacy is a matter of course.

This is likely to lead to a productive role reversal. Instead of the client sharing the documents and insurers subsequently checking them, insurers would now collect the data needed to complete the application form, take out the policy and possibly issue it. The client simply needs to verify the truth of the facts and confirm the correctness.

The opportunities do not present themselves. We create them. There are endless possibilities for creating bespoke products that make sense to the consumer, enhance the shopping experience, and excite them. Imagine a hyper-personalized product that gives you peace of mind throughout your life.

Imagine protecting the certainties in your life by simply saying YES – isn’t that wonderful? Yes it is! Is this transition easy? No, this is not the case ! But again, is this transition impossible? Certainly not ! So what will we need to ensure a bright future for the industry and its customers? It needs inventions, innovations and relentless initiatives! The good news is that practitioners in the insurance industry recognize this.

Rushabh Gandhi

The author is the Deputy Managing Director of IndiaFirst Life Insurance Company Limited.


Source link

Leave A Reply

Your email address will not be published.