This blog will shed some light on the key shifts happening in the life insurance space locally with insights from our on-ground industry interactions.
Rise of Online Insurance Platforms
Digital insurance platforms are simplifying the entire policy purchase process. Trusted insurance marketplaces are making it easier for customers to compare various term insurance plans online and buy the most suitable option. These online platforms provide support throughout and eliminate dependency on agents. From getting custom quotes to applying, document submission, and issuing a policy, every step can be done digitally and transparently through reputed insurance web aggregators.
Increasing Flexibility of Life Insurance Plans
Life insurance providers understand that buyers have diverse budgets and needs. So, insurers are launching highly flexible plans that allow customisation according to individual preferences. A robust term insurance calculator now enables increasing or decreasing the coverage benefits during the policy tenure to align with life milestones. Some insurers also give ‘premium holiday’ options to skip annual payments for a specific period when going through financial difficulties without impacting policy benefits. This increased flexibility makes life insurance adaptable to unique needs.
Simplified Claim Settlement Process
The life insurance claim process used to be tedious, with extensive paperwork and prolonged turnaround times. However, insurance regulators are implementing new rules to expedite valid claims processing and disbursal. Leading private insurers have also digitised records and communicated claim statuses via text messages for transparency. The procedure is now more straightforward, with options to file e-claims online by submitting scanned documents as proof quickly. Claimants can also track their status in real time and get assistance from the provider’s customer support team.
Growing Focus on Early Claim Payment
Settling life insurance claims at the earliest for beneficiaries dealing with the loss of loved ones is crucial. Most life insurers today provide interim fund advance payment while processing death benefit claims to offer timely financial support. Policyholders with severe critical illnesses can also submit requests for early access to part payment of the sum assured amount through new programmes.
Using Analytics for Personalised Premiums
Earlier, life insurance premium rates were based on broad age groups. But now, technology is enabling more personalisation, leveraging in-depth data analytics. Insurers can assess customer lifestyles, health markers and other risk factors to offer customised premiums explicitly aligned to an individual’s profile. It brings more fairness so people with healthier lifestyles and lower risks pay lower premiums over a lifetime. Analytics powered by AI and machine learning takes customisation to the next level.
Focus on Health and Wellness
The last few years have increased India’s focus on health, fitness and wellness. Aligning with this trend, life insurers are introducing value-added wellness-linked incentives on policies. Certain insurance plans now provide premium discounts or increase coverage benefits if policyholders partake in health checkups yearly or have healthy diagnostic test results indicating lower risks. There are also redeemable health rewards that can be earned and encashed for expenses like doctor consults, pharmacy costs, etc. This fosters better health maintenance among buyers.
Adoption of e-Policy Documents
Digitisation enables instant provisioning of life insurance policy documents in electronic format through email or secure online accounts. This e-policy option does away with legacy physical documents that could get misplaced. It facilitates easy access to records anytime needed through digital document lockers integrated with insurers’ systems. Some companies also explore blockchain solutions to store encrypted policy documents, bringing greater transparency and security.
Data Privacy and Security Improvements
Customers are increasingly concerned about the privacy and security of sensitive personal information collected by insurers. Responding responsibly, life insurance providers in India are revamping their IT infrastructure and employing advanced security controls like encryption technologies, multi-factor authentication, masking display data fields, stringent internal data access policies with audit trails, etc. Rigorous testing for system vulnerabilities by ethical hackers and disaster recovery mechanisms are also undertaken to minimise risks of data theft or system outages – building greater trust.
Offering Online Policy Services
Managing the life insurance cost is getting more convenient with online servicing platforms offered by insurance companies. Policyholders can access a secure web portal or mobile app to view policy status in real-time, pay renewal premiums digitally, make changes in address/nominees or contact details, download documents, raise requests/complaints and more without relying on intermediaries. This self-service route brings transparency and responsiveness.
Conclusion
To conclude, India’s life insurance outlook seems optimistic in 2024, with insurers focusing extensively on protection solutions combined with digitisation, personalisation through analytics use, faster claims support and integration of wellness-linked incentives. As you make insurance purchase decisions for your family this year, consider these key trends presently shaping the sector’s offerings to buyers like yourself. Evaluate products on flexibility, transparency, responsiveness and value-added benefits before deciding.
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