According to a report that was prepared jointly by British professional firm Ernst and Young and the Industry Camber, insurance in India has been literally transformed from being a seller’s market into a digitally-driven buyer’s market. Technology has powered a new wave of change for the insurance industry of India with the customer at the center of the digital transformation across the value chain.
The Internet of Things will play a crucial role in assessing and pricing risk of loss because it has the capability to replicate human behavior and execute non-judgmental sequence of activities. This will help the insurance providers in automating their client service activities. Insurance providers who are working in collaboration with third party data service providers can create uniformed strategies and policy related decisions for fraud monitoring and risk management.
Ecommerce platforms has allowed for greater customization in product and pricing so that targeted marketing can be more engaging and interesting to consumers. However, according to the insurance industry chamber, insurance in India is relatively slow if compared to financial services that have adopted new technology propositions for their business strategies.
On the other hand, the drivers of insurance business are fast changing with several innovations smoothly blending in the ecosystem of insurance. Innovations can be found in insurance products, distribution, technology and the basic ways with which business is being done. Technology and digitization have played key roles in the transformation. With the rapidly increasing population and changes in demographics, insurance providers and their intermediaries have to apply innovations to stay relevant.
Another possible challenge that insurers have to deal with is the emergence of dual stakeholders in every taxable supply of service. Aside from dealing with central service tax for the pan-India operations, insurance providers have to deal with 38 more taxes.
It is important for insurance providers to gain online presence because more and more people are using the internet to search for insurance products. One of the insurance marketing tips suggested by experts is content marketing to provide consumers will relevant and fresh information on insurance. Having a solid content marketing strategy can provide long term benefits for the business.