Insurance industry embracing digitalisation, AI: Mint BFSI Summit

India’s insurance industry is actively embracing digitalisation as it streamlines its claims processes, top industry experts said at the . “Despite the prevailing external perception that the insurance sector remains tethered to traditional pen-and-paper methods, and ongoing discussions about incorporating digitalisation, AI, blockchain, and other innovations, the industry has, in fact, wholeheartedly embraced these technologies,” said Anuj Tyagi, joint managing director at HDFC Ergo general Insurance. “An illustrative example is the swift processing of straight-through processing claims in a cashless scenario, averaging just 28 minutes—an accomplishment deemed implausible a few years ago,” he said in a discussion on ‘ ’.

The health insurance sector, too, is actively working on integrating their digital channels with the open-source National Health Claim Exchange platform, said Prasun Sikdar, managing director and chief executive of ManipalCigna Health Insurance Co. Ltd. This, he said, would ensure complete digitalisation and significantly decrease the time required for a patient to secure discharge at hospitals.

Sikdar also said the health insurance industry disbursed nearly 90,000 crore in claims last year, with a substantial portion— 30,000 crore—dedicated to covid-related claims. “Remarkably, the industry managed this without seeking external assistance,” he said, adding, “The estimated profitability for the next five years is projected to surpass 30,000 crore for the entire health insurance sector, dispelling any misconceptions about the industry’s commitment to fulfilling claims. ” Adding to this, Tyagi said the industry has proactively implemented numerous measures to simplify the claims process, particularly by using digital platforms such as WhatsApp.

“These channels are being leveraged to create a remarkable customer experience, enabling activities such as launching claims and checking policy status in multiple languages. . .

the industry is expected to undergo significant transformation in the coming years as more players adopt these innovations,” he said. On the notion of persistent delays in customers obtaining or surrendering their claims, Mahesh Balasubramanian, managing director of Kotak Mahindra Life Insurance, said the industry had made notable improvements in this aspect. “When a customer decides to surrender, efforts are made to engage in a digital dialogue, steering away from the traditional home branch visits,” he said.

“The objective is to understand the customer’s reasons and persuade them to reconsider, highlighting the long-term benefits. Many times, through these digital conversations, customers are enlightened about the advantages of continuing their policy, leading to successful retention. ” On the prevalent trust deficit in the industry, Mahavir Chopra, founder of insurance platform Beshak.

org, said insurers still relied on customers for data as they continued to grapple with the task of capturing data independently “In the realm of messaging, there’s a discernible gap between customer expectations and what insurers currently deliver. There is also a systemic gap in handling complaints,” he said. “There’s a need to address and streamline these gaps in data, communication, and complaint resolution across the industry.

” Concluding the discussion, Karthi Purushothaman, partner at Mckinsey & Co. , said it was crucial to acknowledge that in India merely 5% of insurance policies were sourced digitally. “The industry predominantly operates through intermediaries, with only 27% of premiums sold through agents, in contrast to countries like Thailand or Korea where the figure stands at around 40%,” he said.

“Efforts are underway to empower agents with digital tools and technology. This involves leveraging generative AI tools, scripting, and simplifying policy language for enhanced customer understanding. ” Livemint tops charts as the fastest growing news website in the world to know more.

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