What is the Future of Insurance sector in India?
By the year 2020, a report put forward by the BCG states that digital insurance in India will expand by 2,000% compared to its existing state. It also shows that 75% of insurance policies will be made available for consumption using digital channels in India.
All the predictions made in the above statements were supported by consumer trend analysis performed by Google. The trend showed that there is a growth of 450% among the users who are searching for insurance policies and other research on the internet, since 2008. On the other hand, the Insurance industry grew by more than 600% since 2012.
This was all about the past of the Insurance industry in India. Now let us look at what is the future of the Insurance industry in India. It is very obvious that the future of any industry in India and at the global level has to align with the technological developments which are taking place. Referring to these developments, I am talking about the digital transformation taking place in the Insurance industry.
Going digital will help the Insurance industry in the following ways;
• They will be able to reposition themselves and directly reach out to the customers after the creation of this ecosystem. But, this benefit can be acquired only and only if they get rid of one traditional obstacle in this industry – lack of awareness with respect to risk management.
• The next could be a chance to improve their revenue income by getting more clients on-board using the network generated online. Besides that, the Insurance firms will also become capable of selling more number of risk management products to their existing clients.
• Another benefit is in terms of the drastic reduction in operating and distribution costs. But, on the same page, implementation and acceptance of this digital infrastructure might become a challenging task for the insurers.
So, in the near future, we can get to see the Insurance companies investing more and more in the non-life segment and tapping into the digital space by incorporating evolving technology. These companies will surely look after exhaustive reach of products, processes, and channels by going digital or they might club it all together with the traditional methods of generating business in the Insurance industry. Stay tuned to Cognigix as we are about to transform this industry shortly!
To know more about our digital learning solutions, click here.
Author: Miheer Patil
Editor: Sandip Shrotri