What are the top 3 Insurance trends that will define 2023?
- Technology as the key lever across all functions in the Insurance value chain— While some of this was adopted due to the pandemic, most insurers have now re-purposed their investments with technology now taking up a large share compared to earlier. With customers getting more demanding & competition being tougher, Technology is clearly standing out as the key differentiator between the leaders and the laggards. Technology investments not limited to just front-ends but also in the avenues of Sales Orchestration, UW, Claims, Analytics etc are picking up speed.
- Hyper-Personalisation for customer delight — Customers today are no longer excited by what their friends buy and need products and benefits personalized to their individual needs. This is leading to insurers scrambling their think tanks to design products, offer benefits that can be multi-selected to offer the best-fit plan. This is also becoming popular because of Insurance startups, who due to their nimble size and ops, are able to offer that far quickly and adapt to needs.
- “Protection” is the new kid in town — With the pandemic creating havoc, showing the old and the young that age doesnt matter, more and more people are choosing to start insurance with protection. Something that covers for a risk and not mainly investments. Whether in the form of Term Plans, Health Plans or Critical Illness covers, Protection is becoming important to all age groups across most insurance markets.
The future rides on the pillars of Relationship and Trust. Both of these take time and regular investments by doing the right set of activities at the right time to ensure the relationship quotient stays high, thereby leading to trust. Trust effectively leads to customers buying faster and bigger (ticket sizes) from the sellers. All of this is now getting orchestrated by technology without depending on individual sales behavior.
AI/ ML in Insurance
Both AI/ML are playing large roles in most aspects of customer engagement, propensity modeling, risk management etc at Insurers. Whether at the customer selection Phase (UW) or the Retention phase (persistency) or the claims phase, AI/ML models are allowing insurers to make the right decisions that eventually lead to better customer satisfaction and lower claim rejection.
Challenges faced by insurance agents
- Commoditization of products resulting into pricing being the top deciding factor
- Rookie agents mis selling products leading to bad customer sentiments
- Legacy Tech to deal with while working with insurers
- Lack of transparency in the whole customer onboarding process. Delays, apathy etc
About Sumanas Kar:
Sumanas has 18+ years of experience working in the Insurance/ Insurtech industry ranging from roles in business development, digital, projects, account management, distribution, claims, technology and enterprise SaaS. His insurance expertise encompasses distribution, product, regulations, technology and industry trends.
Sumanas is a foodie to the core and cooking helps him unwind. Embarking on long road trips is his latest passion.