InsurTech Racing Hard With Fintech To Be The Next Big Thing In India
InsurTech is used to give customers a seamless experience and empower them to access insurance
Fintech in India has seen a sudden boost and almost every new start-up, these days, comes with the assurance of smooth handling of finances.
While Fintech takes all the cheers, silently brewing in the corner is it's cousin InsurTech. But soon it will be ready to take over, say experts.
InsurTech, which refers to technological advancement in the insurance sector, has been touted as the next big opportunity. A PwC report even suggests that three in four insurers have predicted disruption in their sector within the next four years. However, the process has already begun.
InsurTech So Far
The insurance industry has not seen too many technological advancements but the servicing part of the sector has been evolving drastically. "Insurance sector has seen a slight lag when it comes to adapting to technology. But now, InsurTech is being used to give customers a seamless experience, empowering them to have an access to insurance. With mushrooming of various portals, customers can check policy details for themselves and claim for it online," said KG Krishnamoorthy Rao, MD & CEO of Future Generali Insurance.
Insurance Requires Concept Selling
Rahul Mohata, COO, 121policy.com, said the insurance industry in itself was still in a nascent stage in the country. "Insurance sector is yet to evolve in the country, currently less than 4 per cent of the population are covered. Even the largest insurance company in India won't have more than 2,000 branches all over India. The challenge lies in the fact that insurance requires the selling of the concept," he stressed.
Cheap Internet Will Help Gain Customers
Customers of Insurance are mainly restricted to the Tier I or Tier II cities, where they will soon reach a saturation point if they haven't yet, Mohata pointed out. "The real penetration will happen when we reach out to the Tier III and Tier IV cities. This is possible now because of the availability of data at a cheap rate and smartphones. Those who have access to these two, will have access to a lot of products and you don't need infrastructure to increase penetration. They will be able to see and compare policies, check reviews and then decide what they want to buy," Mohata added.
There are many interesting concepts coming up in insurance. "Abroad, the connected car concept is becoming popular. Through this concept, the insurer can observe the driver behaviour and charge premium accordingly," said Rao and added, "Even we have developed an app that reduces the turnaround time substantially for the buying and selling of insurance."
Mohata, on the other hand, is making inroads into health insurance. "Our platform can help people, even in remote areas, get access to health insurance and also help them make an informed decision. It specializes in family health insurance, maternity cover, senior citizen health coverage, diabetic cover, corporate health insurance, overseas health insurance and health quotes," he said.
With most companies offering their services online, one would think it would affect jobs. "Not in the insurance sector. You can still have all the services online but the convincing part will need to be done with human intervention," said Mohata.