How Technological Advancement in the Insurance Sector is Helping Customers?

Technological Advancement

Technology has changed the way we live our lives. Video calls have brought long-distance relations closer while the e-commerce segment has made buying and selling as simple as possible. Even when it comes to the financial sector, technological developments have changed the name of the game. Today, financial transactions can be done with one swipe and buying insurance is no different.

In fact, with the technological developments in the insurtech space, the segment has turned more customer-friendly and accessible. What looked like an enigma to many has been simplified for the common man. Here are some ways how –

  1. Ease of online purchases

    Firstly, buying insurance products has been highly simplified as insurers are offering online policies. Nowadays, customers can buy life insurance, health insurance or even motor insurance online. You need to fill up an online form and upload your documents. That’s it. No need to visit the branch office or look for an agent. The whole process takes a few minutes and you get insured right from your home or office. This online mode of buying has made insurance products more popular among the masses.

    Moreover, insurance policies have switched to the eKYC module for authenticating their customers. The authentication is done online through personalised links or video calls, cutting down the hassles of physical verification. This has, thus, made insurance policies all the more appealing and easy to buy.

  2. Easy accessibility

    Another way in which insurtech has helped customers is by providing easy accessibility to policies and even to the insurance company. Nowadays, you can reach insurers through a WhatsApp message or even through their online Chatbox. 

    Moreover, every customer can have an e-Insurance Account with which they can access their policy records at any time, and from anywhere. 

    This easy accessibility has cut down the concerns of storing and accessing physical policy bonds. Moreover, the option of connecting with the insurer in real-time has built trust among customers and given them the convenience of having their queries heard and resolved without running down to the branch office.

  3. Convenient payment modes

    With the development and popularity of digital payment solutions, paying insurance premiums has become convenient. Moreover, many digital payment banks have tied-up with insurers to offer affordable insurance solutions to their customers. This has boosted insurance demand and has also allowed customers to afford insurance policies easily.

  4. Convenient claims

    Even the claim process under insurance policies has been simplified due to technological developments in the insurance space. Nowadays, intimating a claim is as simple as sending a WhatsApp message, an online alert or an SMS message. Under motor insurance policies, the claim can be settled simply by uploading online images and videos of the damages. The insurer authenticates the claim online and approves it so that you can get the vehicle repaired on a cashless basis without fuss.

  5. Transparency 

    With online insurance policies, the finer details of the coverage have been laid bare for the average consumer. Online platforms simplify the policy benefits for average consumers to understand. Moreover, with the different aggregator platforms available, you can get personalised assistance in understanding the technicalities of the policy that you are buying. The possibility of online comparisons has also made it easy for consumers to compare the benefit structure and the pricing of insurance policies to find the best plan that matches their needs.

  6. Helpful calculators 

    Lastly, online calculators make it easy to calculate the insurance coverage that you need depending on your income, expenses and financial goals. These calculators also help you plan a suitable corpus for your goals and estimate the savings needed to achieve the corpus calculated. There are premium calculators that help in estimating the premium payable for the policy that you select and make it easy to buy a suitable policy. Then there are online tax calculators which help you find the quantum of tax saved with a life and health insurance policy.

With all these digitized solutions available right at the fingertips, buying and servicing an insurance policy has become a simple affair. 

The technological advancements in insurance are expected to grow as newer and more customer-friendly technological solutions would be introduced in the future. These advancements would make insurance more accessible and would even increase its penetration in India, where the current penetration rates are quite low. As insurtech evolves; you, as the customer, would be benefitted the most.