Going digital is the way forward for all insurance companies

The much-hyped digital penetration seems to have started impacting the Indian insurance sector as well. When it comes to buying or renewing an insurance policy, especially general insurance, technology, these days, is playing a critical role in driving growth, efficiency and customer satisfaction. Digital adoption is no longer just a choice; it has become a necessity for businesses to thrive in today's rapidly evolving landscape. A staggering 70 per cent of consumers are inclined towards online platforms for general insurance. And if a recent survey by ICICI Lombard is a pointer then the digital channel receives an overwhelming satisfaction rate, with more than 90 per cent of its customers endorsing it. Digital methods are used for purchasing, claims processing, renewal and interactions with service channels such as internet banking, mobile apps and online payments. Nearly 53 per cent of customers are aware that they can purchase a general insurance policy online. Ironically, when it comes to health insurance, the percentage of customers who are aware of purchasing policy online is relatively higher at 58 per cent, compared to motor insurance at 50 per cent. What is more significant is that compared to youth, those over 45 years have utilized online platforms more frequently for opening accounts and documentation purposes, whereas other activities tend to be less popular with the older age groups, contrary to popular perceptions.

That’s not all. The incidence of using mobile apps for policy purchases is higher among female customers (35 per cent). Besides, a higher proportion of women have used online platforms for account opening, while men demonstrate a greater inclination towards making online payments (45 per cent), implying that women are taking the lead. These facts and figures are true in metro cities and Tier 1 and Tier 2 towns, particularly in the age-group of 25-55 years. It is pertinent to note that in the last one year or so, online purchase of general insurance, getting information, and fulfilling service needs has gone up significantly among Metro and Tier 1 customers compared to those from Tier 2 towns. Customers increasing their usage of online space in general insurance demand improvement in the purchase process the most and have more expectations from the claim process. This indicates that customers are seeking enhanced convenience and efficiency while purchasing insurance online. This underscores the importance of streamlining and simplifying the purchase journey.

Interestingly, fund transfers and documentation have also witnessed the highest utilization of digital platforms like websites and mobile apps. Online fund transfers appear to occur more frequently in the west zone (54 per cent) and less frequently in east zone (30 per cent). Fund transfers have been the primary use of internet platforms in Metro and Tier 1 cities. Among general insurance customers, mobile apps are the most preferred online channel for insurance-related activities. WhatsApp has emerged as a close contender to websites in terms of preferred mediums for online activities related to general insurance. Experts, therefore, have reasons to believe that the future belongs to those who embrace digital innovation and adapt to the changing digital landscape.