Anushruti Singh
India’s insurance sector is primarily driven by economic growth, an expanding middle class, innovation, and regulatory backing. According to Swiss Re’s analysis, Over the next five years (2024-28), total insurance premiums are expected to increase by 7.1% in real terms, exceeding the worldwide (2.4%), emerging (5.1%), and advanced (1.7%) market averages. At this rate, India will have the fastest-growing insurance market among G20 countries.
On the other hand, the market faces issues including risk perception, underwriting, and data on existing natural catastrophe exposures. Speaking with SME Futures, Sharad Bajaj, COO of InsuranceDekho.com, stated that AI and Machine Learning are likely to transform operations such as claims processing and underwriting by automating processes. In this one-on-one, he also covers other topics, such as insurance for MSMEs in rural areas.
Here are the edited excerpts:
How do you perceive the unique challenges and opportunities within the insurance sector, and how does your company aim to address these effectively?
In the insurance sector, there are significant challenges like regulatory complexities, climate change impacts, and cybersecurity threats. However, these challenges also create opportunities for innovation through advanced data analytics, investments in insurtech for enhanced customer experiences, and the development of sustainable insurance products.
In India’s dynamic insurance landscape, InsuranceDekho has strategically positioned itself to effectively address both challenges and opportunities. We leverage technology like the ‘IDEdge’ app to streamline processes such as onboarding, KYC verification, and policy renewals, thereby improving operational efficiency and customer satisfaction. Initiatives such as the IDEdge Academy and digital endorsements underscore our commitment to customer education, aiming to shift the perception of insurance from a mere cost to a valued investment.
Prioritising accessibility and innovation contribute to broader efforts to increase insurance penetration nationwide. Lastly, embracing technology and sustainability enables effective risk management, drives growth, and fosters stronger customer relationships.
Lately, regulatory bodies have become stringent about rules. How does the company effectively monitor and adapt to diverse regulatory requirements across industries and regions to maintain comprehensive compliance?
Our company effectively monitors and adapts to diverse regulatory requirements across industries and regions through a comprehensive compliance framework. This includes dedicated compliance teams that focus on regional and industry-specific regulations, advanced monitoring systems that track regulatory updates in real-time, and regular training programmes to keep our staff informed about the latest requirements. We collaborate closely with legal experts and regulatory bodies to ensure that we receive timely guidance and insights. Frequent internal audits and reviews help us identify and address potential compliance gaps promptly. Additionally, our customisable compliance policies are designed to be adaptable, allowing us to meet specific regulatory demands across various jurisdictions. Through these measures, we ensure thorough compliance, mitigate risks, and uphold our commitment to reliability and integrity.
What emerging trends in the Insurance landscape do you anticipate, and how do you plan to adapt your operational strategies to stay ahead of the curve and meet evolving needs?
Looking ahead, the insurance industry is poised for transformative shifts. Advances in Artificial Intelligence (AI) and Machine Learning (ML) are expected to revolutionise operations such as claims processing and underwriting, automating tasks and leveraging data-driven insights for greater efficiency.
Blockchain technology is anticipated to enhance transactional transparency and security, particularly in smart contracts and fraud prevention. The Internet of Things (IoT) will expand insurers’ capabilities by delivering real-time data from insured assets, enabling personalised insurance offerings and precise risk assessments, notably in sectors like auto insurance through telematics.
Furthermore, the integration of big data analytics, predictive models, chatbots, and cloud computing will empower insurers to gain deeper insights into customer needs, forecast market trends, and optimise operational processes. These emerging trends promise to foster innovation, elevate customer experiences, and enhance overall industry performance in the foreseeable future.
We have well-defined operational strategies to maintain our competitive edge. Our foremost priority is a customer-centric approach, enabling us to deeply understand market needs and collaboratively innovate solutions to meet demand. Significant investment in workforce development ensures our team is equipped with diverse product knowledge to effectively address customer requirements. We empower our employees with ownership to foster experimentation, idea-sharing, and continuous improvement. Vigilant monitoring of emerging trends ensures that we remain at the forefront of industry developments.
How does your company approach customisation and flexibility in meeting the diverse needs of your insurance customers?
At InsuranceDekho, we take a comprehensive approach to customisation and flexibility in meeting the diverse needs of our insurance customers. Our strategy is anchored in expanding our product portfolio to include not just motor, health, life, and commercial insurance, but also a wide range of financial services. This expansion allows us to cater to a broad spectrum of customer requirements, enhancing our ability to cross-sell and upsell non-motor products through our extensive distribution network.
We have also diversified our distribution channels, embracing both B2B2C and B2C models, and have ventured into SaaS to facilitate BanCa partnerships, thereby expanding our market reach and improving profitability. Moreover, our strategic evolution includes significant scale achievement in premium sourcing, particularly in commercial insurance, which has led us to offer reinsurance brokerage services. By integrating these initiatives, we ensure that our solutions are tailored to meet the specific needs of our customers, fostering trust, transparency, and sustained customer satisfaction in an evolving insurance landscape.
We foster strong partnerships and alliances by aligning with businesses and insurers through shared objectives and transparent communication. By partnering with 48 insurers offering 680 plans, we engage in regular strategy sessions to co-develop innovative products and share valuable data insights. This collaborative approach enhances our service offerings, expands our market reach, and drives mutual success.
