Mind your language. The customer expectations are rising - Amazon, Tesla, Netflix and more…

Insurance Alertss

Our Editor in Chief  Mr. Vivek JAIN in conversation with Mr. Praveen Gupta, former MD & CEO Raheja QBE General Insurance Company in context of the recent article written by him https://bfsi.economictimes.indiatimes.com/blog/insurance-customers-desire-an-amazon-moment/4461

VJ: What according to you is the Amazon moment? 

PG: I referred to it in a generic sense. It is incidental that Amazon is investing in one of the general insurers. Any fulfillment of service delivered in a defined time frame, with maximum choices, at a competitive price, quality is guaranteed with extreme focus on the customer - is broadly what it is. The work from home situation brought more and more of us into that loop. We have also seen the dedication and focus of mom and pop shops raising their bar and delivering great service. 

The language of a customer can set the tone for his or her expectations - thereby nudging the service provider to continuously lift its game. 

VJ: How exactly would that work?

PG: A combination of commitment and technology which make things happen quickly, efficiently, and intelligently. Thanks to the Insurtech tools using artificial intelligence (AI) both scale and turnaround time have been revolutionised. One of the health insurers in Europe, for instance, brought down its health-related medical underwriting decision making from 6 hours to 6 seconds. Anyone or any process that does not bring value ought to be weeded out. We are still in the paper pushing mode in many aspects of underwriting and claims processes. An enhanced customer experience will only build trust.

VJ:  Is the Tesla and Netflix moment next? 

PG: Elon Musk the Tesla boss has a unique vision which will revolutionise the insurance offerings and pricing basis their own actuarial modeling. This will surely have a knock-on effect on the entire auto segment. Btw Tesla just launched a broking arm in China – their largest market outside the US. Netflix is renowned for its flexibility and choice. When customers get addicted to it, they wish to seek similar experiences from all other providers. Insurance will be no exception. 

VJ: Health premium up to July for the Industry first time overtook the motor premium - is it the new normal? 

PG: We need to wait and see. In big cities younger people are already in an Uber and Ola mode. If the providers can demonstrate quality and consistency, they will hold the fort. Having said that, automakers and dealers are putting in place digital fixes to get back on the road. From 50 – 55% in pre-Covid time, 65 – 75% of customers are reportedly expected to finalise their car before visiting the showroom now! The generational shift in our population will influence the auto sales intensity. The pandemic on the other hand will reinforce the growth in health insurance demand. That may result into a long-term pull phenomenon than the traditional push.

VJ: You also refer to Bharat and India? 

PG: We are soon going to be the most populous country in the world. The demographic dividend need not stop us from delivering to those on the other side of the digital divide and to those who fall outside the inclusivity zone because they have aged and are outside the digital ecosystem. The number will be sizeable. This is what the Bharat and India divide is about!