Blockchain and AI-driven technology can disrupt health insurance industry

NEW DELHI: Covid-19 has led to digital acceleration and adoption. Social distancing is now making customers adapt to online purchases and services. This presents an opportunity for a change in business models, from traditional face-to-face to phygital models, which combines digital tools and strong customer relationships.

In an interview with Mint, Prasun Sikdar, MD and CEO, ManipalCigna Health Insurance, said technology and online channels have helped the industry reach some of the un-served markets in the country.

Edited Excerpts.

How are new technologies like AI and blockchain going to disrupt the insurance industry?

Amid the pandemic, agents and other distribution teams have been upskilling and adopting digital methods of marketing, sales and service. While in the insurance industry, technology and digitisation have always existed, but with advances such as Artificial Intelligence (AI), Machine Learning (MI) and Blockchain technology, there is potential to disrupt customer on-boarding and servicing.

The pandemic has also reiterated the importance of businesses have to be future-ready to enable a transformative customer experience. These constructive steps towards modification will promote uniformity, keeping special focus on customers. The new technologies will help boost insurance penetration and enhance customer experience.

Scope of online selling of health policies. How far do you believe the online channel would be successful in the health insurance industry?

Covid-19 has amplified the need for easy access to products, services and information. Most customers are now comfortable using online channels to buy what they need. The digital maturity of customers has seen a steep change as they spend more time online. This opens up a whole new opportunity for health insurance in India. More informed customers are expected to buy online therefore re-imagining of health insurance is the need of the hour and customisation of products with a co-creation facility with a smooth on boarding experience can help drive penetration.

We have also seen an increasing number of our policyholders transacting on the IVRS self-service tool and using digital assets like the website, our claims app for assistance regarding claims settlement, policy renewal and other necessary policy-related information. Digital platforms are helping customers to renew policies, generate claim status, and buy health insurance policy online from the safety and comfort of their homes.

Can digital sales provide a better experience to customers?

First, the impact of Covid is making people realise that insurance is no more a priority but a necessity. And, today’s consumers are well connected, act fast, and are not afraid to adopt to new technologies that can quickly impact their lives for the better.

Also, with a physical presence in the office becoming optional, a hybrid distribution i.e. a mix of in-person & remote. This change in distribution, coupled with an informed customer who wants to buy or upgrade insurance digitally will increase reach and drive online sales. Thus, with the rise of advanced technology and opportunities for digitization of insurance processes, insurers have started focusing on direct online channels which not only help insurers maximize their sales, but also provide a range of personalized services through online platform.

So, I see that in the next 10 years the simplicity, the connected and seamless experience will make health insurance a truly personalised ‘pull’ product that can be brought and serviced at a click of a button or asking Alexa and Siri.

Source: Live Mint

News Update (insurancealerts.in)