The insurance industry is set to undergo a major technology-driven transformation in the next decade due to the use of technologies such as Cloud, Artificial Intelligence (AI), Machine Learning (ML) and Internet of Things (IoT). , ultimately benefiting both the customers and the insurers, said
Girish Nayak, Chief Customer Service, Operations & Technology, ICICI Lombard General Insurancein conversation with
ET Spotlight.

“The extent to which we use (AI/ML) will increase significantly. Be it in underwriting, claims and fraud prevention, (we) will be using a lot more artificial intelligence-based tools,” Nayak told ET Digital Broadcast Editor Miloni Bhatt in a conversation that is part of the ET.com initiative to promote .
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ICICI Lombard, for example, has been one of the first legacy insurers to leverage digital technology and migrate to the cloud, said Nayak, the Indian insurance major with its technical infrastructure of over 600 servers, 100 applications and 1000 terabytes of data. The structure has been restructured. To become more cloud native in the last one year. It is now in the process of revamping its technology stack to make it more modern which can help in improving the customer experience.

“Cloud will certainly continue to be an important part of insurance, harnessing the power of the cloud to come up with solutions will be the only way to stay competitive. With the huge amount of data collection, AI and ML will also play an important role in the future of insurance. Will do, ”said the hero.

The insurance sector, like every other industry, has embraced digital technologies in a big way during the pandemic. Embracing this wave of digital transformation and adopting new technologies like AI/ML, Chatbots, IoT and Cloud has helped the insurance industry to launch innovative products and will be able to provide a more seamless, secure customer experience. hero.

“As these evolve, as they grow, as they become more common (AI, ML, IoT), it will change the way insurance is distributed and consumed. The entire IoT related space is also going to greatly improve our ability to manage things, so managing risks and risk prevention is something that will improve significantly as IoT improves,” Nayak said.

Nayak said, digitization has helped insurance companies transform their delivery process and the services they offer, and it will also be crucial to tap the large underpaid insurance market in India.

While significant efforts have been made by the Government of India to increase investment in health insurance, crop insurance and other insurance products, insurance penetration in India remains low, and as such, there is a need for greater insurance awareness generation.


innovation driving penetration

Unlike in the past, insurance customers today are more empowered, as technology has made it easier for them to access information and ensure knowledge sharing, thus creating a better insurance ecosystem in the country. In the past, customers could only rely on information provided by insurance agents or company, whereas today, they can access any information, read reviews and compare products before speaking to the company or agent Huh.

To be sure, insurance companies today are innovating to create products that are more inclusive and capture demographics that may have been less in the past, Nayak said.

For example, in the health insurance sector, health insurance makes a big difference when it comes to covering outpatient treatment. “Many young people feel that they do not need health insurance because the majority of their health expenses are outpatient treatment only. Now insurance companies are looking to enhance the customer experience and capture new demographics through virtual consultations through apps. , providing solutions like teleconsultation, physiotherapy and prescriptions,” said Nayak.

Women’s support features in motor insurance products are another example of how insurers are better meeting the needs of all demographics. For example, women stuck in the night are now being offered on-site assistance, the facility to drop the cab at the place of their choice and share tracking details with family members or friends.

The insurance sector has traditionally been about consumers buying solutions to protect themselves in emergencies, but would prefer never to use it. However, insurance needs to expand beyond this and create solutions that customers want to use and have a great experience with, Nayak said.

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