In­surTech mar­ket poised for a CAGR of 10% by 2020

Banking Frontiers - - Research Notes - Insurance Tech -

The fo­cus of the in­sur­ance in­dus­try is shift­ing to­wards ex­plor­ing au­toma­tion of more com­plex and risky pro­cesses. The re­cent tech­nol­ogy trends such as ar­ti­fi­cial in­tel­li­gence (AI), ma­chine learn­ing, blockchain, Ro­botic Process Au­toma­tion (RPA), etc, have sig­nif­i­cant po­ten­tial to stream­line in­sur­ance op­er­a­tions and en­hance cus­tomer ex­pe­ri­ence, ac­cord­ing to an Assocham re­port ti­tled ‘In­sur­ance Sec­tor in trans­for­ma­tion – Man­ag­ing Dis­rup­tions’, au­thored by Ashvin Parekh, man­ag­ing part­ner, APAS. A re­cent study con­ducted by Tech­navio, the global In­surTech mar­ket has also in­di­cated that the In­surTech mar­ket will see a steady growth - CAGR of more than 10% by 2020.

Most re­cently, Ba­jaj Al­lianz Gen­eral In­sur­ance launched a slew of dig­i­tal prod­ucts lever­ag­ing blockchain tech­nol­ogy and AI, with an aim to trans­form and sim­plify cus­tomer ex­pe­ri­ence. These new prod­ucts will help the com­pany go pa­per­less in terms of claim set­tle­ment process and re­duce cus­tomer ser­vice turn­around time dras­ti­cally. Other in­sur­ers – ICICI Lom­bard Gen­eral In­sur­ance, Birla Sun Life In­sur­ance, PNB MetLife In­dia In­sur­ance and HDFC Life In­sur­ance – are us­ing bots in ei­ther cus­tomer sup­port or sales.

Some in­sur­ers are also us­ing AI tools for au­to­mated replies to cus­tomer emails as well. HDFC Life re­cently launched its first life in­sur­ance email bot. The AI-based tool, named SPOK, is claimed to be the first in In­dia that can au­to­mat­i­cally read, un­der­stand, cat­e­go­rize, pri­or­i­tize and re­spond to cus­tomer emails within mil­lisec­onds. Soon, the com­pany would be able to email pol­icy doc­u­ments to its cus­tomers us­ing this tool.

ICICI Lom­bard is us­ing its chat­bot for sales of poli­cies as well. In the 6 months since its chat­bot plat­form MyRA was launched in De­cem­ber 2016, it re­ceived an en­cour­ag­ing re­sponse. Over 60,000 cus­tomers uti­lized the chat­bot, of which about 10% went on to get­ting a quote from ICICI Lom­bard. The com­pany also is­sued about 850 poli­cies through the chat­bot. MyRA lets you buy and re­new two-wheeler in­sur­ance poli­cies. It trans­fers claim-re­lated queries to hu­man agents, as an­swer­ing them is more com­plex. At the same time, the com­pany has started us­ing MyRA to sell some com­plex prod­ucts like fire and bur­glary in­sur­ance to small and medium en­ter­prises.

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