InsurTech market poised for a CAGR of 10% by 2020
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.