Friday, 7 June 2019 – Insurance in India continues to largely be a ‘push product’ and is considered as a complex product for which customers still rely on face-to-face interactions for better understanding of the product’s features and pricing. This, amongst many others form part of the PwC-CII report titled “Competing in a new age of insurance: How India is adopting emerging technologies”.
As per PwC India’s Insurance Technology Adoption Survey 2019, 55% of the respondents mentioned that they continue to prefer buying insurance from agents and brokers. Moreover, the conversion rate from online modes stands at a mere 4%. Despite the continued preference for agents and brokers, the findings do reveal that emerging technology (such as chatbots) has already started picking up as the customer’s first point of contact. Also, 67% of customers prefer to leverage aggregators/online platforms which enable them to make calculated and informed decisions by comparing products.
Discussing the report, Joydeep K Roy, Partner & Leader, Insurance & Allied Businesses, PwC India, says, “New technology gives rise to new capabilities and processes should be redesigned accordingly to reduce wastage and delight customers. Merely adopting technology and automating processes will not eliminate inefficiencies. A change in approach is needed whereby technology is viewed as a fundamental business tool rather than an operational and process tool. The natural inhibition in a regulated industry can be dispensed with if organisations work with all stakeholders, including regulators and the Government. In this context, the healthy interest regulators are showing in sandboxes bodes well for the industry.”
Expressing hope for the future, Abhijit Majumdar, Partner and Technology Strategy Leader, PwC India, says, “The modern insurance customer prefers simple, customised and intuitive policies, an easy process and a simple and tangible cost breakup. Insurance providers have begun to appreciate this preference and have put the customer at the centre of product design, eliminating all poor experiences along the ‘moments of truth’ in his/ her insurance adoption journey. This shift in product design from product to human-centric design is a fundamental shift in the Indian insurance industry.”
The PwC survey also highlights the challenges faced by the customer at various stages of the insurance life-cycle:
About the PwC Insurance Technology Adoption Survey 2019:
PwC conducted a survey in 2019 to understand and explore how the ecosystem of customers in the Indian insurance industry is evolving. The survey had 200 respondents spanning customers, agents and insurers in India. The perspectives of all these stakeholder groups have been analysed to provide insights on how the Insurance industry is working towards meeting customer expectations and how emerging technologies can help in bridging the gap. Find out more at https://www.pwc.in/consulting/financial-services/digital-insurance.html
About PwC India:
At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 158 countries with more than 236,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com
In India, PwC has offices in these cities: Ahmedabad, Bangalore, Chennai, Delhi NCR, Hyderabad, Jamshedpur, Kolkata, Mumbai and Pune. For more information about PwC India's service offerings, visit www.pwc.com/in
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© 2018 - 2019 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.