Improving Innovation in the Insurance Industry: Steps Every Company Should Take

[Johnny Daniels]

Insurance is a word that buzzes around in society. It is an essential investment that anyone should make in order to protect themselves, their families, or their assets from unforeseen circumstances. In India insurance is of two types – life insurance and general insurance. While life insurance protects the individual, general insurance will protect different non-life aspects like health, house, vehicle, and travels.

Innovation and Insurance Sector

A general insurance company in India provides insurance for one’s heath, home, motor vehicles, and in travel plans. Insurance is one field where innovation is not much discussed. The global pandemic, however, showed us that a disruption on global scope is no longer within the scope of science fiction. With a changing world the industry should also embrace change. Globally general insurance companies are ushering changes. General insurance companies in India should improve their innovativeness to help the insurance industry further.

Innovation Ideas for Insurance Companies

Innovation in insurance sector is a wide spectrum topic which needs consideration of several factors, parameters, and identification of the needs and preferences of the various target demographics. Nonetheless, there are many innovatory steps the insurance companies can take up, some of which are discussed here -

• Investing in a general insurance plan is not only a sign of financial wisdom, it also shows the policyholder’s responsibility and care towards family. A general insurance company in India can easily show their care for its loyal customer. They can introduce loyalty programs which will give out points. Customers practicing healthy lifestyles or safe driving can be rewarded with points. These points may add up into rewards for the customers.
  
  
• Since a general insurance company expects their customers to remain loyal to them, the focus of these companies should be on the customer experience. Companies should have dedicated departments to ensure that customer experience remains competitive. They can ensure that newer communication channels remain open for customers. With multiple channels of communication, the companies can remain in touch with their customers throughout the year rather than only during renewal period.
  
  
• Offering easy access is another point that insurance companies can work on. And in doing so communication is one of the most important factors. Customer experience will improve further if companies ensure that the language of communication is simple enough to reach to those who are innocent of even the basics of general insurance.
  
  
• General insurance companies collect vast amount of data shared by their customers. Companies can improve by utilizing AI to optimise their services. This collaboration could potentially become a game changer for the industry. Profit apart, this will further boost the bond between the companies and their customers since this is a sign that the feedback shared did not go to waste.
  
  
• The pandemic has shown the waning importance of physical meetings. The world had shifted online almost overnight. General insurance companies in India should also take note from that. From conducting virtual meetings with the clients, to assisting them through a web platform, companies should create a welcoming virtual atmosphere for their customers. The convenience and the efficiency of the internet cannot be argued against. Respecting the customers’ time will further boost a company’s image.

 Innovation ensures progress. Insurance is and will remain relevant in our society. It is the duty of a general insurance company to embrace innovations. By following the above points, a general insurance company in India can improve the scope of innovation in the insurance sector.