The largest consumer segment for insurance companies in India are millennials and Gen Zers. But these are also the generations that follow a digital-first lifestyle. They look for products and services online, prefer to connect with brands on social media and want their problems solved instantly through the latest technology solutions. Plus, they expect connected and personalised digital experiences.
Research shows that 73% of customers prefer to fulfil their general insurance needs online, while 62% do so for health insurance. Little wonder then that the online insurance market, valued at $1.86 billion in 2024, is expected to expand at a CAGR of 12.20% to reach a value of $3.31 billion by 2029. To remain relevant in Digital India, insurers need to rethink their business models, operational styles, offerings and customer outreach. This is where partnerships with the best InsurTech companies in India can prove invaluable. With the support of the latest technological advancements, insurers can equip themselves to meet the evolving demands of India’s digital natives. Here’s how.
Delivering Convenience
Natural Language Processing (NLP) and generative AI are offering consistent omnichannel customer experiences, simplifying complex financial terms and enabling seamless interactions. Advances in technology are making shopping for insurance policies as convenient as shopping on Amazon, with easy access to policy details for informed decision-making. Intuitive interfaces and user-friendly navigation allow customers to compare and choose between policies, giving digital natives exactly what they want – control over their finances.
Digitalisation also benefits insurance companies in India, accelerating time-to-market, service delivery and risk assessment. Operations can be streamlined while vast datasets can be analysed effortlessly to drive strategic business decisions. Can you imagine manually extracting information from the millions of customer documents that insurers deal with daily? InsurTech companies in India are easing the process while preventing delays in policy issuance, premium payments and claim settlements. The end result is a better brand image among millennials and Gen Zers.
Another characteristic of digital natives in India and the rest of the world is their need for instant gratification. Optical Character Recognition (OCR) is a technological advancement that powers insurers' ability to allow customers to upload documents online, automate the analysis of such documents, and extract meaningful information to personalise customer support, policy recommendations, and more.
Giving Customers the Power of Self-Service
Digital natives are also the people who crave greater control and autonomy than their predecessors. This is why they appreciate transparency and on-demand access to information. They want to be able to make inquiries, learn about products and services and complete their buying journey seamlessly on the channel of their choice. For example, ICICI Prudential Life Insurance reports that 90% of service requests it receives are self-help in nature.
This makes AI-powered virtual assistants indispensable for insurance companies in India. Plus, InsurTech companies in India can power insurers to deliver consistent experiences across channels by easing data access for digital tools and human support staff. Giving customers all the information and tools (such as premium calculators) they require for informed decision-making gives them the autonomy they desire. This can help brands nurture trust and loyalty.
Faster Claims Processing
Apart from all the benefits and features provided by insurance policies, customers also want to know how effortless the claims process will be. Traditional insurers can take days or even weeks to process claims, with multiple verification rounds, validations across various departments and back-office delays in processing. But today’s customer wants agility via digital modes of policy issuance, onboarding, record-keeping and filing claims. InsurTech companies in India offer powerful tools for all this, while also automating KYC and claims verification. This saves time, effort and costs for insurers, and provides satisfying experiences for customers.
Easing Financial Security
Another way to give control to the customer is to provide tools that help them make informed decisions regarding their financial goals. This is especially useful for insurance-plus-investment products, such as ULIPs. Robo-advisors can help customers evaluate their risk tolerance, the capital required to achieve their desired savings, and more. Providing such digital tools demonstrates a brand’s commitment to customer welfare, which will win them brownie points from millennials and Gen Zers.
Marketing to Digital Natives
Tailoring products and services to the digital natives of India is only part of the story. These offerings also need to be marketed in a way that resonates with these customers. Omnichannel marketing is the way to go. But first, you need to know your customers and their preferred channels for brand interactions. This can help you choose the right digital channels for different regions. Social media is indispensable because India is home to 462 million social media users, as of January 2024, representing 32.2% of the total population.
Targeting social media also means leveraging the power of influencer marketing. This proves immensely useful in India, given that the country’s influencer marketing industry is forecasted to grow from ₹19 billion in 2023 to ₹34 billion by 2026.
Another aspect to consider is smartphone penetration, which stood at 71% in 2023. Plus, research shows that customers respond to SMS marketing 209% more than to email marketing and phone calls. In addition, mobile push notifications can be very effective, especially if they are personalised based on the recipient’s past website or app activities.
The Right InsurTech Partnership Can Drive Digital Supremacy
Partnering with the right InsurTech in India is the best way to gain an advantage over traditional insurance companies. A digital transformation provides a flexible ecosystem that supports easy integration across business verticals and units and with the latest technological developments. API-based interfaces empower consumers to guide their own purchase journey, much like on an e-commerce store. Plus, InsurTech powers insurers with data analysis capabilities to identify emerging market trends, customer needs and new markets. Data analytics is also the route to personalised customer experiences.
Partnering with an experienced and trusted InsurTech solutions provider can offer insurance companies in India effortless migration to a digital platform, transitioning their legacy infrastructure to a powerful online ecosystem with minimal operational disruption. It will facilitate the provision of a wide range of offerings, catering to the needs of digital natives, along with enhanced customer interactions and overall experience. The speed, security and convenience of buying insurance online is a win-win for both insurers and their customers.
Bibliography: (Last accessed on August 16)
