By Sumit Rai, MD &CEO, Edelweiss Tokio Life Insurance
Progressive policy reforms, strong macroeconomic fundamentals, and an aggressive digital push has allowed the Indian economy to show remarkable resilience amid a challenging few years. Not only has the Indian economy demonstrated a strong recovery following the Covid 19 pandemic, but also maintained its growth momentum despite the global headwinds. This display of economic strength has prompted financial pundits to estimate that India will become the 3rd largest economy by 2030. As India sprints towards this aspiration, the insurance sector will play a vital role in fuelling its global ambitions.
The year 2022 has been perhaps the most vital one for insurance industry. Not only did it regain growth momentum, but also benefitted from a fundamental reorientation brought about by the pandemic. The industry has embraced digital solutions in a big way in recent years to bring operational efficiency and transformation. Strengthening its risk management practices, innovating products & services, and bolstering Customer Experience were among the key priorities for the industry in the year gone by. Riding high on its increasing relevance, the industry also prioritized digital enablement to improve its distribution network and found newer capabilities to strengthen its advisory models.
As we look to the next decade, here are 2 key trends that shaped the industry this year and will have a long-lasting impact.
1.The growing role of technology in bolstering CX:
Coupled with government’s aggressive push on Digital Bharat, the digital explosion during Covid years has brought about a new era of reorientation in the insurance industry. There has been an unwavering focus on process automation and optimization thereby making customer life cycle management more seamless. The last year, especially, saw a heavy push on redefining of CX strategies and aligning them with the fast-evolving external environment as well as customer expectations. Going ahead, dematerialization will play a big role in alleviating CX and could have an effect comparable to that on the stock market.
2.Regulatory reforms:
With its latest reforms, IRDAI has underscored its agenda of sustained growth for the industry and insurance for all. Over the long term, these changes will make financial protection pervasive in the country and improve insurance penetration. More critically, the focus on creating ease of business will bring a structural transformation and elevate the Indian insurance sector at par with its global peers. Not only do we see capital inflows into the sector, but also estimate it becoming among the fastest growing insurance markets in the world.”
