Disruption can be tapped to bridge the insurance penetration gap, said Mr Amitabha Ray, Swiss Re head of P&C client markets, India, at the opening session of the final day yesterday of the three-day 12th India Rendezvous held in Mumbai.
“Digital advancements have led to changes in the way people live, interact and communicate and this in turn has also impacted the way customers view and build their relationship even with insurers, disrupting the insurance value chain,” he said.
He also highlighted the importance of expanding the reach of insurance. “Customers, simplicity, technology, affordability and accessibility are the important components that can help expand the reach of insurance,” he said.
Natural catastrophes can be managed better
Another speaker, Earth Analytics India co-founder Michael Anthony, spoke on the trends, issues and solutions surrounding Nat CAT and how disaster-induced losses could be lowered. “The main problem is that climate change leads to increase in natural catastrophe induced losses, with little information on where losses occur and the solution for this lies in better climate models integrated with meso-level insights to provide transparency on risk exposure,” he said.
Cyber resilience scores over cyber security
SBI Life Insurance executive vice president and chief of info and cyber N K V Roop Kumar said that companies should have a cyber-resilient approach which ensures greater readiness and less repetition, to be more efficient and effective. “Cyber resilience scores over cyber security for two main reasons: to avoid the catastrophic failure threatened by an all-or-nothing approach to cyber risks and to ensure that the conversation goes beyond information technology or information security,” he said.
Digital technology and dealing with changing market dynamics
Explaining the rise of digital technology and how to deal with changing market dynamics DXC Technology industry general manager Prakash Thomas in his address said that there were four major changes that need to be dealt with and they are data revolution, growth of new entrants, the digital mandate and social and economic dynamics. “While pursuing innovation, one has to deal with legacy systems as well. Also, digitally immersed consumers have to be made aware of augmented and virtual reality and on how reality is experienced and perceived. This can be achieved by developing key capabilities to enable digital transformation,” he said
Indian government health insurance— an untapped opportunity to insurers
Speaking on Ayushman Bharat, the National Health Protection Mission introduced by the Indian government in September 2018, Future Generali India Insurance principal officer and officiating CEO Dr Shreeraj Deshpande said that to date, 32 states in India have signed memoranda of understanding with the government to participate in the scheme but not all stakeholders have understood its utility and hence have delayed its implementation. “It can’t be described as an opportunity lost, but yes, it has been unutilised, delayed, untapped or at best it is situational,” he said. He highlighted the key features of the scheme, which are: a robust onboarding process, common IT application and platform, robust fraud control process for detecting and mitigating fraud risk at insurer, provider or local administrator levels and technology driven real time monitoring of processes.
Risk Exchange (DIFC) chairman Aftab Hasan spoke about the importance of reinsurance hubs and how the Dubai as a reinsurance hub became a success story.
The future of insurance: cover or service
In his closing address, Life Insurance Corporation of India manager (legal) Nirjhar Majumdar, said that the insurance Industry is changing everywhere. “The industry needs to realise that protection cover is just not enough and they need to develop an alternative business model. Various studies have discovered the fact that insurers who provide multiple services alongside ‘cover’ are able to create better customer loyalty and advocacy,” he said. Mr Majumdar is the first prize winner of the 2019 India insurance industry essay competition organised in conjunction with the India Rendezous.
Rendezvous dates announced for 2020
India Rendezvous 2020 will be held in Mumbai from 20 to 22 January 2020.
This year's Rendezvous saw a record turnout of over 700 delegates.