India: Insurance CXOs voice their concerns and priorities
Source: Asia Insurance Review | Jul 2019
Long and manual business processes are among the top concerns of senior management in the insurance industry, according to CXOs surveyed by PwC India in the professional services firm’s Insurance Technology Adoption Survey 2019. CXOs admit that customer expectations are higher and their own processes need to be aligned judiciously.
PwC asked CXOs about their experiences related to customer-oriented capabilities, InsurTech, social media and emerging technologies. The findings are published in the report ‘Competing in a new age of insurance: How India is adopting emerging technologies’, produced jointly with the Confederation of Indian Industry.
Other findings from the survey include:
- From a customer’s perspective, the key reasons for insurance purchase in India are tax incentives and compliance mandates:
- Low customer awareness related to the need for and amount of insurance cover required is a leading concern of insurers. It is common for prospects and customers to compare life insurance with other available investment options.
- Poor understanding of insurance policy terms and features usually results in wrong purchase and later into customer churn, which impacts the revenue of the organisation.
- Customer acquisition is the top priority area from the investment and innovation perspective. Most of the CXOs have a clearly defined roadmap to enhance their customer acquisition performance. This is followed by improving self-service capabilities for customers.
- Most of the CXOs don’t recognise InsurTechs as an immediate business threat. Insurers are embracing technology as an enabler rather than a disruptor to cater to customers and set up robust infrastructure for innovation and continuous improvement. In the CXOs’ opinion, InsurTechs are solving specific problems related to customers and distribution channels and may be good candidates for collaboration in certain cases. Almost all CXOs agreed that they have started working on proofs of concept with InsurTechs or are in the process of evaluating business cases for collaboration with InsurTechs. They also agreed that building their own capabilities around InsurTech will be beneficial in the long run.
As InsurTechs don’t have a legacy burden and are born digital, they have the potential to disrupt the market. However, the lack of insurance expertise will force them to coexist and depend on insurance companies.
- Currently, the role of social media in the insurance sector is still at a nascent stage, with its use being primarily limited to that as a platform for customer complaint and grievances. Some of the CXOs mentioned that their organisation is actively present on social media to generate awareness about their insurance products, to advertise and to achieve customer delight. A