India’s Leading BFSI Companies 2017
Bajaj Allianz General Insurance Company Limited
Growing financial literacy has placed the Indian Insurance sector on a growth trajectory. What are your views on opportunities in the Indian insurance industry? The growth in the Indian Insurance sector and the new opportunities cannot be solely attributed to the growing financial literacy. Many factors such as the advent of digital revolution, changing consumer demographics and several new initiatives by the government that are fueling growth and consumption in the economy have had an impact on the industry’s performance. Given that insurance still remains a highly under penetrated market in our country, digitization has helped the industry reach the last mile in a cost-effective manner. The changing customer behavior patterns and a demographic drift to a younger generation of consumers that has information at finger tips - the balance of power is now shifting to the customers, across all B2C industries, and insurance is no different. This shift is already fostering innovations in product/service design and delivery. The insurance industry is also expected to embrace the latest technologies for risk management and claim settlement. The recent industry developments like the move to list public sector insurers will ensure that profitability of insurance companies will now take center stage and pricing would be made more sustainable through risk based underwriting. It is also expected that the government along with the regulator will continue working towards bringing out more affordable insurance schemes in association with insurers to increase insurance access and extend the financial security net to the masses especially in the tier 2 and 3 cities and other rural areas. This collaboration between the center and the industry will further propel the growth story.. The Indian government is increasingly focusing on adoption of digital technologies in the financial industry. What is your outlook on the adoption of digital technologies over the next five years, especially with respect to insurance?
If we look at the last 5 years of digital transformation, apart from infusing technology to enhance operational efficiencies insurers have been able to create digital offices and move away from the traditional brick and mortar model. Digital technologies have helped improve the service capabilities manifold by providing platforms to empower customers to perform insurance related transactions instantaneously at their own convenience whilst allowing insurers to offer services at the customer’s doorstep, producing more sophisticated & robust techniques for fraud detection. The industry today is at the cusp of a revolution as technology enables it to move from reactive to preventive business model. Connected devices, sensors and Internet of things (IoT) based solutions are allowing insurers to develop usage based insurance offering and are facilitating effective risk management. Bajaj Allianz General Insurance set up the platform for usage based insurance in India by launching Drive Smart, a connected device that offers real time feedback on driving behavior and rewards good driving behavior. The real time data ensures greater availability of lifestyle, behavioral and medical data at the insurer’s disposal. This will lead to the development of automated underwriting model by the use of predictive analysis in almost all lines of business. . The use of technology will also see a greater impact in the claims process, making it more efficient & fast. Inyour opinion,what additionalmeasures could be undertaken by the government/ regulator to support the growth of the Indian insurance industry? The role of government and regulator would be instrumental in addressing two pressing issues. One is the rising health care costs that have made it very difficult for a common man to access affordable, but quality health care financing options. To address this issue, the government can look at making it mandatory for employers, both in organized and the unorganized sector, irrespective of the number of employees, to provide health cover to everyone working for them. Besides, a national health scheme by the
Tapan Singhel Managing Director & Chief Executive Officer
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