Impact of COVID -19 on the Insurance Industry

Undoubtedly the last few months have been challenging for everyone across the globe. Today, each one of us is still grappling with this global pandemic COVID-19.

The rise in the number of cases worldwide had also forced many nations to enforce a large scale lockdown. The prime reason behind the lockdown was to control the exponentially rising figures. This surely has impacted every individual's life and the economy as well.

The pandemic has forced businesses across different sectors to completely change the way they had been operating for so long. And, in such a scenario the Indian insurance industry is surely no exception.

The extended lockdown in various parts of the country has pushed different insurance companies in India to take the digital route and continue selling the life insurance policy, health insurance policy, and much likewise settling the claims too.

Statistics Say!

As per the report given the title COVID-19: Impact on the Indian Insurance Industry shared by PwC, which is a professional services firm the two most productive months for the Indian insurance sector have been tremendously hit. Well, life insurance for March and any non-life corporate renewals the month of April has respectively hit by some 30 per cent and 15 per cent. Likewise, the report also focuses on the changes that the insurance providers would bring in depending upon the various categories of product.

None of us was prepared for such a crisis. And now when the crisis has occurred the life cover must be increased in terms of a life insurance policy. As per the report of PwC, a renewed interest will be witnessed in regards to pure life cover that totally will be web-based market and the demand for it will be boosting.

Moreover, there is no doubt that this global outbreak of novel coronavirus has surely changed the perspective of people in regards to the importance of insurance even right from a life insurance policy, term insurance policy, or any other type of policy.

Insurance Companies Going all Digital Amidst COVID-19

Buying a term life insurance policy acts as an umbrella that shields any individual. When deciding to buy such a cover primarily the age and the income likewise determine the same. Moreover, there is a change in the income level of every individual at every stage of life and the liabilities vary from one person to another. When buying a term life insurance policy, if an individual is less than 40 years then in all circumstances a cover that should be bought should be 15-20 times of the income cover.

The progress of the insurance industry towards digitization has made all the insurance-related procedures consistent. It has added, as a rule, diminishing the means associated with insurance purchasing or claiming. Most of the insurance providers have taken the digital route completely amidst this novel coronavirus. Digitization has essentially made the claim settlement process simple and customer-friendly too. The IRDAI also directs that the insurance industry has a more customer-friendly methodology. A grace period of 30 days is being given to the customers to their due premiums.

The Digital Push in Times of COVID-19

The IRDAI has acted quickly to battle the effect of the circumstance on policyholders with different defensive measures. Safety net pro the insurance companies in India was told in the beginning phases of the pandemic itself, to introduce products covering COVID-19 treatment and offer normalized COVID health insurance plans accordingly. The IRDAI additionally dedicated to handling such item product applications on a most optimized plan of attack mode.

The regulator while perceiving that digitization is the need of great importance has additionally acquainted different measures with guarantee progression of business tasks, through exchange methods of digital contact, especially concerning policy overhauling and claims. All the insurance companies in India have been ordered to put forth uncommon attempts to empower policyholders to pay the superior utilizing computerized strategies, issue strategy archives through email and show on their sites, data on substitute courses of action for premium instalments, renewal, the settlement of claims, and dwelling or other assistance demands.

Expediting the Digital Journey

Given that India has low monetary education when contrasted with some advanced markets, nothing replaces the effect of up close and personal connection between a customer and an agent. Be that as it may, self-administration entrances for policyholders are ending up being a distinct advantage by giving a quick and simple approach to interface and collaborate. These entries are based on natural and responsive plan approach and can be effectively gotten to through an internet browser or portable applications. Also, as individuals get acquainted with it, premium instalments, claims and other customer demand are probably going to increment soon.

Insurance companies will likewise need to increase their call community tasks to stay up with the rising volumes. This implies utilizing new-age arrangements, for example, cloud communication, artificial intelligence, WhatsApp based reaction, and intuitive voice reaction and so forth. The investment merits making since it takes the customer experience to another level and aides in cost improvement.

The more noteworthy coordinated effort for inner tasks: A domain where more representatives are working distantly makes it basic to move to digital just methodology. Innovation furnishes them with approaches to interface over video calls, share and team up reports, and significantly more. This additionally empowers them to be progressively viable in our current reality where customers hope to interface and lead business on the web. Be that as it may, insurance companies should upskill and reskill their workforce for the new world request. Once recruiting returns to normal, the HR’s of various companies will likewise stress on pulling in individuals who have a characteristic bent for technology.

Wrapping it Up

Ideally, we will before long have the option to leave the period of Covid-19 behind us. It is practically sure that the world after Covid-19 will never be the equivalent. We all should discover silver linings wherever to rise more grounded and better.

The novel coronavirus is without a doubt catalyzing a digitalized insurgency of the Indian protection space, pushing conventional insurance companies to investigate better approaches for working together. While it is still too soon to evaluate the drawn-out effect of COVID-19 on the protection part, the street ahead definitely, requests more noteworthy development, regarding insurance circulation as well as concerning product structure, misfortune appraisal, and handling of claims.

For the Indian insurance industry, let us hope the insurance environment at this point have understood the advantages of going digital firsthand will hold the propensity. As such, Covid-19 will trigger a tipping point that outcomes in increasingly forceful digital transformation plans for the Indian insurance industry.