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Your Money: Tech makes car insurance easier; policy renewal is now simpler

21-Nov-2023

If a few years ago, someone were to tell you that you could choose to pay your motor insurance premium only for the days you drive, if not unimaginable, it would have still seemed far-fetched.

Cut to the present day. The world of insurance is evolving every moment with customer-centricity becoming the focal point of the entire industry. Motor insurance, which was perceived to be just a legal mandate, has evolved now to proactively adopt a customer-first approach, much like its health and life counterparts.

This rapidly changed, especially after the pandemic, with regulatory authorities stepping in to make motor insurance more inclusive and customer-friendly. This shift was further driven by technology and the evolving demands of customers. Product innovation and policy changes ensured that customers see what they get and they get what they pay for. Unnecessary costs and inflexible products started making way for personalised experiences and a transparent ecosystem.  Some recent initiatives driving this change are:

Pay as you drive (PAYD)

One of the most important innovations to have happened in the motor insurance industry is the advent of pay-as-you-drive policy. The technology, which leverages telematics to evaluate the driver’s vehicle usage, helps correctly assess the premium requirement for an individual.

With PAYD, you only pay for what you need. This came as a groundbreaking initiative especially during the pandemic when vehicle usage was limited but policyholders were still paying full   premiums. This single step by Irdai drove the industry towards a more customer-centric approach.

Digitised solutions

With seamless access across multiple touchpoints, customers today operate in a digital world of insurance. Right from platform discovery to policy management to claims processing and after-sales service, motor insurance provides convenience, safety and comfort to customers at their fingertips. They now have access to  apps and portals that enable them to make changes to their policies, report claims, and receive prompt assistance with ease.

Hassle-free KYC processes

The motor insurance ecosystem just turned more transparent and accessible with the KYC mandate on new purchases or renewals. The processes were made a lot simpler with C-KYC and e-KYC enablement. The collection and usage of data, ensuring privacy and data security, and the need for regulations to keep pace with innovation has all been made a lot easier with technology.

Motor insurance industry today stands at the cusp of customer-centricity where greater personalisation and streamlined processes will redefine the overall customer experience. The adoption of artificial intelligence and data analytics will likely play a pivotal role in this transformation.

Source : Financial Express

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