They say- “Change is the only constant”. On the basis of this school of thought, every industry revamps itself over the period of time. It is the surefire way to grow and progress. When time changes; business models must also change. When it comes to making best use of technological advancements, industries leave no stone unturned. There are so many ways that lead to success; blocking stagnancy is one of them. While there is a cut-throat completion in the insurance sector, it enables insurance companies to strive to bring nothing but the best on the table.
Change Is the Only Constant
Life insurance in 2018 is going through so many changes. Thanks to so many options, the insurance buyers are spoiled. In 2018, life insurance companies who make best customer service will generate excellent turnover. In present times, most of the insurance buyers aren’t naïve. They don’t buy the first plan they come across. Before buying, they compare life insurance online as they know it’s the only way to come across the best insurance plan. They know that they can find out credibility and financial health of an insurance company by checking its incurred claim ratio.
In India, life insurance in 2018 is all set to grow. While insurance penetration in India is awfully low,the financial assets in household savings are high. On the bright side, the evolution of savings habits of households in India is evolving.It is structured in the middle of a low-interest rate investment instruments. It brings life insurance in forefront thanks to the dire need of nullification of financial risks along with an attractiveinvestment option for the middle class.
Over the last few years, life insurance has evolved as a customer-oriented product. To give credit where it’s due concerned regulatory bodieshave done a great job. They have implemented changes in the guidelines and ensured more transparency in the insurance buying process.
It is expected that digitalization, agency expansion, bancassurance, government policies willact as a helping hand and support the insurance sector in 2018.
How did the year 2017 bid farewell?
The year 2018 started at an interesting note. Due to the hangover of demonetization, the annual premium equivalent for private sector individual increased. As of November 30, 2017, the first year life insurance premium has increased by 16 percent(1.81 lakh crore),  as compared to the financial year 2016-2017.The number of life insurance plan issued is 1.5 croreas compared to the marked set by 1.37 crore  in the financial year 2016-2017.
Here are the elements that are at par with the global insurance trendsand have uplifted the insurance industry in 2017:
- Regulations/ norms aimed at revising the structure of commission or remuneration.
- Introduction of reward system.
- Guidelines on online insurance buying and digital issuance of the policy.
- Guidelines for information &cybersecurity.
- Thought leadership on the risk-oriented capital regime.
- Life insurance investment and portability norms.
As per insurance regulatory bodyInsurance Regulatory and Development Authority of India, it is mandatory to link PAN number/ Form 60 and Aadhaar for existing as well the fresh insurance plans. In the coming days, customers and stakeholders will be benefitted from this mandate.
Linking Aadhaar with insurance policies will turn out to be a great thing especially the time of claims settlement. When the unique identity of the applicant will be identifiedthere will be no room for fraudulent claims. The icing on the cake will be improvedthe speed of claim settlement which will lead to a better customer experience.
Better understanding of the Customer’s Needs
Life insurance in 2018will develop a deeper and better connect with customers. It will beat its own record as far as setting records for customer service and engagement are concerned. A giant role will be played by technology and the goals shall be accomplished. The life insurance companies will dive deep into the process of the productas well as operating innovation. The customers can get tailor-made productsas per goal-oriented financial planning.
Analytics-driven such as chatbots, artificial intelligence, e-insurance, will take a front seatwill aid the ongoing digitalizationprocess.
The life insurance industry will be driven by unit-linked insurance plans and it will contribute directly to the premium generation.
In a Nutshell
Life insurance in 2018will long longer be a 1-dimensional product. One can expect to life insurance shifting from a being product provider to being a provider of biggerand better services. The business momentum will be catalyzed by big economic reforms and that will facilitatethe growth of life insurance sector in the country.