By Nirjhar Majumdar
The insurance coverage sector is poised for a digital transformation in advertising and marketing, underwriting and processing of claims. More and more policies are getting sold on the web. Services are getting created obtainable in self-service mode on client portals. Payments of renewal premiums are also getting created through digital medium in growing numbers. This is not just simply because of a pandemic circumstance forcing folks to opt for digital channels. This is mainly simply because digital channels are maintaining operational expenses of insurers low and client encounter higher. After all, it is the encounter that matters more than just “insurance cover”. Under such situations, the query is what the part of insurance coverage agents can be in this digital era.
Customer acquisition
Insurance agents can nevertheless play a really critical part each in the region of client acquisition and client retention. Insurance in basic and life insurance coverage, in certain, is not appropriately understood by most Indians even now. Digital advertising and marketing, insuretech and artificial intelligence (AI) can go a lengthy way in growing insurance coverage penetration. But these alone can not reduce the ice. In life insurance coverage, one-on-one interaction is nevertheless an integral component of the sales course of action in India even in the simplest of items like term assurance and assured return plans.
Insurance agents can play an critical part in enhancing insurance coverage penetration of the nation by growing the persistency level. In truth, 61-month persistency ratios for nearly all insurers are languishing properly under 50% when the international benchmark in 65%. This is a sad commentary on the state of the sector.
AI and Machine Learning (ML) enabled Retention Analytics can assist insurers in acquiring several warning signals just before policies essentially lapse or get surrendered.
Most agents have a habit of maintaining speak to only with the shoppers they contemplate “valuable”. The truth is all shoppers are worthwhile and the values boost with the boost in the age of shoppers, simply because life insurance coverage demands manifest appropriately only when a individual is clear about the economic responsibilities he has to shoulder in life. Agents really should devote more time catering to the localised demands. Many policies lapse simply because their agents have been terminated or have even left the sector. Some shoppers have unresolved challenges with their agents.
Customer satisfaction
Insurers really should give top rated priority in taking care of such shoppers, at least in the close to term. Insurers really should devote as considerably time in retaining shoppers as they devote in acquiring shoppers. Better persistency implies greater solvency ratio and availability of considerably greater investable funds for investment. That can fetch greater returns for the shoppers. Although life insurance coverage is not the ideal automobile to make earnings on “investments”, in our nation, folks will continue to look for returns for some more time. Better engagement is essential to convey the message of life insurance coverage.
That can not occur only by means of digital channels. Insurance agents can play a crucial part in positioning life insurance coverage appropriately in the economic industry. For that, a new brand of agents could have to be created. The agents are supposed to overview the life insurance coverage demands from time to time on the basis of the altering profiles of shoppers.
AI based technologies can recognize folks who can be accurate representatives of the insurers. The insurers have to choose them up from the industry and groom them properly. These youths can be the insurance coverage agents of tomorrow. New generation youths will likely have numerous careers at a time. Some of them are confident to uncover passion in promoting insurance coverage. These agents will be more proficient in acquiring shoppers, retaining them and meeting their many insurance coverage demands for the duration of the whole life cycle of the policies.
The writer is assistant secretary, Kolkata Audit Centre, LIC of India