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COVID-19: Enabling Digital Transformation In The Insurance Sector

The corona outbreak has enabled the insurance sector towards a digital transformation. But is this the norm for the future? Here's what an expert has to say:

The Policy Bazaar Show is a series that decodes the grey areas of purchasing insurance. Through the 26-episode series, the show will highlight and discuss a magnitude of topics essential to everyone trying to secure their future. From purchasing the right cover to switching policies while shifting jobs, to ensuring a comprehensive child cover, insurance experts deliberate, simplify and, throw light on the complexities of purchasing insurance in India.

In this week's episode, our eminent host, Vivek Law will be talking to Santosh Agarwal, Chief Business Officer, about the recent transition of the insurance sector towards a digital transformation. 

COVID Impact – Insurance Buying going the digital way

Term insurance acts as umbrella protection for any individual. The factors that one needs to have in mind while deciding for a cover is the age and income of the individual. There is a constant change in people’s income levels and the liabilities vary among people depending on many factors. According to a thumb rule, an individual, who is lesser than 40 years of age, needs to buy a cover that is ideally 15-20 times the income cover. 

ALSO WATCH: Expert Speak: Health Insurance In Times Of Coronavirus

Owing to the recent pandemic, the traffic for insurance sales has moved up to an unprecedented 30%. People who had been procrastinating about insurance choices have been prioritizing health insurance packages in the last few months. The transition of the insurance sector towards digitization has made all the insurance-related processes seamless. It has also in many cases, reducing the steps involved in insurance buying or claiming.

ALSO WATCH: #ProtectKarBefikar In The Times Of A Pandemic

Most companies have gone digital during the corona outbreak. Digitization has simply made the claim settlement process easy and customer friendly in lieu of the IRDAI guidelines that ask the insurance sector to have a more customer-centric approach. Grace periods of 30 days are being provided to customers for their due premiums.

The process of buying insurance online has been simplified into the following:

  • Customer applies for life insurance online
  • Credit history with bureau taken into consideration
  • The income of the policy buyer considered
  • In case of a medical condition, telephonic or video consultation can be done with the doctor
  • Post consultation, life insurance policy of up to 2 crores can be issued

The Myth Buster:

There is a delay in the issuance of policies if there is no physical medical test done

Today, an insurance policy can be bought without the said medical tests. However, a thorough check is done to assess the risk factors involved. A consumer with low risk is more eligible for the insurance. 

Watch the episode for more insights on the digital transformation in the insurance sector.

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