‘Armed with technology, will tackle disruptions and adapt’
Team Draft | Mumbai
“Insurance companies are going beyond data analytics and mobile technologies to venture into more new-age tech segments that are already being adopted by InsurTech players,” said Sanjiv Bajaj, Chairman, CII National Committee of Insurance and Pensions and Bajaj Finserv Managing Director while making the welcome address as Chairman of the 20th CII Insurance and Pensions Summit held at Hotel Taj Mahal Palace on September 11, 2018.
“Robotics process automation (RPA), for example, is already being leveraged to bolster back office operations as well as integrate and connect previously siloed systems, while AI is playing a major role in simplifying traditionally cumbersome claims and underwriting processes. Blockchain technology is also set to revolutionise the industry through process automation, streamlining of data collection and payments, and aggregation and allocation of risks and losses,” he added.
In the inaugural address, Chief Guest and Insurance Regulatory and Development Authority of India Chairman Dr Subhash Khuntia said, “The products in the Insurance Sector should cater to and protect the poor, who need support the most, and not just the rich. He also added that Industry players should focus on making insurance policies more consumer centric and sustainable.”
Aware of the considerable impact that technology-led disruptions have had on the sector, Insurance CEOs believe that changes in core technologies of production and services will be a major disruptive trend that will impact their business over the next five years. Insurance firms are pro-actively looking to invest in these technologies to stay ahead of the curve. The CII Summit in the direction was pertinent and, more importantly, timely in the respect.
According to the CII-Pricewaterhouse Coopers Report on ‘Indian Insurance and Pensions Sector: Disruptions, Adaptations and Realignments,’ released at the occasion, while data analytics and mobile technologies continue to be top of the priority list, Robotic Process Automation (RPA), Artificial Intelligence (AI), Cyber-security and Internet- of- things (IoT) technologies are also perceived as relevant technologies that insurance companies are investing in during the coming year.
During a presentation of the CII-Pricewaterhouse Cooper Report, PwC India Partner & Leader – Insurance Joydeep K. Roy said, “Amidst the once-in-a-lifetime opportunities from technology-led growth, insurance companies will need to ensure that adequate safeguards and security arrangements are in place to tackle the risks and threats that accompany technology adoption.”
“Cyber security is a very real need for players across the FS space and insurance companies will need to look at an adaptive approach to developing necessary capabilities. These developments would fit into a larger comprehensive governance, risk and compliance (GRC) framework that firms would need to develop for a holistic business strategy,” added Mr Roy.
The report maintains that besides developing their own capabilities, Insurance players are also realising the benefits of tapping into the eco-system of technology and InsurTech players prevalent in the industry. They are looking to partner with external providers to develop relevant skills to compete within the space. This also aligns with the direction envisaged by the regulators about setting up a Regulatory Sandbox to promote an environment of innovation and collaboration between incumbents and FinTechs.
Co-Chair of the Committee and Vice Chairman and Max Life Insurance Co.Ltd., MD, Rajesh Sud said, “Now, Insurers have started putting disruption at the core of their strategies. A steady shift is seen towards an ecosystem-based model with large number of insurers partnering with innovators in recent years to create technology disruptions for impact. The adoption of InsurTech for in-depth customers’ needs assessment, revenue generation and cost optimization will be the key drivers of success in the sector. Over the next few years, we will see momentum in the sector propelled by investments in technology like Big Data Analytics, Artificial Intelligence, Robotics and the Internet of Things that will be leveraged for better customer experience.”
In the pre-lunch lesion on ‘Digital Disruption and what it means for the insurance sector’, IndiaFirst Life Insurance Company’s Managing Director and CEO R.M. Vishakha said, “The ease of technology has bridged all kinds of gaps that cause digital disruption. However, technology comes at a high cost and that needs to be tackled too.”
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“Insurance companies are going beyond data analytics and mobile technologies to venture into more new-age tech segments that are already being adopted by InsurTech players,” said Sanjiv Bajaj, Chairman, CII National Committee of Insurance and Pensions and Bajaj Finserv Managing Director while making the welcome address as Chairman of the 20th CII Insurance and Pensions Summit held at Hotel Taj Mahal Palace on September 11, 2018.
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| The 20th CII Insurance and Pensions Summit underway at The Taj Mahal Palace Hotel in Mumbai |
“Robotics process automation (RPA), for example, is already being leveraged to bolster back office operations as well as integrate and connect previously siloed systems, while AI is playing a major role in simplifying traditionally cumbersome claims and underwriting processes. Blockchain technology is also set to revolutionise the industry through process automation, streamlining of data collection and payments, and aggregation and allocation of risks and losses,” he added.
In the inaugural address, Chief Guest and Insurance Regulatory and Development Authority of India Chairman Dr Subhash Khuntia said, “The products in the Insurance Sector should cater to and protect the poor, who need support the most, and not just the rich. He also added that Industry players should focus on making insurance policies more consumer centric and sustainable.”
 |
| Chief Guest Dr Subhash Khuntia making the inaugural address |
Aware of the considerable impact that technology-led disruptions have had on the sector, Insurance CEOs believe that changes in core technologies of production and services will be a major disruptive trend that will impact their business over the next five years. Insurance firms are pro-actively looking to invest in these technologies to stay ahead of the curve. The CII Summit in the direction was pertinent and, more importantly, timely in the respect.
According to the CII-Pricewaterhouse Coopers Report on ‘Indian Insurance and Pensions Sector: Disruptions, Adaptations and Realignments,’ released at the occasion, while data analytics and mobile technologies continue to be top of the priority list, Robotic Process Automation (RPA), Artificial Intelligence (AI), Cyber-security and Internet- of- things (IoT) technologies are also perceived as relevant technologies that insurance companies are investing in during the coming year.
During a presentation of the CII-Pricewaterhouse Cooper Report, PwC India Partner & Leader – Insurance Joydeep K. Roy said, “Amidst the once-in-a-lifetime opportunities from technology-led growth, insurance companies will need to ensure that adequate safeguards and security arrangements are in place to tackle the risks and threats that accompany technology adoption.”
 |
| PwC India Partner & Leader – Insurance, Joydeep Roy presenting the PwC report |
“Cyber security is a very real need for players across the FS space and insurance companies will need to look at an adaptive approach to developing necessary capabilities. These developments would fit into a larger comprehensive governance, risk and compliance (GRC) framework that firms would need to develop for a holistic business strategy,” added Mr Roy.
The report maintains that besides developing their own capabilities, Insurance players are also realising the benefits of tapping into the eco-system of technology and InsurTech players prevalent in the industry. They are looking to partner with external providers to develop relevant skills to compete within the space. This also aligns with the direction envisaged by the regulators about setting up a Regulatory Sandbox to promote an environment of innovation and collaboration between incumbents and FinTechs.
Co-Chair of the Committee and Vice Chairman and Max Life Insurance Co.Ltd., MD, Rajesh Sud said, “Now, Insurers have started putting disruption at the core of their strategies. A steady shift is seen towards an ecosystem-based model with large number of insurers partnering with innovators in recent years to create technology disruptions for impact. The adoption of InsurTech for in-depth customers’ needs assessment, revenue generation and cost optimization will be the key drivers of success in the sector. Over the next few years, we will see momentum in the sector propelled by investments in technology like Big Data Analytics, Artificial Intelligence, Robotics and the Internet of Things that will be leveraged for better customer experience.”
In the pre-lunch lesion on ‘Digital Disruption and what it means for the insurance sector’, IndiaFirst Life Insurance Company’s Managing Director and CEO R.M. Vishakha said, “The ease of technology has bridged all kinds of gaps that cause digital disruption. However, technology comes at a high cost and that needs to be tackled too.”
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