PROJECT REPORT

POST GRADUATE DIPLOMA IN MANAGEMENT

BATCH 2019-21

Analysis of Digitalization in Insurance Industry

SUBMITTED

BY

AKSHAY MAPARA

PGD19076

IIRM
HYDERABAD
 DECLARATION
I hereby declare that the internship project on “Analysis on Digitalization in
Insurance Industry” is my original work and that no part of it has been submitted
for my degree, diploma or any other similar title.

Student sign

Place: Hyderabad Akshay Mapara

Date:
 Certification

This is to certify that the project Report titled “Analysis on Digitalization in Insurance
Industry” submitted in fulfilment for the award of Post Graduate Diploma in Management
was carried out by “Akshay Mapara” under my guidance.

Signature:

Name of Guide: Deepak Kumar

 Acknowledgement

I wish to express my sincere gratitude to Dr. T. Narasimha Rao, Managing Director,

and IIRM for providing me an opportunity to do my project work on "Analysis of
Digitalization in Insurance Industry". This project bears an imprint of many people.

I sincerely thank my project guide Prof. Mr. Deepak Kumar, Faculty IIRM for
guidance and encouragement in carrying out this project work and for her kind co-
operation in completion of the project.

Akshay Mapara
Contents
Chapter 1...............................................................................................................................................7
Executive Summary...............................................................................................................................7
Chapter 2...............................................................................................................................................9
Introduction...........................................................................................................................................9
Methodology.....................................................................................................................................13
Data....................................................................................................................................................13
Predictive Analysis of Data.........................................................................................................14
Artificial Intelligence....................................................................................................................14
Data from Social Media................................................................................................................15
Chatbots.........................................................................................................................................15
Drones............................................................................................................................................16
Chapter 3.............................................................................................................................................17
Measures Taken by Various Companies..............................................................................................17
2.1. Digital steps by ICICI Prudential Life Insurance...............................................................18
2.2. Bajaj Allianz's innovation has enabled seamless operations............................................19
2.3. TATA AIA took resort to BOT for retaining customers....................................................21
2.4. Policy bazaar along with insurers facilitate tele-medical check-ups...............................23
2.5. IRDA allows E-KYC to selected companies........................................................................24
Chapter 4.............................................................................................................................................27
Data Table...........................................................................................................................................27
Chapter No 5.......................................................................................................................................33
Interpretation......................................................................................................................................33
Chapter 6.............................................................................................................................................36
Conclusion...........................................................................................................................................36
 List of Figures
Figure Name Page no
Primary data Analysis 27
Secondary data Analysis 29
 Chapter 1
Executive Summary

Executive Summary
 The impact of digital technologies on insurance and its contribution plays a
huge part in the development of a digitalized economy. Fundamentally technology
and new evolving data sources are changing our economy and society which
promises to be a key aspect to transform the industry as well. The new technology is
helping the insurtech startup firms. Digitalization is widening the role of insurers
from loss indemnification to a broader advisory service for insured’s on how to
prevent, mitigate and manage risks. That is to say, new technologies allow insurance
to evolve from pure risk protection towards risk prediction and prevention. This
Project will enable us to analyses what role digitalization has played in business of a
company by comparing various aspects to those of pre digitalization era. The data
used for the project can be secondary data and using various analysis tools we can
make understand how it’s done. This will help us to understand the role of
digitalization in insurance industry, impact it has on the value chain, role of digital
transformation planning and its impact on insurance sector and also various
categories and challenges of values added services. One of main objective is to
analyses the actual impact it has on businesses of various company and how it can
be improved further. Therefore, by understanding we can get to know the various
development in products and the pricing it has in the market to target various
amount of people with help of the digitalization methods.
 Chapter 2
Introduction
 Introduction
The insurance industry is critical for any country’s economic development. A well-
developed insurance sector boosts risk-taking in the economy, as it provides some
security in the event of an unforeseen, loss-causing incident. It also provides much-
needed support to family members in the case of loss of life or health. Since the
assets under management of insurance companies represent long-term capital, they
also act as a pool in which to invest in long-term projects such as infrastructure
development

In business, digitalization most often refers to enabling, improving and/or

transforming business operations and/or business functions and/or business
models/processes and/or activities, by leveraging digital technologies and a
broader use and context of digitized data, turned into intelligence and actionable
knowledge, with a specific benefit in mind.

It requires digitization of information but it means more and at the very centre of it
is data, nowadays lots of data and big data. While digitization is more about systems
of record and, increasingly systems of engagement, digitalization is about systems of
engagement and systems of insight, leveraging digitized data and processes.

Insurance is a legal agreement between two parties i.e., the insurance company
(insurer) and the individual (insured). In this, the insurance company promises to
make good the losses of the insured on happening of the insured contingency. The
contingency is the event which causes a loss. It can be the death of the policyholder
or damage/destruction of the property. It’s called a contingency because there’s an
uncertainty regarding happening of the event. The insured pays a premium in return
for the promise made by the insurer.

Just as the Industrial revolution did one and half centuries ago, even now the digital
revolution is reshaping the way we live our lives and the way we work at our work
places. It is also forcing a fundamental transformation of business – changing the
relationship with customers, bringing new entrants and their disruptive
technologies, driving new channels, products and services, breaking down the walls
between industries and, in many cases, forcing a basic rethink of the business model.
The speed of change makes it almost impossible to predict the future with any
degree of certainty. In such a climate, insurance company have to act fast It must
enter the digital world as quickly as possible and use digital technology with all its
benefits so that it can genie the benefits of this technology, digital technology has the
potential to reshape the insurance industry as it has already reshaped many
industries, such as mobile banking, e-books, and other innovations related to digital
technology, such as financial services, travel, printing and publishing. Despite
expectations that large and lucrative insurance companies may turn to the
technology in their day-to-day operations, we do not see any decisive decisions or
even indications of this trend, especially in the Arab insurance industry, due to a
widespread illiteracy in the field of insurance awareness or a decline in the degree of
insurance culture in the Arab countries, or because of the scarcity of insurance
expertise or the absence of marketing capacity for insurance products, the almost
complete absence in the application of digital technology in insurance transactions is
one of the most important obstacles in the way Insurance sector update. If Western
insurance experts assert that the most important benefits of digital technology meet
the needs of customers and reduce public or administrative expenses, which all
insurance companies work for at least profitability, we do not see on the horizon
indicates the attempt to prepare local competencies technically and professionally to
apply This technology, all indicators point to the existence of huge opportunities in
the field of information technology that has not yet been exploited by the global and
Arab insurance companies, although the full mechanization of the insurance
companies will take a compulsory path in the next stage, especially with the decline
of manual handling of information and data and increasing technological dealings
through the existence of a website for each Insurance company, and display its
products on it mainly in the future. In addition, digital marketing is able to issue
easy and simple insurance documents, which is indicative of the lack of human
intervention in the insurance process in the coming stages.
This lockdown has led traditional insurers such as HDFC Ergo Health
Insurance, Religare, Max Bupa, HDFC Life, Max Life and Tata AIA to expand their
digital operations to their customers. Tata AIA Life Insurance has resorted to AI
BOTS to handle claim related issues. During this unique scenario, Policybazaar.com,
along with major insurance companies, is making sure that medical check-ups are
made available to potential clients via a mobile call, commonly known as tele-
medical.

This Lockdown is resulting in the fast-forwarding of digitization of the insurance

industry which will ultimately transform the customer and agent interfaces of the
insurance companies into an efficient, paperless and a more seamless system. The
use of BOT Chats, AI, Portals, Mobile apps has received a huge boost during this
pandemic. This digitization of the industry will not only help it to survive a similar
pandemic like the COVID-19 situation in future but will also help in increasing its
penetration in the Indian market due to the increasing penetration of internet (with
the number of users in India expected to rise from 429 million in 2017 to 829 million
by 2021 at the rate of 17.9%). The use of this digital techniques will also help the
industry in breaking the traditional barriers like product recognition, narrow
customer touchpoints, access to information, quality of resources and payment and
will make the market more influential and competitive.

The tasks of the research:

To explain the nature of digitalization in insurance and to show the place of ICT in
this process.
To argue the possibility of using the financial statement data (IT expenses and
software gross value) for
Analysis of digital activity in the insurance company
To show the relationship between selected parameters of digitalization (IT expenses
and software value) in insurance and their activity (growth of premium and
acquisition costs). In compliance with global trends that were accepted, in the article
we analysed the following hypothesis:
The insurance companies increase their expenses for software and information
technologies if their insurance premiums rise.
The insurance companies increase their expenses for software and information
technologies if their acquisition expenses rise.
The insurance companies start to spend more money on software and IT.

Methodology
The report states that how digitalization has Impact on business of insurance
industry. Considering the various reports of IRDAI containing the data of various
channel through which the business is carried out. Now using this data, we can
analyze how the business is growing also taking into consideration the various
methods which are being implemented by different companies for digital policies
done through the digital channels.

The main aim of Information and communication technologies in the

insurance market is to create and use the knowledge and exchange the information.
The role of ICT has been changing: previously ICT was the instrument for data
processing, but after the implementation of Big Data in the economy, it has become
the instrument for creating new types of data. The insurance industry is totally
dependent on the ability to convert raw data into intelligence – intelligence about
customers, markets, competitors, and business environment. Modern insurance
business looks for opportunities to reduce the asymmetry of information under the
condition of the rising cost of risks. So, insurers are looking for new knowledge
about the probability of the risks.
In this we would also look at various strategies which are being implemented
by different companies for implementing the digitalization process of insurance
policy sales.

Data
The secondary source of information is taken as data from IRDAI website
Annual report for various analysis which are being required in the report. The only
source of information on which the report is based is secondary information
collected through various websites and IRDAI report.
Predictive Analysis of Data

Most of the insurance companies collect a lot of data concerning their customers and
other business components. Proper analysis is this data is utilized to achieve better
forecasts regarding:

 Identifying and meeting current and future business insurance requirements

and trends.
 The risk factors associated with a particular business or insurance.
 Identify the risk of insurance cancellations from business customers.
 Assessing the risk of fraudulent claims from businesses.
 Managing various types of claims and recognizing any patterns.
 Getting new customers on board with an analysis of trends in business
insurance requirements.

Artificial Intelligence

Most businesses look for personalized solutions to their insurance requirements.

Every business has different needs when it comes to insurance based on the size and
nature of the business. AI facilitates insurance advisors to design solutions to meet
such unique client requirements.

With the help of AI, insurance companies can transform the insurance underwriting
process. AI can also be used to improve the claims cycle efficiently by accessing large
amounts of data within a short time and erase the chances of human error.
Businesses can use the insurance agency’s AI-based system to accurately report
claims.

Currently, the use of AI is limited to achieving better operational efficiency and

better customer experience. However, in the future, AI will also have an impact on
the identification and assessment of insurance risks for businesses. The automation
of claims processing through digital files stored in the cloud can transform the
process significantly. AI would also affect profitability by identifying new sources of
revenue.

Data from Social Media

The initial use of social media for marketing and advertising has evolved into many
other interesting tools for business insurance agencies. Data obtained from social
media is utilized to improve the assessment of risks for businesses. Social media data
can also be used to increase the detection of fraudulent claims. New ways of
handling social media can improve customer communication and experience.

Many insurance companies have shifted their entire customer interactions and
support over to social media. Businesses can get insurance quotations, file claims,
and place any other kind of request for services via social media.

Insurance companies can use social media to authenticate claims and filter them for
fraudulent ones. Many social monitoring tools can be a part of the process of
investigating claims. Insurers can watch the social media activities of the businesses
who have filed for claims for any red flags.

Chatbots

Many companies carry out the majority of their customer communications via
chatbots these days. It is estimated that by 2025 more than 90% of all customer
communications will be handled by chatbots.

Chatbots are AI-enabled that can have intelligent communication with the customers
and help them with the majority of the commonly faced problems. Chatbots save an
insurance company a lot of time and resources. These bots will be able to complete
the common processes like policy application, filing claims, and many others.
Human interactions will be reserved for complicated requirements and cases.
Drones

Even though insurance companies have limited use for drones at the moment,
drones can be utilized extensively for risk assessment and calculation. Drones can be
used to survey common business premises like factories, large spread-out businesses
like plants and farms, and other businesses located in places difficult to reach by
humans. The use of drones can save insurers a lot of money associated with
assessing the risk factors of a business.

The latest developments in technology can help insurance providers increase

revenue and profitability. They can also help the businesses to obtain and manage
their policies effectively as well as ease their claims.
 Chapter 3
Measures Taken by Various Companies
Various Steps by various companies with
Digitalization
This COVID-19 was a unique situation that is faced by the Insurance companies.
Traditionally in India majority of the insurance is sold by physical interaction
between agents and customers, the COVID-19 and the lockdown because it gave rise
to a huge obstacle in the operations of the companies. To overcome this obstacle and
maintain smooth functioning various companies, web aggregators took refuge to
mobile apps, AI Chatbots, Website/Portals etc. that helped them remotely serve
their customers and their agents as well.

2.1. Digital steps by ICICI Prudential Life Insurance

While Covid-19 continued to pose a range of specific challenges, ICICI Prudential

Life Insurance was one of the companies which have committed itself into taking
agile steps to accelerate digital innovation and speed up decision-making. The
offices of the ICICI Prudential Life Insurance Company were operating but with
minimal personnel. However, the company took measures in advance so that
customers can get information about their policies and can get access to necessary
services.

The Company encouraged its customers to avoid unnecessary travels and use the
company’s digital tools form the safety of their homes. They encouraged their
customers to place their service requests via WhatsApp, Website, Chatbot Logo,
Smartphone app - 'ICICI Prudential Life', Email and Call Centre.

The Company's fully equipped digital platform provided policyholders with 24×7
access to policy information. In addition to policy-related information, policyholders
have been able to update their records such as contact details, nominee, etc. They
have been able to conduct transactions such as payment of renewal premiums,
setting or changing standing instructions, transferring fund etc. from the comfort of
their homes.

Statements, such as tax certificates, renewal receipts, were made available by clicking
the button. The customers were also able to upload documents and could determine
the status of their applications or requests on digital platforms. Annuity consumers
were also able to digitally check their existence and continued to get their annuities
in their accounts.

The Claim settlement process also remained unaffected. The claimants were able to
access to those above-mentioned digital platforms to make death and/or health
claims. The status of the claims could be viewed online. The death claims entitled to
be settled under the claims were resolved one day after receiving the claims.

2.2. Bajaj Allianz's innovation has enabled seamless operations

Although the pandemic has given rise to new steps to be adopted as a sign of
business stability, Bajaj Allianz General Insurance has a subtle twist on its
streamlined activities. Over the course of a few years, the IT team of the company
has taken several strategic decisions and boosted innovation that has helped the
company during the lockdown. The company brought in certain strategic changes
like encouraging work from home and remote working, using collaborative tools
which helped them prepare for the pandemic.

The surge in digital tools and transactions

Typically, for any amount of motor insurance claims, the customer had to share the
original hard copies of the claims documents and perform a physical inspection with
the insurance provider in order to make his / her insurance claims. As a result, it
takes a period of 5-7 days for the insurance provider to review the paperwork,
conduct the actual examination of the car and make the pay-out to the customer. As
a result, it takes 5-7 days for the insurer to review the paperwork, conduct the actual
examination of the car and make the pay-out to the customer.

The internal survey at Bajaj Allianz General Insurance found out that more than 70%
of the claims regarding motor insurance received by the firm were of Rs. 20,000 or
less and were mainly basic and uncomplicated in nature. Based on this loss data
repository, ‘Motor on The Spot’ was introduced by the company. This enabled the
motor customers to settle their claims comfortably and then reduce the claims
settlement time from days to minutes.

Customers were able to self-register, inspect and resolve motor insurance claims.
The customer merely needed to upload the photos of the broken vehicle parts and
submit the correct claims documentation on the website, which could be accessed
via the company's self-service smartphone app –'Caringly Yours'.

The facility integrates data analytics and cloud-based technologies developed in-
house by the IT team of the company. The home-grown data analytics tool compares
the images obtained from the customer with the current data archive and suggests
liability to the customer within 30 minutes.

Photos of defective vehicle parts obtained from the insured shall be kept in the
encrypted cloud. Standard codes assigned by the system to each image and then
compares each of them to more than 5 lakh codes from existing repositories. After
the comparative study, the claim module indicates the claim amount to the insured.
And after receiving the acceptance of the liability amount from the insured, the
amount is transacted to the insured’s account instantly.

The disruptive service offered by Motor OTS has not only reduced the turnaround
time from 5-7 days to 30 minutes, but it also reduced the hassles of document in-
warding and claim registration which helped the customers get their services from
the safety of their houses during this lockdown.

AI-Driven Chatbot

The company's artificial intelligence-driven Chat-bot BOING has also come in handy
with digital tools witnessing a spike in use. Utilizing the platform, one can file a
motor claim, obtain a soft copy of the policy, check the status of the policy, check the
status of the claim, locate the brand of the company, locate empaneled hospitals and
garages, etc.

The company top management thinks the company needs to do a mountain-load of

progress to make easy the post lockdown period. The data and application security
strategy has to be revisited for secure operation in the above environment in the long
term and the user awareness has to go up significantly.

2.3. TATA AIA took resort to BOT for retaining customers

Tata AIA and its IT team moved seamlessly to digital support in the early days of
the lockdown, when businesses began to cling to the idea of losing customers. The
company has moved its major operations internally and for sales to digital
platforms.
Initially, they started 24/7 bot support, which is further supported by customer
agents for more queries. IVR service has been rolled out with manual back-up
support from external agents working from home. WhatsApp, SMS are among the
other services that are specifically designed to manage customer requests.

Tata AIA's online distribution portal allowed its distributors and their customers to
connect and purchase policies remotely. Their field teams have been equipped with
digital tools that they have already used for post-sales video calls. These enablers
helped them to connect with their customers effortlessly as it enabled personal
contact without venturing out of their homes.

Using these electronic tools and video conferences, the company's advisors can
identify client expectations and provide suitable personalized solutions. They can
send quotations electronically and request approvals from customers. They can
assess how well the customer has understood the policy terms and ensure that they
get what they need. The customer can initiate the buying procedure once he/she
understands the terms and can make the payments digitally. The company always
had the after-sales video call feature but now the entire process from the time of
initiation is carried-out remotely in this pandemic situation. This end-to-end
purchase feature, which is enabled via digital platforms, also eliminates the
possibility of mis selling.

 Tata AIA, going forward, is also planning several online initiatives for their
distributors and advisors to help engage with their customers more seamlessly. They
allowed contact with their employees and partners via the Zoom and MS team
platforms. They offered Bot calling, which is a great feature that addresses multiple
customer requirements. They have now allowed Interactive Voice Response (IVR)
calling from home so that this service continues to be usable, but it is continuously
urging people to use other modes such as text, SMS, WhatsApp and email.

The platform has multiple options for digital payments, such as Jio Money, Paytm,
EBPP (electronic bill processing and payments), IMPS, Wallets, ICICI Bank
QuickPay, as well as online payment of protection premiums, as also through EMIs.

2.4. Policy bazaar along with insurers facilitate tele-medical check-ups

In those unprecedented times when the country was shut down, Policybazaar.com,
along with leading insurance companies such as ICICI Prudential Life, Max Life and
GNP MetLife, Religare, Max Bupa, Max Health Insurance, Star Health, HDFC Ergo,
HDFC Life and Tata AIA, ensured that prospective consumers will have access to
medical checks with a telephone call, also known as tele-medical. This move
eliminates the possibility of direct physical interaction between clients and
physicians for medical, which encourages insurers to continue to underwrite on the
phone. For the uninitiated, insurance was included in the list of critical coverage
during the latest lockout. However, insurers hold the right to decline claims if
customer disclosures are found incorrect. Where earlier the customer required to
visit a doctor to get the standard check-up done will get replaced by the tele-medical
process.

Tele-medical is a method that eliminates the requirement to see a doctor or a

diagnostic center with a telephone call organized by the insurers, where queries
pertaining to current medical conditions and diseases are posed by a licensed
practitioner. Industry analysts suggested that digital channels like Policy bazaar
played a leading role in the delivery of insurance during the lockdown. The Tele-
medical facility was initiated for both health and term insurance policies.
The tele-medical for insurance consultancy was being evaluated on a limited scale by
selected insurers over the last one year in a pilot process, the need for full-scale
coverage was required due to the continuing Covid-19 pandemic.

Since the pre-policy medical check-ups that are normally conducted by the insurers
are a costly affair for the insurers, this initiative can help in boosting the utilization
of tele-underwriting more seriously. If a licensed medical practitioner has a casual
telephone chat with customers about their actual health situation, the insurer will be
able to learn something about the current health status of the customer and this
process is also a lot cheaper than the pre-policy medical check-ups (PPMC).

2.5. IRDA allows E-KYC to selected companies

Insurance Regulatory and Development Authority of India (Irdai) has allowed

insurance firms to use Aadhaar-based authentication services to complete the
Know Your Customer (KYC) process.

Customers would no longer need to attend insurance offices or consult with

brokers to have the required identification documentation, such as photos or proof
of address. Nevertheless, consumers will, if required have to submit their proof of
income and a medical statement.

In the environment of social distancing, this helped reducing the requirements for
physical KYC. eKYC or Digital KYC is a paperless Aadhaar-based process to meet
the customer’s KYC requirements while opening a bank account or investing in
mutual funds. Today, the consumer may use eKYC to buy Insurance policies. This
move will go a long way to encouraging insurance providers to fully support the
Digital India initiative.
However, Irdai only approved a list of companies that could start using the eKYC
method in the coming days. Here is the entire list of insurance providers that will
consider eKYC from now on.

1)Bajaj Allianz Life Insurance Company Limited

2)Bharti AXA Life Insurance Company Limited
3)Exide Life Insurance Company Limited
4)HDFC Life Insurance Company Limited
5)ICICI Prudential Life Insurance Company Limited
6)India First Life Insurance Company Limited
7)Max Life Insurance Company Limited
8)PNB MetLife India Insurance Company Limited
9)SBI Life Insurance Company Limited
10)Future Generali India Life Insurance Company Limited
11)Reliance Nippon Life Insurance Company Limited
12)Aegon Life Insurance Company Limited
13)Shriram Life Insurance Company Limited
14)Aditya Birla Sun Life Insurance Company Limited
15)Pramerica Life Insurance Company Limited
16)Kotak Mahindra Life Insurance Company Limited
17)Star Union Daichi Life Insurance Company Limited
18)IDBI Federal Life Insurance Company Limited
19)Edelweiss Tokio Life Insurance Company Limited
20)Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited
21)Kotak Mahindra General Insurance Company Limited
22)Future Generali India Insurance Company Limited
23)Manipal Cigna Health Insurance Company Limited
24)ACKO General Insurance Limited
25)Religare Health Insurance Company Limited
26)Royal Sundaram General Insurance Company Limited
28)HDFC Ergo General Insurance Company Limited
29)HDFC ERGO Health Insurance Limited
The use of technology in the insurance industry, just like any other industry has seen
exponential growth in the past decade. Advances in technology are indispensable
components of the insurance industry that now benefits insurance agencies and their
customers equally. Customers are more inclined towards getting quotes for their
insurance requirements online. They can also manage their coverages with a mobile
application.

The use of technology is going to see an immense amount of growth in the coming
times. Many insurance companies and insured businesses are already using some of
these instruments for their business purposes. While insurers are using technology
to gain an edge over the competition, business owners employ these tools to
improve the essential nature of workers’ compensation coverage, auto insurance
coverage, general liability insurance coverage, and the coverages for the other
business-related insurances.

For example, technology can be used by businesses and employees in the following
ways for insurance purposes:

 Technology can enable employers to create systems that can be easily used by
their employees to communicate efficiently with their employers and other
co-workers.
 Technology can be used to educate employees about various risks.
 Employees can use easy to use technology to report accidents and injuries
faster and file for workers’ compensation.
 It can be used to manage workers’ compensation claims and other business
insurance claims.
 Telenursing and telemedicine can be used to provide emergency medical care.
 Chapter 4
Data Table

Primary Data Analysis

Secondary Data Analysis
Individual Life Insurance

NO OF POLICIES
45000000

40000000

35000000

30000000

25000000

20000000

15000000

10000000

5000000

0
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

Individual Agents Corporate Agents-Banks Corporate Agents- Others*

Brokers Direct Selling Online
Others
 AMOUNT OF PREMIUM( Figures in crores)
120000

100000

80000

60000

40000

20000

0
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

Individual Agents Corporate Agents-Banks Corporate Agents- Others*

Brokers Direct Selling Online
Others

Group Life
General Insurance

General Insurance
25000

20000

15000

10000

5000

0
re o)
-5000 Fi rg l)
ul n
(C
a (H tio in
g e
e e ia er ag rty ty
rin rin Av in
e m Pa ili op it
a M
a g Da ird ab Cr ed us
M En n
Th Li Cr eo
Ow or l a n
or ot el
ot M is c
M M

Individual 2018-19 Individual 2019-20 Corporate Agents Bank 2018-19

Corporate Agents Bank 2019-20 Corporate Agents Others 2018-19 Corporate Agents Others 2019-20
Brokers Arrangement 2018-19 Brokers Arrangement 2019-20 Referral Business 2018-19
Referral Business 2019-20 Direct Insurance 2018-19 Direct Insurance 2019-20
Micro Agents 2018-19 Micro Agents 2019-20 Others 2018-19
Others 2019-20
 Chapter No 5
Interpretation

Overall Impact of Digitalization on Insurance Sector

The importance of the digitalization of the insurance industry can be as discussed
below:
1- Minimizing paper documents:
In digital transformation, insurance company’s reliance on electronic transactions is
executed without the need to use paper in the sales of documents or the number of
claims. Contracts can also be stamped with digital signatures. This called on
international organizations to establish a legal framework for e-commerce and to
sign and pay electronically20.
2- Narrowing the distance between companies:
Digital transformation narrowing the distance between the giant and small
companies in terms of production and distribution and human competencies; so that
small companies can access the Internet to the domestic market and international
also without having the infrastructure such as large multinational companies and
make them stand on an equal footing with These companies are in competition. This
is due to the use of the same method in the execution of purchases and sales, filing
claims and providing various types of services electronically.
3- Fighting fraud is easier with technology:
As processes speed up in order to provide better and faster service to customers, it is
logical to expect that the number of fraudsters or fraudulent claims that are not
discovered by claims handling will also increase. But technology also helps in this
area, often without disturbing the customer experience. The basis of this is data and
the possibility of using enormous quantities of data very quickly and with reliable
results, for example for making predictive models. It is possible to make the
automated claims handling process fast and friendly for honest customers. At the
same time, it is possible to simplify processes, reduce risks and prevent and detect
more fraud. 32% of insurers now use technology for fraud prevention. 48% of
insurers use it to determine the level of premiums and 45% use it to support
underwriting.

4- Rural areas:
Insurance companies have access to individuals in less developed areas and rural
areas and provide insurance services that can’t be available to them in normal ways
and without having to travel away to them (direct contact).

5- Visual screening during the claims process:

Visual screening can be very valuable for claims handling and fraud prevention,
such as the automated assessment of photos and videos of objects and damage. This
makes the assessment objective and speeds up the process. It is possible to identify
striking features or to make comparisons with similar objects via various sources.
This can bring fraud to light. 29% of insurers now use such a technique. In the past
two years, this percentage has not increased, but knowledge of the technique has.
Insurers are also increasingly convinced of its value and 20% intend to start using
the technique in the coming year.
 Chapter 6
Conclusion

Conclusion
So, the overall project contains various reasons both from customer as well as
Insurer point of view. And people in urban areas who are more tech savvy would
like to purchase insurance online rather than the other modes as it is easy to
communication and direct intervene between the company and customer. Also, it
can be stated the digitalization has helped the companies to function various roles in
industry much easier with help of new technology and faster acknowledge of
process which has being possible with of this technology.

Basically, as also considering the amount of Information technology that is growing

and people wanting to majority of things online. This ratio of insurance being sold
through online is growing day by day. With some companies even offering some
special schemes for online customers purchasing their policy.

BIBLIOGRAPHY
 Irdai website
 Irdai handbook data 2019-20
 “The impact of digital technologies on insurance industry in light of digital
transformation” research paper
 “A study on digitalization of insurance industry: customer’s opportunities
and challenges”

 article “Digital and cultural transformation in the insurance industry”

 Google.

 Digital transformation in the insurance sector