Digital adoption, key for life insurance companies

The life insurance industry faced the brunt of elevated claims during the pandemic, but the period also brought with it increased awareness regarding the need for life insurance and accelerated digital adoption across industry players.

In addition, 2022 also saw a slew of regulatory reforms, including amendments to the IRDAI sandbox, aimed at driving insurance penetration, enhancing customer centricity and leveraging the growing digitalisation of the industry.

Recent initiatives such as opening of e-insurance accounts and setting up the Bima Sugam platform will aid dematerialisation of insurance policies and help integrate the entire insurance ecosystem, industry participants said.

“As we move into 2023, digital transformation, product customisations and innovations, and service enhancements, are likely to continue as the industry looks to further build upon the momentum achieved this year,” said Vighnesh Shahane, MD and CEO, Ageas Federal Life Insurance.

Owing to high interest rates over the last two years, the life insurance sector has been witnessing a surge in traditional products, especially guaranteed plans, which in turn helped life insurers’ improve their margins.