Product, Process & Promise: Bridging the trust deficit for the policyholder
Debasish Panda, Chairman, Insurance Regulatory & Development Authority of India (IRDAI) at 25th edition of the CII Insurance & Pensions Summit
FinTech BizNews Service
Mumbai, 22 October, 2024: The 17th Edition of Health Insurance Summit 2024 was held in Mumbai on October 22, 2024, on the theme “Health Insurance for all by 2047”. The inaugural session was addressed by the Chief Guest, Shri Debasish Panda, Chairman, Insurance Regulatory & Development Authority of India (IRDAI). He encouraged the insurance sector to embrace digitalisation, new technologies and adopt a consumer-centric ethos. He emphasized that insurance should be a promise with trust and transparency being its pillars.
He advocated for the simplification of Products, Processes and Promise with products being designed to reflect understanding and addressing gaps in traditional areas. He emphasized that underserved markets like MSME, agriculture should be catered with personalized products for technology driven lives and inclusive and comprehensive coverage. Customers need to be provided with frictionless and seamless claim processes, he added.
Shri Siddhartha Mohanty, CEO & MD, Life Insurance Corporation of India said, “The insurance penetration is increasing with rising income levels and the Government taking steps for ensuring the underserved communities are insured. The penetration of micro insurance is increasing thanks to digital tools available.” He emphasized that the right mix of policies will ensure insurance and technology integration with new distribution channels increasing outreach. He highlighted that regulatory support is essential with a focus on prioritizing cyber security with innovation, regulation, and collaboration empowering individuals. The “Insurance for All” report was released at the conference on the theme “Potential for insuring a billion + people.
Mr Randip Singh Jagpal, Executive Director, Health, Insurance Regulatory and Development Authority of India (IRDAI) said, “India is the only country in the world where we have a single body responsible for both regulation and development of the insurance industry. Although our primary mission is to protect policyholders, this objective is not at odds with supporting insurance providers and growing the insurance industry” while addressing the session on bridging the trust gap.
The plenary sessions focused on building trust and easy access being critical as average age of insurers is declining. The Digital Health Mission was emphasized to resolve the issue of customer trust deficit as it will increase transparency. Insights were also shared regarding the reduction in out-of-pocket expenditure of the average customer while government expenditure is increasing, led by greater penetration of health insurance. Challenges are prevalent in terms of headwind medical inflation being in the range of 11 - 14 per cent with the burden of non-communicable diseases increasing and a need for health insurance to be more holistic. It was emphasized that the data from hospital visits can be instrumental for bridging the trust deficit between patients, insurers and healthcare providers and improving accessibility and affordability of healthcare services, especially with the latest AI tools. Better standards, processes and technology will help reduce the information asymmetry in the health insurance sector.
The 25th edition of the CII Insurance & Pensions Summit was organized in Mumbai today on the theme ‘Insurance for All: Potential for Insuring a Billion+ People. Speaking at the inaugural session, the Chief Guest Shri Debasish Panda, Chairman, Insurance Regulatory & Development Authority of India (IRDAI) said, “Insurance is a promise and for this promise to resonate with billions, transparency and trust are essential pillars. Understanding policy holders and creating a delightful experience for them will be key in ensuring ‘Insurance for All’ by 2047.”
Citing the example of UPI as an accessible platform that is not restricted to internet or mere smart phones, Mr Panda said that maximum potential can be unlocked when experience is simplified. He said that if this principle is applied to the insurance sector, its massive potential can be unlocked. He also advocated for the simplification in Products, Process and Promise of the sector. Mr Panda also called for a transparent and hassle-free claim process, which is the moment of truth for customers. This can not only help enhance the trust on the insurer but also of the entire sector.
Shri Siddhartha Mohanty, CEO & MD, Life Insurance Corporation of India said, ”Insurance sector is on the verge of significant growth backed by increasing income levels and heightened awareness. Technology has improved the scalability and reach of insurance, which is making it affordable and accessible for the underserved population. Reaching one billion population will need thought on marketing and distribution. Prioritizing consumer protection and driving innovation can help India set a global benchmark in insurance excellence.”
Speaking about the pensions sector, Mr Mohanty said that the sector is at a critical juncture and needs attention especially in the wake of a rapidly ageing population, lack of sufficient savings, lack of awareness and lack of access to schemes. The goal should be to ensure that every Indian superannuates with dignity and confidence.
Mr Tapan Singhel, Chairman, CII National Committee on Insurance & Pensions and Managing Director & CEO, Bajaj Allianz General Insurance Co. Ltd. while underscoring the importance of the insurance sector said that every year about 10 crore Indians go below poverty line due to lack of health insurance. The sector has a huge role to play in employment generation, infrastructure development and strengthening social security for a resilient and prosperous nation.
Mr Chandrajit Banerjee, Director General, Confederation of Indian Industry (CII) in his address expressed that CII would like to work closely with the regulator to train agents in terms of incorporating global best practices and building trust through customer orientation. He also said that CII is working on annual impact assessment report of regulatory actions for the insurance sector to create an environment for bolder reforms. He also proposed roadshows with IRDA to attract investments into Indian markets, among other measures.
Mr Hemant Jhajhria, National Head of Consulting, KPMG in India said that upliftment of the 40-50 crore Indians at the bottom of the pyramid will require a strong system of Payments, Credit and Insurance. He called for attention in two areas viz. distribution and products to strengthen the insurance sector.
