To unravel the enigma behind India’s underutilized insurance sector, CAMSRep (CAMS Insurance Repository Services Limited), an insurance repository regulated by the Insurance Regulatory Development Authority of India (IRDAI), published a report titled ‘Why India isn’t claiming its Insurance?’ at the CIFIL Symposium on ‘The Path to Insure a Billion’ held at the Indian Institute of Technology Madras (IIT-M) on 28 February 2024.
The symposium, organized under the auspices of CAMS IIT-M Fintech Innovation Lab (CIFIL), marked a significant milestone in addressing the challenges and opportunities inherent in India’s insurance landscape. Industry stalwarts, academic luminaries, and experts congregated to deliberate on strategies to bolster insurance penetration across the nation.
Inaugurating the symposium, Prof. Kamakoti, Director of IIT-M, and Mr. Anuj Kumar, Managing Director of CAMS, set the stage for insightful discussions. Mr. Srinivasan Gopalan, Ex-Director of the National Insurance Academy, and Mr. Naveen Tahilyani, CEO & MD of TATA Digital, provided invaluable perspectives as chief guest and keynote speaker, respectively.
The main findings of the report on the Indian insurance paradigm are:
- Perception vs. Reality: Many policyholders perceive insurance as a bureaucratic formality rather than a vital risk mitigation tool. Insurance policies are seen primarily as a tax-saving tool.
- Awareness Deficit: Widespread ignorance regarding insurance benefits contributes to low uptake and underutilization of insurance products.
- Claims Complexity: Policyholders encounter hurdles in realizing the full value of their insurance policies, particularly during the claims process.
- Intermediary Challenges: While intermediaries play a pivotal role, their involvement sometimes leads to misinterpretation, mis-selling, and delays in benefit realization.
- Want of Seamless & Friendly Process: Policy holders want easy communications, and a personalized touch for their queries and claims. They expect human touch points for a seamless communication and smooth, hassle-free claims process. Contrary to the customer expectation, insurers have been pushing automation and AI-enabled communications.
These findings underscore the imperative for collaborative efforts among stakeholders to enhance the policyholder experience, streamline benefit delivery, and bolster insurance penetration in India, aligning with IRDAI’s vision of ‘Insurance for All’ by 2047.
The CIFIL symposium served as a platform to dissect industry challenges and propose innovative solutions. Eminent speakers elucidated on various impediments, including low insurance penetration, high health coverage gaps, and complex claims procedures. The academia from IIT showcased the transformative potential of cutting-edge technologies such as artificial intelligence, blockchain, and data analytics in addressing these challenges.
CAMS Limited, a pioneer in financial infrastructure and services, spearheads numerous initiatives to revolutionize the BFSI landscape in India. Through its subsidiary, CAMSRep, it continues to champion innovation and excellence in the insurance sector, propelling India towards a future of robust risk mitigation and financial inclusion.