ICICI Lombard GIC is putting technologies at work to build the pillar of digital trust.

Trust is a significant problem for insurers, but today’s digital solutions have provided insurers with a multitude of ways to become more transparent.

Sanjay Datta, Chief, Underwritings, Claims and Reinsurance, ICICI Lombard GIC told BusinessLine that transparency and ‘plain talk’ are imperative for companies looking to compete and gain an edge in the digital world; more so in Covid-19 times.

“Insurers need to maintain honesty and transparency in all interactions — beginning from sale of the product until claims to win the trust of customers. Insurers should proactively educate their customers about the coverage of Covid-19 in their respective products,” said Datta.

While the relevant details can be displayed on the website for ease of communication, the official said mailers and SMS can be sent out on the flexibility of premium payments and the different digital modes available for customers.

“Technology has been the biggest enabler in these difficult times, and digitisation shall become the norm in the times to come,” added Datta.

New business

Commenting on how the company is generating new business during this time, the official says: “Insurance, simply explained, is a risk cover against any unforeseen risks. Covid-19, which has been declared as a pandemic by the WHO, is exactly the kind of risk which was unforeseen a few months back.”

Explaining further, the official adds, “It has been a mixed bag for us, with some customers purchasing a health insurance cover to protect themselves from this pandemic, and then the other segment of customers who prefer to have disposable cash and hence delaying purchase of the same.”

The organisation has also encountered some renewal hurdles. “With technology at our disposal, one would have assumed that the renewals would be done at the usual rate. However, that is not the case, owing probably to the customer thought process of viewing health insurance premium as an avoidable expense,” said Datta.

Given that health insurance policies have a grace period of 30 days, the executive said: “Many customers are opting to defer premium payment so as to have disposable cash in hand for any emergency, unforeseen events. Having said that, as soon as the anxiety surrounding Covid-19 is reduced, our renewals should be back on track.”

Outlining a silver lining, Datta said: “As an organisation, we may take an exceptional call to extend the grace period beyond the usual 30 days considering the difficult times.”

Digital tools

ICICI Lombard is assessing the digital technology landscape to identify and implement the appropriate tools to achieve product and performance visibility across the end-to-end value chain.

“There is widespread anxiety with regards to the coronavirus pandemic and fatalities surrounding it. Most companies have implemented a ‘work from home’ policy. While this may have been an unprecedented challenge for some firms, it has not thrown us out of gear and there is a seamless and smooth functioning of all our services. We also need to thank our customers for adopting the digital route that has permitted us to function without any hiccups,” said Datta.

Noting that the Covid-19 pandemic has had a significant impact on the way most businesses function, insurance being no exception, the official said most insurers are accepting digital payments for insurance premium in addition to accepting scanned claim documents for claim settlement keeping customer safety in mind.

At ICICI Lombard, all functions have been digitised so that employees can work from home seamlessly. “All of them have been equipped with the necessary infrastructure, so that there is contactless, end-to-end business functioning,” said the official. “Right from policy issuance to claims where we are accepting scanned documents for both customer and employee safety,” he added.

Speaking about the likely scenario six months down the line, Datta said: “We sincerely hope with the right steps and precautions that we all take as a nation, the economy and businesses would be normalised six months down the line. There will be no panic buying and there shall be a regular flow of income.”

However, owing to the pandemic experience, Datta opined people would be more aware and inclined towards purchase of health insurance as a risk cover.

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