We sit down with Pankaj Vashishtha, Co-Founder & CEO, Policy Ensure to talk about how they are leveraging technology and insurance adoption.
Give us a brief background on Policy Ensure’s journey far since its inception.
Policy Ensure is an insurance broker under IRDA License with a strong presence in tier 2 and tier 3 towns across India . Since its inception, Policy Ensure has been dedicated to simplifying the process of buying insurance with the help of POSP’s and ensuring transparency. They offer a diverse portfolio of general insurance products, including health insurance, motor insurance, home insurance, and travel insurance. With a partner-centric approach, Policy Ensure focuses on providing comprehensive coverage, exceptional service, and leveraging technology to enhance the overall experience.
How is the brand ensuring tier 2 & tier 3 insurance penetration?
The Policy Ensure brand is actively working towards increasing insurance penetration in tier 2 and tier 3 towns in India. They have implemented several strategies to ensure accessibility and awareness of insurance products in these areas.
Extensive Distribution Network: Policy Ensure has established a robust distribution network with tie-ups with local people as POSPs, operating in tier 2 and tier 3 towns. This enables them to reach out to a wider customer base and provide personalized assistance in understanding and purchasing insurance products.
Regional Offices and Branches: To strengthen their presence, Policy Ensure has set up regional offices and branches in tier 2 and tier 3 towns. These physical locations serve as touchpoints for customers to inquire, seek assistance, and purchase insurance policies. By having a local presence, they can cater to the specific needs and preferences of customers in these areas.
Digital Initiatives: Recognizing the growing digital adoption in smaller towns, Policy Ensure has invested in user-friendly online platforms and mobile applications. They offer digital channels for POSPs to compare, advise the right product to customers and manage insurance policies conveniently from the comfort of their homes. This digital accessibility ensures that customers in tier 2 and tier 3 towns can easily access insurance products and services locally with POSPs (Pepartners).
Education and Awareness Programs: Policy Ensure conducts educational initiatives and awareness programs in collaboration with local people and also train the young who want to start their insurance business. These programs aim to educate individuals and create awareness about the importance of insurance, its benefits, and how it can financially protect them and their families.
How is technology transforming the way Insurance is perceived in India?
Technology is revolutionizing the perception of insurance in India by making it more accessible, efficient, and customer-centric. With the advent of digital platforms and mobile applications, individuals can now compare, purchase, and manage insurance policies conveniently.
Technology-driven solutions such as artificial intelligence and machine learning are streamlining underwriting processes, improving risk assessment, and enhancing customer experiences. Insurtech startups are introducing innovative insurance products and personalized offerings. Additionally, digital platforms provide transparency, simplified claims processes, and 24/7 customer support. Overall, technology is reshaping the insurance landscape in India, making it more user-friendly, efficient, and responsive to the evolving needs of customers.
How has technology impacted the insurance industry, and what are some specific advancements that have transformed the sector in recent years?
Technology has had a profound impact on the insurance industry in India, driving significant advancements and transforming various aspects of the sector. Some specific advancements that have reshaped the industry in recent years include:
Digital Platforms and Mobile Applications: The proliferation of digital platforms and mobile applications has revolutionized the way insurance is accessed and managed. Customers can now compare, purchase, and manage insurance policies conveniently from their smartphones or computers. These platforms provide easy access to information, policy documents, and digital payment options, streamlining the overall customer experience.
Data Analytics and Artificial Intelligence: The use of data analytics and artificial intelligence (AI) has transformed underwriting processes, risk assessment, and claims management. Insurers can now analyze vast amounts of data to make more accurate risk assessments, automate underwriting decisions, and detect fraudulent claims more effectively. AI-powered chatbots and virtual assistants also enhance customer support and claim processing efficiency.
Internet of Things (IoT) and Telematics: IoT devices and telematics have enabled insurers to offer usage-based insurance (UBI) and monitor policyholder behaviour in real-time. Connected devices, such as telematics devices in vehicles or wearable fitness trackers, provide valuable data that insurers can use to offer personalized coverage and incentivize healthier lifestyles or safer driving habits.
Blockchain Technology : Blockchain technology has introduced transparency, security, and efficiency to insurance operations. It facilitates secure and tamper-proof record-keeping, improves claims settlement processes, and simplifies policy administration. Blockchain also enables the creation of smart contracts, automating policy execution and claims settlements based on predefined conditions.
Insurtech Startups: The rise of insurtech startups has brought innovative solutions and new business models to the insurance industry. These startups leverage technology to address specific pain points, introduce personalized offerings, and enhance customer experiences. They often specialize in niche insurance segments or introduce disruptive technologies that challenge traditional insurance practices.
Digitized Claims Processes: Technology has accelerated and simplified the claims processes in insurance. Insurers now offer digital claims filing, document submission, and tracking mechanisms, reducing paperwork and enabling faster claim settlements. Automated claims assessment tools, powered by AI, streamline the evaluation of claims, improving accuracy and efficiency.
These advancements have transformed the insurance landscape in India, making insurance more accessible, efficient, and customer-centric. Insurers are leveraging technology to enhance operational efficiency, deliver personalized experiences, and offer innovative products and services that cater to the evolving needs of customers also with the help of insuretech driver insurance brokers millions of new young people are setting up their insurance distribution business.
With the rise of insurtech companies, how do traditional insurance companies adapt and leverage technology to stay competitive in the market?
Here are some ways traditional insurers are embracing technology:
Digital Transformation: Traditional insurers are undergoing digital transformation to streamline their operations, enhance customer experiences, and improve efficiency. They are adopting digital platforms, automating processes, and digitizing policy issuance, claims management, and customer service.
Online Presence and Mobile Apps: Traditional insurers are establishing a strong online presence by developing user-friendly websites and mobile applications. This allows customers to access information, compare policies, purchase coverage, and manage their policies conveniently from any device.
Data Analytics and AI: Insurers are leveraging data analytics and artificial intelligence to gain insights into customer behavior, preferences, and risks. This helps them customize products, personalize marketing efforts, optimize underwriting processes, and detect fraudulent claims more effectively.
Customer Engagement: Traditional insurers are focusing on improving customer engagement by adopting digital channels for communication and support. They are utilizing chatbots, online chat functionalities, and virtual assistants to provide prompt and personalized assistance to customers.
Collaboration with Insurtech Startups: Rather than perceiving insurtech startups as competition, traditional insurers are collaborating with them. They partner with insurtech companies to leverage their technological expertise, explore new business models, and co-develop innovative solutions to enhance their offerings.
IoT and Telematics Integration: Traditional insurers are incorporating the Internet of Things (IoT) and telematics technologies into their products. They offer usage-based insurance (UBI) and use IoT devices to monitor policyholders’ behaviour, such as driving habits or health data, allowing them to offer personalized coverage and pricing.
Embracing Blockchain: Traditional insurers are exploring the potential of blockchain technology for secure data management, smart contracts, and improving transparency in policy administration, claims settlement, and fraud detection.
Enhanced Cybersecurity Measures: As digitalization increases, traditional insurers are prioritizing cybersecurity to protect sensitive customer data from cyber threats. They invest in robust security systems, encryption technologies, and employee training to mitigate risks.
Give us an overview of the phygital model.
The phygital distribution model of Policy Ensure combines the advantages of physical presence with the convenience of digital platforms. It aims to provide a seamless and integrated customer experience by blending both physical and digital channels. Here’s an overview of how Policy Ensure implements the phygital distribution model:
Physical Presence: Policy Ensure establishes physical offices and branches in various locations, including tier 2 and tier 3 towns, to provide face-to-face interaction and personalized assistance to customers. These physical touchpoints serve as convenient locations for customers to inquire about insurance products, seek guidance, and receive support from knowledgeable agents.
Digital Platforms: Alongside its physical presence, Policy Ensure leverages digital platforms, such as its website and mobile application, to offer a range of online services. Pepartner (POSP)can access these platforms to gather information, compare policies, sell insurance, and manage their policies remotely, manage their portfolio and see their earnings with complete transparency.
Offline Assistance: For customers who prefer in-person interactions, Policy Ensure’s physical offices and branches offer personalized assistance from trained agents. Customers can visit these locations to receive guidance on policy selection, understand coverage details, clarify queries, and complete the necessary paperwork.
Integrated Experience: Policy Ensure ensures a cohesive experience by integrating its physical and digital channels. Customers with PE partner who initiate their insurance purchase online can seamlessly transition to the physical channel if they require additional support or prefer face-to-face interactions.