The general insurance industry in India is undergoing a paradigm shift in terms of products and services. Gone are the days of traditional standardised offerings; today, the industry is rapidly moving towards personalised solutions tailored to meet the specific needs of customers. With a population inching towards 1.5 billion, the spectrum of individual needs and preferences is remarkably diverse; today, customers want solutions that address their defined requirements, and this necessitates a departure from the traditional one-size-fits-all approach. Customisation has emerged as a new norm in all industries; from personalised recommendations in e-commerce to customised healthcare plans, businesses are recognising the value of catering to individual requirements in a population that continues to grow and diversify. The insurance industry, too, recognises the importance of customisation and is gradually shifting towards offering personalised solutions.
One of the most significant elements that has helped usher in the era of product innovation in the industry is the advent of the ‘Use and File’ regime, which has empowered insurers to experiment with the products and has brought in greater flexibility. Insurers can now swiftly develop and file new products, allowing quicker adaptation to changing consumer needs and market trends. The other significant change accompanied by Use and File is the integration of technology in various aspects of the insurance business, which has catalysed a paradigm shift in the realm of personalised insurance. Artificial intelligence (AI) and machine learning algorithms empower insurers to conduct more precise risk assessments, resulting in better-tailored products that accurately reflect individual risk profiles. Similarly, data analytics provides invaluable insights into customer behaviour, enabling insurers to refine their offerings to align with personal preferences and lifestyle choices. At Bajaj Allianz General Insurance, we are at the helm of offering customised products. Our ‘My Health Care Plan’ has a wide range of optional coverage, giving the customers the flexibility to design the cover per their requirements. Similarly, our motor insurance add-on cover, ‘Pay As You Consume,’ gives our customers the freedom to choose the insurance premium depending on vehicle usage. We are proud that we were the first insurer in the country to bring the concept of Usage-Based Insurance.
MD & CEO
Bajaj Allianz General Insurance Company Limited
Personalisation also means continuous evolution of the offerings to align with customers’ changing life cycles; this ensures that, as an insurer, you will remain relevant to the customer in various stages of life. This also entails keeping a close eye on the country’s changing demographic; for example, we know that the ageing population of India is on the rise, and many of these elderly are living alone. It means there is a need for insurance products that offer solutions to the unique needs of the elderly. Our ‘Respect Senior Care Rider’ is one such product. It offers Planned and Emergency Road Ambulance Services, Home Care services (Physiotherapy & Nursing Care), Concierge Services, and Psychological Assistance, amongst many others. However, the most unique offering is a smartwatch with fall detection technology. This wearable keeps track of many body vitals, but most importantly, if a person falls, an alert is sent to the service provider, who then sends emergency support to the insured. This is just one example of how insurers can resolve customer worries by working in close collaboration with a diverse array of players in the value chain. In the times of come, we will see more and more insurers forging partnerships with healthcare providers, insurtech players, fintech companies, and government bodies to design solutions and ecosystems that go beyond the realm of traditional insurance products.
In light of the recent regulatory changes regarding the de-notification of tariffs, personalisation has become even more crucial. We expect to see a surge of innovative services and products in the industry, providing customers with a broader range of options. Insurers must continue innovating to maintain customers’ interest and attract them. In conclusion, personalised offerings are the future of India’s rapidly evolving insurance landscape. Regulatory reforms and technological advancements drive innovation in personalised insurance, promising the industry a brighter and more inclusive future. Insurers must continue to embrace these changes, delivering tailored solutions that perfectly align with the unique preferences of individual policyholders.
