“Insurance as a category has garnered greater appreciation post-pandemic”

What is your prediction for the future trends in the insurance sector, especially in the motor insurance and health space in India? Will we see a change in people’s consumption patterns?

Anup Rau, MD & CEO, Future Generali India Insurance Co. Ltd.

The experience of living through the COVID-19 pandemic is continuously changing the world in which we live and impacting our behaviour. We have seen a distinct change in people’s consumption patterns since 2020—there has been a greater appreciation for insurance as a category during the pandemic. The novel coronavirus has not only challenged the healthcare system of the entire country but also made consumers question their sense of wellbeing. Consumers have done an internal audit, assessed their health, learned about their health risks, and are more ready now to approach their diagnosis and treatment in new ways. At the same time, there is an increase in mental illness, anxiety, financial worries, job insecurity, and fear of getting the virus or passing it along to others.

All of this has resulted in people wanting to take charge of their health and life. Realising that such eventualities can potentially derail our lives, consumers are looking to mitigate the risk. Health as a category has seen the highest interest and attention and is very likely to overtake the motor segment within the next 4 years. The deepening of the market has also lead to an increase in demand for customisation. Accelerated application of technology, thanks to this pandemic, has also enabled companies to deliver the same.

What are the emerging risks that you perceive in the current ecosystem?

The pandemic and the extended lockdown have made companies accelerate the digitisation of their customer and supply-chain interactions and their internal operations by several years. But with digitization comes an emerging risk, that of cybersecurity, which needs to be taken seriously. Cybersecurity risk includes everything from identity theft, to transaction security to data breach. The scary part is that we cannot rely on historical data to assess the order of magnitude of this risk— but suffice it to say that it is a huge factor. With increasing reliance on technology, and with vastly distributed workspaces, any disruption would lead to significant financial loss and damage, including business interruption, loss of reputation, liabilities, and regulatory action.

In the near future, there is going to be a rise in demand for cyber insurance, which covers the costs associated with a breach of a company or an individual’s cybersecurity or data, including engaging with authorities like cybercrime or the government’s IT cell, notifying individuals about the breach or the hacking incident, settlement costs, fines, loss of business/ customers, etc.

What are FGII’s plans to lure the younger demographic to take up health insurance?

The median age of an insurance customer is 35 years, and while we ensure we are relevant to the core TG, we have our eye on Gen Y and even Z as well. This is a tech-savvy generation that expects information at its fingertips. Therefore, we aim to communicate with them digitally, via social media sites, email, on OTT platforms, etc, and ensure smooth access to tools via technology.

FGII’s campaigns shared on social media are young, fresh, and exude a distinct visual appeal, in order to resonate with the millennial audience. We also find unique ways to address them, by roping in influencers, celebrities, bloggers, etc, to reach them where they are most comfortable.

And of course, we are constantly innovating with our products. For instance, we have launched the Health Super Saver plan that specifically targets the younger demographic by offering them unprecedented flexibility and price advantage. This plan counters the traditional millennial view that health premiums are a ‘loss’ if there is no claim raised in a particular year, by offering an 80% percent discount on premium in the consecutive year(s) of the plan, provided there is no claim in the first and the second year. At FGII, we want to fit products to the demography, rather than force an unsuitable product on a reluctant customer, since they lack choices.

What’s your take on the future of the workplace and employment?

The pandemic, I worry, has made the world a lonelier place. As an aside, COVID-19 pandemic has escalated the pre-existing mental health problem in the country. Today, 1 in every 5 Indians suffers from some kind of mental health issue (as per WHO).

Prolonged absence from the office and minimal physical interaction with work colleagues will, over time, lead to behaviour that is more insular. The use of technology, distributed workspaces will give people unprecedented freedom and radically cut organization expense—on travel, training, utilities, staff welfare, etc. This will also tempt companies to divest physical and common resources. All this will have implications on the nature of employer-employee engagement, and I dare say, over a period of time, on the very nature of employee contracts. Employees of the future could invest in their own education and training, buy their own tools, create their own workspaces (we are already there!), and provide services to more than a single employer. Some of this could happen sooner than we think. To tweak a Bill Gates quote, we tend to underestimate what changes in 10 years and overestimate what we can accomplish in 1 year.

The larger question is: will people a generation from now wear their employer as a sign of their personal identities like they wear their nationality, religion, and ethnicity? I suspect we will have to find new ways of dealing with this, to get people to feel and be a part of the collective whole called ‘organization’.

Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of ET Edge Insights, its management, or its members

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top