Benefits of Digital Insurance Policies
17 October,2024
Updated:17 October,2024
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581You are reading this article from your phone or computer, right? Digitisation has spread throughout the world, with new users joining daily. From books to groceries and everything in between, digital has become the new normal. The fact that insurance has followed suit and moved online is therefore not surprising. In this blog, we will be discussing digital insurance, its benefits, and how it differs from traditional insurance. Let's get right in!
What Are Digital Insurance Policies?
As its name suggests, “digital insurance policies” are insurance policies provided by digital insurance providers. They are generally available on the websites and apps of these insurers. While some digital insurance companies exclusively offer their products on digital channels, others sell both online and through physical branch offices.
Digital Insurance vs. Traditional Insurance
Although policies purchased online and offline have the same coverage, the following table highlights the key distinctions between digital and traditional insurance.
|
Criteria |
Traditional Insurance |
Digital Insurance |
|
Purchase Process |
Includes several steps that usually involve going to a branch office and filling out forms |
Simple steps without any need for physical form filling |
|
Claims |
Involves extensive paperwork |
Simple, paperless claim procedure |
|
Convenience |
Time-consuming and requires several procedures for policy purchase and claims |
Quick, easy-to-follow steps and requires no paperwork |
Case Study
Mr Gukesh decided to buy Car Insurance for his four-wheeler via the traditional method. Consequently, he spent a lot of time comparing different options to choose the best policy for his car. After narrowing down the insurance provider and coverage he wanted, he proceeded to the branch office of the insurer and spent a few hours meeting with agents and filling out forms. Subsequently that year, he was required to return to the branch office to complete a claim form for coverage of repair costs after his car sustained some minor accidental damage.
Following a challenging experience with conventional Car Insurance, Mr. Gukesh chose Digital Insurance for his next policy. He completed the purchase from home in a matter of minutes after quickly comparing many prices and customising his coverage online. Later on, when he wanted to submit a claim for small repairs, he did it with ease using the insurer's mobile app, which also let him monitor the progress in real time. He saved a great deal of time and work thanks to this simplified process, highlighting the obvious benefits of digital insurance.
Key Benefits of Digital Insurance Policies
The following are the key benefits of digital insurance policies.
1. Cost-effective Policies: With online insurance, insurance companies can reduce operational expenses that may have otherwise gone into infrastructure, electricity, and other costs. Moreover, agent commissions for selling policies are also bypassed. Consequently, it allows insurers to reduce costs on their insurance products.
2. Fraud Detection: Insurance fraud is an unfortunate occurrence in India. Digital Insurance helps to curb this to some extent. With data analytics and enhanced verification processes in place, insurance companies can prevent fraudsters from taking advantage of the system.
3. Overall Convenience: Buying insurance online is quick and requires no physical form filling. You can also raise claims in no time and track their status with ease. Moreover, you can attempt policy purchases and claims from anywhere and at any time, provided you have an internet-connected smartphone or computer.
4. Brand building: By using social media to advertise their brands and products, new-age insurance companies are utilising these platforms to build relationships with both current and potential customers. This is driving up sales of their new policies and enhancing current customers' trust in the company.
Additional Benefits of Digital Insurance Policies
The following are some additional benefits of Digital Insurance.
1. Optimised Procedures: Since there are no intermediaries, customers can buy directly from the company, thus avoiding any misinformation about the products or pricing. Also, online insurance makes it a lot easier for insurance companies to track purchases and claims.
2. Instant Assistance: Customers are bound to have questions while attempting policy purchases and claims. Considering this, most online insurers provide an chatbot that provides instant answers when asked insurance-related queries.
Why Digital Insurance Is the Future
With AI booming in recent times, it is likely to get integrated with Digital Insurance. It is also probable that technologies, such as blockchain and big data analytics, will be used to streamline operations. Furthermore, automated claims processing and other automatic processes may increase efficiency and thereby reduce operational costs to insurance companies. This shift to Digital Insurance will assist insurers in meeting the evolving needs of the modern customer.
Our Online Insurance Presence
With over ten years of experience in the insurance industry, Shriram General Insurance is one of India's top general insurance providers. You can obtain our insurance policies both online and offline. Car, bike, home, personal accident, and other insurance plans are among the general insurance products we provide. To view all of our insurance products, visit our website or the SGI mobile app. Alternatively, you can contact an agent or stop by our branch office.
FAQs
1. What are Digital Insurance Policies?
Digital Insurance Policies are policies sold by digital insurance providers through their online platforms, such as websites/mobile apps. There are digital insurance providers who sell exclusively online and others that sell their products both online and offline.
2. Is it safe to purchase insurance online?
Yes, it is safe to purchase insurance online from reputed insurance providers like Shriram General Insurance.
3. Can I access my Digital Insurance Policy on my phone?
Yes, you can access your digital insurance policy from your internet-connected phone or laptop.
4. How do Digital Insurance Policies enhance convenience?
Digital Insurance Policies improve convenience by facilitating the purchase of policies and the speedy filing of claims without the need for in-person meetings or form filling.
