How Has Digital Transformation Impacted the Two-Wheeler Insurance Sector in India
Updated On Nov 06, 2020
The digitisation of the entire economic sphere of the country has had positive impacts across all sectors. These changes have impacted every step of the process when it comes to the interaction between insurance companies and consumers.
The digitisation of the entire economic sphere of the country has had positive impacts across all sectors. Not a single industry is left untouched without the footprint of digitisation. This also includes the two-wheeler insurance sector which has seen a vast range of changes as a result of the digital transformation of India’s economy. These changes have impacted every step of the process when it comes to the interaction between insurance companies and consumers.
Let’s read about these impacts.
1. Removal of Intermediaries
The first impact to note is that insurance companies are able to make all their product offerings available online in one place. This allows the customer to directly view all the policy offerings and make an informed choice about the policy that they would like to take. This eliminates the role of agents or other intermediaries and importantly thus reduces the overall cost of the policies by doing so. This is therefore a very positive impact of the digitisation process.
2. Comparison Made Easier
Insurance companies are now able to present all the conditions and details of their policies online and the purchaser is able to access all of them in one go, and compare them simultaneously. Consumers can therefore browse different policies in one place and select which one makes the best fit for them, easily making an informed decision. This further reduces the role of intermediaries and importantly allows the customer to make a smarter choice.
3. Increased Efficiency
Digitisation has made the process of purchasing insurance a lot less cumbersome and time-consuming. When purchasing insurance for your two-wheeler offline, you would be required to fill out a lot of paperwork and perhaps even visiting various locations such as branch offices of the insurance company. With digitisation and online purchasing, the purchaser can buy a policy from the comfort of their home with an entirely online process that requires very little paperwork and no need to visit anywhere physically. It is thus definitely a positive change.
4. Smoother Claim Settlement
The impact of digitisation is not restricted to the process of purchasing the policy, but also comes to the process of claim settlement which has been made much smoother due to the digital wave. The policyholder is able to raise a claim online and submit the necessary documentation online as well, and thus it reduces a lot of the obstacles in terms of convenience that one may face when raising a claim for two-wheeler insurance.
The digital wave has thus had a positive impact across the two-wheeler insurance sector. Ranging from the process of purchasing the insurance itself, where intermediaries have been eliminated, to the process of raising and settling claims, the convenience of the customer has been greatly increased. The overall process is now greatly more efficient, and customers are empowered to make informed choices.
You May Also Like To Read:
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.