Hyderabad- September 25, 2020 :
History & Functionality:
Insurance is a contract of assurance between the Insurance company and an Individual / Organization to mitigate risk . It is an understanding with the insurance company that by paying a regular premium, the customer will be eligible to cover any unfortunate loss that occurs like Road Accident, Fire accident, Property loss, Loss of life etc., subject to the terms and conditions mentioned in the type of policy purchased examples Eg : Life Insurance, General, Motor, Health, Property etc., for different purposes and needs.
If we look back into the history of Indian Insurance Companies, the first insurance company started in Kolkata in the year 1818, followed by companies set up in Madras and Bombay between the years 1823 to 1829. And in the year 1972, all the general insurance companies were nationalized and merged into 4 Insurance companies. A major amendment made in the year 2000 was when the government permitted private sector into this business and simultaneously with IRDAI ( Insurance Regulatory and Development Authority of India) coming in as a supreme authority under whose governance the Indian insurance Industry functions.
Today, wehave around 57 insurance companies among which 24 Life insurance and 33 being Non-Life Insurance companies in India.
The Insurance industry with its deep roots needs to transform and adapt to the changing needs of the people as they are becoming more and more digital.
Role of Digitalization in Insurance Companies:
Traditionally, there was a lengthy procedure when a customer had to purchase an insurance policy. This was completely manual and paper based system that was time consuming and tedious.
The process was outdated and there was a lot of inconvenience for the customer and also to the insurance company / executive concerned. This resulted in customer churn and also led to higher operational costs.
Today, digital technology has made process easier and customers can purchase their Insurance policies ,pay premiums and renew their policies online.
In the recent times, with the COVID crisis, it’s proved that Digital First strategy in line with Digital Transformation helps organizations to operate efficiently. Companies that have adopted the digital has minimum impact of the crisis on their businesses. In particular, the BFSI, Telecom and other prominent sectors who transformed their businesses digitally are infact heading towards Unmitigated Digitalization.
IRDAI to permit Video-based KYC in Insurance Domain:
According to the recent update, IRDAI is on its way to permit Video-based KYC system for both the Life & General Insurance Companies. With Video-based KYC coming into force, there is a scope of immense increase in the ratio of insurance policies being sold out directly to the customers and the insurance business is expected to increase in near future. The reason being the convenience of having Policy copy immediately enabled by Video-based KYC.
As more and more people opt for online insurance, the industry will see a significant growth while securing the assets of the people.
Expected process of the Video-based KYC:
We provide support to advanced technologies like bio-metric capture, face recognition automation, and de-duplication of customer records. This ensures compliance to KYC, AML and other global regulations.