This was the third in the series of lectures. This class was taken by Prof. Anton Musgave. Sharing my class notes - Prof. is from South Africa and he started off with sharing his experiences in the current turnmoil the country is facing. More here. It was good to hear that he and his family was safe. Also, he shared how citizens came together to prevent spread of this outbreak by working with the govt. and offering a human shield to prevent further looting in the country. Since, this class was on leadership and strategy, he shared few quotes that I have taken note of - Never say 'empower your people'. Say 'unleash your people' Focus on taking away the obstacles Leaders need to design strategy, equip their team, define rules and step back Thinking about the future should be task of a leader Leaders are in the business of tomorrow Leaders have to deal with today but plan for the future Trends don't help forecast the future but Signals do.. What are signals? How to...
If 2010s was the decade of e-commerce, I strongly believe 2020s would be the decade of Insurance and Insur-tech. My take on how insurance would be evolve by the year 2030.
| Factor | 2030 | 2021 |
| Model of operation | Insurance will shift from 'detect and repair' to 'predict and prevent'. Aim to detect consequential loss by better prediction and alerting the user | Currently it is 'detect and repair' |
| Factor for determining Premium | Premium determined by 'Insurance Risk score' of the customer | Premium determined by Asset type |
| Data source | Insurance will make use of interconnected data sources | Insurance makes use of declared data sources |
| Basis of health insurance | Health insurance would be based on health signals from connected consumer devices (cars, fitness trackers, home assistants, smartphones, smart watches, clothing, eye wear, home appliances etc.) and risk appetite of the person | Health insurance is primarily on age based cohorts and declarations |
| Contract cycle | Insurance contracts would be 'pay as you go' with personalised pricing. Annual cycle to be replaced by continuous cycle | Insurance contracts are annual or multi-year contract with pre-defined pricing |
| Data sharing | Data sharing among public and private entities to be governed by common regulatory and cyber security framework | Data sharing is limited within the insurer and/or to-from insurance servicing partner |
| Distribution and purchase | Distribution - purchasing process is much faster | Distribution is mostly offline with a small fraction driven via digital channels (website) |
| Product portfolio | Insurance product portfolio - Usage based Insurance products. Micro usecases based products - phone battery insurance, flight delay insurance, Car battery insurance | Insurance products are comprehensive, exhaustive and carries generic add-ons |
| Role of Agents | Role of agents -changes to product educators and process facilitators. Incentive structure of the agents to be realigned. Agents would be enabled to sell any insurance policy with the help of AI - health, life, experiences, mobility, personal property. Insurance agents would interact with customers in a phygital way (mix of physical, virtual and digital) | Role of agent - push selling approach. Agents are incentivised based on Insurance premium amt. Product profile limited to their skill set and understanding. Agents mostly interact with customer physically to close a deal. |
| Underwriting and Pricing | U/W would be fully automated enabled with real time data. | Underwriting is a manual process with some assistance from data trends |
| Role of Regulator | IRDAI will act as faciliator. Regulator to facilitate Sandbox approach to filing product and marketing experiments | IRDAI acts as a regulator for product filing and consumer experience |
| Claims | Algorithms to replace manual claims process. Claims triage and repair services auto-triggered on loss. Auto-streamed video taken by car analysis loss description and loss amount. Manual interventions required for selected cases - contested claims where human interaction and negotiation is powered by analytics. | Claims are assessed manually or virtually |
| Alert and monitoring | Users receive real time alert on their asset - life, health, car, home | Alerts are limited to renewal process. |
These are my personal opinion only. If I have missed any factor or any of the above is incorrect, happy to hear back and get these corrected.
Look forward to hear what you think the predictions would be.
thanks
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