Your money: technology makes car insurance easier; policy renewal now simpler with activation of C-KYC and e-KYC – Insurance News

By Tarun Mathur

If, a few years ago, someone told you that you could choose to pay your car insurance premium only for the days you drive, it would still have seemed far-fetched to you.

Cut to the present day. The world of insurance is evolving all the time and customer centricity is becoming the focal point of the entire industry.. Auto insurance, which was seen as a mere legal mandate, has now evolved to proactively adopt a customer-centric approach, much like health insurance. And life counterparts.

The situation has changed rapidly, especially after the pandemic, with the intervention of regulatory authorities to make car insurance more inclusive and user-friendly. This change has also been driven by technology and evolving customer demands. Product innovation and policy changes have allowed customers to see what they are getting and get what they pay for. Unnecessary costs and inflexible products began to give way to personalized experiences and a transparent ecosystem. Some recent initiatives driving this change are:

Pay as you drive (PAYD)

One of the most important innovations to occur in the auto insurance industry is the advent of the pay-as-you-drive policy. The technology, which leverages telematics to assess the driver’s use of the vehicle, allows the premium requirement for an individual to be correctly assessed.

With PAYD, you only pay for what you need. This was a groundbreaking initiative, especially during the pandemic, when vehicle use was limited but policyholders still paid full premiums. This simple step taken by Irdai has led the industry towards a more customer-centric approach.

Digitized solutions

With seamless access to multiple touchpoints, customers today operate in a digital world of insurance. From platform discovery to policy management to claims processing and after-sales service, auto insurance provides convenience, security and comfort to customers at their fingertips. They now have access to apps and portals that allow them to change their policies, report claims and easily receive timely support.

Hassle-free KYC process

The auto insurance ecosystem has just become more transparent and accessible with KYC mandate on new purchases or renewals. The processes have been made much simpler thanks to the activation of C-KYC and e-KYC. Collecting and using data, ensuring data privacy and security, and the need for regulations to keep up with the pace of innovation have been made much easier thanks to technology.

The auto insurance industry today stands at the cusp of a customer-centric approach, where greater personalization and streamlined processes will redefine the overall customer experience. The adoption of artificial intelligence and data analytics will likely play a central role in this transformation.

The author is co-founder and chief business officer of General Insurance, Policybazaar.com