Innovation in Insurance: New Schemes and Digital Transformation
In recent years, the Indian insurance sector has undergone significant changes, driven by both government policies and technological advancements. The Government of India has introduced new insurance schemes aimed at creating a universal social security system for its citizens, particularly the underprivileged.
New Insurance Schemes in India
Since April 2019, the government has launched several innovative insurance schemes to enhance social security across the nation. Here are some of the key schemes:
PMSBY - Pradhan Mantri Suraksha Bima Yojana
The Pradhan Mantri Suraksha Bima Yojana (PMSBY) offers a one-year accidental death and disability cover. This scheme is accessible to all bank account holders between the ages of 18 and 70, with an annual premium of Rs. 12 per subscriber. The risk coverage provided is:
Rs. 2 lakh for accidental death and permanent total disability Rs. 1 lakh for permanent partial disability (for a one-year period)PMJJBY - Pradhan Mantri Jeevan Jyoti Bima Yojana
The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) offers a renewable one-year term life cover of Rs. 2 lakh to all subscribers aged between 18 and 50. This scheme aims to provide life cover during the prime working years of individuals.
NHPS - National Health Protection Scheme
The National Health Protection Scheme (NHPS), which was launched in September 2018 under the Ayushman Bharat program, provides health insurance coverage of up to Rs. 5 lakh to more than 10 crore vulnerable families. This scheme is expected to significantly enhance the penetration of health insurance in India from 34 percent to 50 percent.
Digital Transformation in Insurance
Consumer behavior in the insurance sector is shifting rapidly toward digital platforms. Due to the pandemic, awareness about health risks and the importance of insurance has significantly increased. Digital insurance platforms are becoming popular, allowing policyholders to compare insurance options from the comfort of their homes.
Online Insurance Comparison Websites
Online insurance comparison websites, such as InsureMI, are quickly gaining traction in India. These platforms provide a convenient way for consumers to explore various insurance options, compare policies, and make informed decisions. They eliminate the need for physical visits to insurance agents, offering a more efficient and customer-centric approach to buying insurance.
Challenges and Future Prospects
Adopting technology in the insurance business is not without its challenges. Long-term policies require stable and reliable platforms, and the digitalization process involves significant risks and regulatory considerations. Once digital transformation is complete, several new opportunities will emerge, including personalized insurance products, better risk assessment, and improved customer service through digital channels.
As the insurance sector in India continues to evolve, it is crucial for both the government and insurers to stay adaptable and responsive to changing consumer needs. The future of insurance in India looks promising, with a growing emphasis on digital platforms and innovative risk management solutions.