IoT is a system of interrelated computing devices and has the ability to

Iot is a system of interrelated computing devices and

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IoT is a system of interrelated computing devices and has the ability to transfer data without human intervention. Sensors attached to devices gives us information about the users. This information helps the insurers to assess risks and price their policies accordingly. Insurance companies deals with loads of data. By automating the process of extracting relevant information reduces costs and time. These data also needs to be analysed in order to evaluate the validity of claims. AI holds capability to read patterns of data and hence can identify any fraudulent claims. The AI chatbots interacts directly with customers via human- like interfaces. They provide necessary information and also connects them to services that a customer needs. FDI in Insurance Sector: The proposed removal of foreign-ownership cap on insurance intermediaries is likely to increase competition, strengthen distribution capabilities to enhance insurance penetration and boost mergers and acquisitions in the medium to long term- according to Fitch ratings. The government’s decision to permit 100% FDI in insurance intermediaries is expected to help foreign brokerages buy into Indian companies and deepen the market in terms of new products and technology. Opportunities for the Insurance Sector: ULIP stands for Unit Linked Insurance Plans which is a combination of Insurance and Investment. In ULIP, the insurance company puts a part of the investment in life insurance and the rest is invested in share or bonds or equity etc. ULIP comes with its own set of advantages. It is beneficial for consumers since we get a life cover coupled with investment. The premium paid towards ULIP is eligible for tax deduction under Section 80C and the 15
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returns on the policy are exempt from income tax under Section 10(10D) of the Income Tax Act. ULIP turns out to be a good option for long term goals as the money gets compounded and the net returns are consequently more. According to The Economic Times, Bancassurance means selling insurance product through banks. Banks and insurance companies get into a partnership wherein the bank sells the insurance company’s products to its clients. The full fledged package of financial services not only benefits customers but also profits both the insurance companies and the banks. It helps the bank to strengthen their customer base and offer services under one single roof. This also increases customer satisfaction leading to greater customer retention. The consumers rely more and are confident about the services banks offer. The insurance company thus uses bank as a platform for insurance penetration in the country. As for the customers, they get a risk coverage at the bank itself and also have easy access to claims. 16
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  • Spring '14
  • Insurance Sector India

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