Large insurers have launched mobile phone apps which is making it easier for

Large insurers have launched mobile phone apps which

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Large insurers have launched mobile phone apps which is making it easier for customers to transact with them. They are also slowly moving towards paperless claims as well. Insurer that focuses on creating smaller value products are using blockchain-based systems at the backend to speed up claims processing. Example time taken to service a mobile phone damage claim from about 25 days to a few hours. Insurers are using data analytics and Internet of Things technology to increase operational efficiencies. Using Blockchain as a distributed ledger has created opportunities to insurers across the value chain from verified digital customers to automated underwriting, claim management and fraud prevention. Different e-commerce platforms are working with insurance companies to onboard sachet financial products on their platforms targeting mass market focusing on mid and low-income section. Example of technology benefitting the industry and customers as whole was during a surge in home insurance claims following destructive floods in Kerala. Insurers like Reliance General Insurance decided to deploy a video conversation feature, used to process motor vehicle claims, to quicken claims processing. The policy holders had a two-way video chat to show the extent of damage to the surveyor which resulted in claims getting processed in three days from over two weeks earlier. Mergers and Acquisitions: With multiple players in the market Mergers and Acquisitions(M&A) is a very common activity in today’s world and insurance sector is not any exception to it. According to KPMG, 84% of insurance firms look out for at least one acquisition. There are certain benefits of mergers and acquisitions which are mentioned below. 1. Increase in market share: It is one of the major reasons of M & A 2. Greater value generation: M&A helps in increasing the cost efficiency by operating in efficiency if scale. This helps in higher value proposition by shareholders. 5
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3. Cost Efficiency: After M&A companies benefit form cost efficiency as the new and bigger company is able to provide services on a larger scale. 4. Improves Competitiveness: The new company is more competitive as compared to its previous state. Classification of M&A in Insurance Sector: List of Bancassurance Tie ups in India: - Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd. – Between Canara Bank, HSBC Insurance Ltd and Oriental Bank of Commerce. - SBI General Insurance Company Ltd. – Between SBI and Insurance Australia Group - ICICI Lombard General Insurance Company Ltd. – Between ICICI Bank and Faifax Financial Holding Limited - HDFC Life – Between HDFC and the Standard Life - ICICI Prudential Life Insurance Company – Between ICICI Bank and Prudential plc Upcoming Mergers and Acquisitions: In the February 2018 Budget, the central government announced its plan to merge three public sector general insurance companies that will help in consolidation of market and will also help the government in meeting its disinvestment target. Government has appointed E&Y as a consultant to manage the merger process.
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  • Spring '14
  • Insurance Sector India

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