Chennai– Indian insurers should adopt technologies like robotic process automation, blockchain technology, Internet of Things (IoT) and others to improve their processses and re-configure the insurance business model, states a joint study by Confederation of Indian Industry (CII) and EY.

According to the study titled Insurer of the Future, robotic process automation can replicate human behaviour and execute non-judgemental sequence of activities helping insurers to automate client servicing activities, said CII in a statement issued on Friday.

“Blockchain technology is currently used for Bitcoin payments, but it has the potential to eliminate error and to detect frauds by providing a decentralised digital repository to verify the veracity of customers,” the statement said.

According to the study, IoT can play a crucial role in assessing and pricing the risk of loss, while by collaborating with third party data services providers, insurers can make informed strategy and policy related decisions for insurance risk management and fraud monitoring.

“Insurance bundling on e-commerce platforms enables greater customisation in products and pricing, thereby enabling targeted marketing to customers,” CII added.

“The insurance industry is at the threshold of a long period of growth. With the rapid change in technology and digitisation, the drivers of insurance business are changing. Those insurers who disrupt themselves continuously would be the ones who will succeed in the long run,” Sanjiv Bajaj, Summit Chairman and Chairman of the National Committee on Insurance and Pensions, CII, was quoted as saying in the statement.

“All stakeholders – the industry, intermediaries, Government and regulator- need to work together in transforming customer experience,” he added.

“The Indian insurance sector has evolved. In order to realize the full potential, the industry must focus on aspects of technology that will fundamentally change the way customers know and interact with each other and the insurers,” Rohan Sachdev, Global Insurance Emerging Markets Leader and Partner, EY India, was quoted as saying in the statement.