Boom in the adoption of technology in insurance among rural Indians

Written by Casparos Krumhout

The growing dependence on the internet and the demand for smartphones has led to an increase in the acceptance of fintech systems, e-health and e-learning platforms and online payment tools. The central government ‘digital indiaThe initiatives have improved the penetration and reach of digital technology, particularly in rural geographic areas, particularly in the insurance sector where response time (TAT) is a critical factor for the insured.

As the country embraces a digital revolution at the behest of 750 million smartphone users, insurance providers are positioning themselves in unique ways to secure more lives with just a few taps on their phones. For example, the quick and easy MER (Medical Examination Report) video for underwriting has significantly reduced the issuance of TAT. Once again, automated processes and data analytics are proactively meeting customer needs and improving TAT service.

Technology has eliminated the need for customers to travel long distances to benefit from products or services. Digital payments, particularly UPI, have revolutionized payment and purchase transactions. It eliminated the need for customers to be physically present at the point of sale/service.

In insurance, technology has positively affected many avenues focused on the insurance company. Life insurance companies have built many processes built into technology to facilitate claims settlement.

These technological interventions have accelerated various processes and turned them into powerful policy enablers:

eKYC – Outstanding Achievement

UIDAI’s approval of e-KYC certification for insurance companies is an important factor towards prompt and secure customer onboarding. It was a great step in the policy compilation process, helping insurance agents replace piles of paperwork and upload photos with something as simple as a one-time password. It is still difficult to find approved eKYC agencies; Partnering with one can greatly enhance the chances of getting cover even in the rural interior where one has a basic document like Aadhar.

Simplify ECS authorizations

Achieving a good tenacity ratio depends on whether the technology allows users to pay renewal premiums in the easiest way possible. Linking bank accounts to smartphones is a sure way to boost the Electronic Clearinghouse Service (ECS) that helps auto debit insurance premiums for free. In rural markets, this service is a key factor characterizing the continuity of policies, especially in areas where there are no banks or insurance companies.

Claims and other services

For rural clients, claims have undergone a drastic change in their response patterns. Technology offers companies to be more focused and empathetic in their approach by matching it all with speed and clarity. The ability to use local languages ​​on digital platforms has broken down many barriers in reaching these clients. At Shriram Life Insurance, for example, non-premature claims are settled within 12 hours given that nearly half of the claims are from the rural sector.

With the technology in place, customers can make changes related to candidates and effectively organize their policies the way they want rather than having an outsider do it for them. It also serves as a focal point for major organizational changes despite offering a wide range of value-added services.


Various digital interventions based on application technology, chatbots, voice bots, artificial intelligence, virtual BoTs billing, sales force software, etc. will help customers from rural and semi-urban areas in India to access and benefit from insurance products. Soon, the consumer experience in India’s villages will be on par with that of those living in major cities in India.

(The author is the managing director and CEO of Shriram Life Insurance Company. The opinions expressed above are those of the author and not necessarily those of

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