Insurance Weekly : Your Weekly Dose of Expertise

Welcome to the 4th edition of your weekly source of quick and insightful updates. In today's fast-paced world, staying informed is key to success, and we understand the value of your time.

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1.???? ICICI Lombard launches AI-powered chatbot for health insurance claims

·??ICICI Lombard General Insurance has launched an AI-powered chatbot for health insurance claims on September 8, 2023. The chatbot, called "Ava," can help customers with a range of tasks, including filing claims, tracking the status of their claims, and getting information about their policy.

·??Ava is powered by artificial intelligence and natural language processing, which allows it to understand and respond to customer queries in a natural way. The chatbot is available 24/7 and can be accessed through ICICI Lombard's website and mobile app.

·??This is a major development in the Indian insurance industry, as it is the first time that an AI-powered chatbot has been used for health insurance claims in India. Ava is expected to make it easier for customers to file and track their claims, and it could also help to reduce the workload on customer service representatives.

2.???? SBI General Insurance partners with Digit Insurance to launch online motor insurance policy

·??SBI General Insurance has partnered with Digit Insurance to launch an online motor insurance policy on September 9, 2023. The policy, called "SBI DigiSure," can be purchased through SBI General Insurance's website and mobile app.

·??SBI DigiSure is a comprehensive motor insurance policy that offers coverage for third-party liability, own damage, and other add-on covers. The policy can be purchased in minutes and does not require any paperwork.

·??This is a major development in the Indian insurance industry, as it is the first time that a major insurance company has partnered with an insurtech firm to launch an online motor insurance policy in India. The partnership is expected to make it easier for customers to purchase motor insurance online.

3.???? New regulations for health insurance come into effect

·??New regulations for health insurance came into effect on September 10, 2023. The regulations, which were issued by the Insurance Regulatory and Development Authority of India (IRDAI), aim to make health insurance more affordable and accessible to consumers.

·??The key provisions of the new regulations include: A cap on the sum assured for individual health insurance policies has been removed. The waiting period for pre-existing diseases has been reduced from four years to one year. The portability of health insurance has been made easier. The coverage for mental health has been enhanced.

·??The new regulations are expected to make health insurance more affordable and accessible to consumers. They are also expected to boost the growth of the health insurance sector in India.

4.???? Insurance penetration in India remains low

·??The insurance penetration in India remains low, at around 3%. This means that only 3% of the country's GDP is spent on insurance.

·??According to the World Bank, the insurance penetration in India is expected to reach 5% by 2025.

·??There are a number of factors that contribute to the low insurance penetration in India, including: Low awareness of the importance of insurance. Lack of trust in insurance companies. High cost of insurance. Complex insurance products.

·??The government and the insurance industry are taking steps to increase the insurance penetration in India. These steps include: Educating the public about the importance of insurance. Making insurance products more affordable and accessible. Streamlining the insurance regulatory framework.

5.???? Climate change is a growing risk for the insurance industry

·??Climate change is a growing risk for the insurance industry. The increasing frequency and intensity of extreme weather events is putting a strain on insurance companies' balance sheets.

·??In 2022, the global insurance industry paid out $102 billion in claims related to natural disasters. This was the highest annual payout on record.

·??The insurance industry is expected to face even greater losses from climate change in the future. This is a major challenge for the industry, and it is important for insurance companies to take steps to mitigate their climate risk.

Weekly Insights :

Many Indians have the intention to buy insurance, but they don't follow through.

According to a new report by SBI Life Insurance and Deloitte, 97% of Indians agree that life insurance coverage must increase over the years, as reported by Business Standard. However, only 52% of Indian households have any form of life insurance.

There are a number of reasons why Indians are hesitant to buy insurance. The report found that many people have apprehensions about insurance, such as the belief that mere ownership of a policy does not mean protection or that policies can be forfeited in the event of fund shortage. Others are concerned about the high cost of insurance or the hassle of paperwork.

The report also found that Indians are less likely to buy insurance when they are young and healthy. As people get older and their health declines, the cost of insurance goes up.

The report concludes that there is a need to raise awareness about the importance of insurance and to dispel some of the myths and misconceptions that people have about it. By doing so, we can help more Indians protect their financial security and achieve their life goals.

Here are some of the vital statistics mentioned in the article:

·???97% of Indians agree that life insurance coverage must increase over the years.

·???Only 52% of Indian households have any form of life insurance.

·???80% of respondents acknowledged the role of life insurance in achieving financial immunity.

·???71% of respondents who do not have insurance acknowledged the significance of having a policy.

·???The average Indian household allocates 52% of its annual income for financial security.

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