Insurtech in Pakistan: The Future of Insurance & The Rise of Digital Insurance - Kapeel Kumar

The Future of Insurance

The insurance industry in Pakistan is ripe for disruption. The country has a young and growing population, but insurance penetration is still relatively low. This presents a huge opportunity for insurance companies to use technology to make insurance more accessible and affordable to the masses.

In Pakistan, digital insurance is being adopted at an impressive pace; The Pakistani insurance industry is already undergoing a digital transformation, with the rise of Insurtech startups and the adoption of new technologies by traditional insurers. This is being driven by several factors, including the growing penetration of smartphones and the Internet, the increasing demand for insurance products, and the need for insurers to improve efficiency and reduce costs.

Insurtech is the use of technology to improve the insurance industry. This can include anything from using AI to automate claims processing to using blockchain to create more secure and transparent insurance contracts.

The Insurance industry in Pakistan is still in its early stages, but it is growing rapidly. As the industry matures, we can expect to see even more innovation in the way that insurance is delivered.

The future of insurance in Pakistan is bright. Insurtech is poised to revolutionize the industry and make insurance more accessible and affordable to the masses. As the industry matures, we can expect to see even more innovation in the way that insurance is delivered.

Here are some of the benefits of Insurtech for consumers:

• More convenient:?Insurtech can make it easier for consumers to buy insurance policies and manage their claims. For example, consumers can now buy insurance policies online or through mobile apps.
• More affordable:?Insurtech can help to reduce the cost of insurance. This is because insurtech companies can use technology to streamline the insurance process and eliminate unnecessary costs.
• More personalized:?Insurtech can help to create more personalized insurance products and services. This is because insurtech companies can use data analytics to understand the needs of individual consumers.
• More transparent:?Insurtech can help to make the insurance process more transparent. This is because insurtech companies can use technology to provide consumers with real-time information about their policies and claims.

The SECP has approved a new tech-based life insurance product that uses AI and data analytics to track policyholders' health. This is a major milestone for the insurance industry in Pakistan,

• Insurance companies will need to address some challenges, such as digital commoditization and macroeconomic uncertainties.
• They will also need to be able to handle requests from different communication channels instantly.

The Rise of Digital Insurance

Traditional insurers in Pakistan are adopting new technologies to improve their operations. For example, State Life has launched a digital platform that allows customers to buy and manage their insurance policies online. They are also using insurtech to manage over 175 million people under the Sehat Sahulat Program.

Here are some of the benefits that State Life Insurance has seen from its insurtech initiatives in the Health Program:

• Improved customer experience:?Customers can now file claims online, 24/7, and have access through the dedicated call center. This has made it more convenient and efficient for people to interact with State Life.
• Reduced costs:?RPA has helped state life Insurance to automate many of its manual processes, which has reduced costs and freed up staff to focus on more strategic tasks.
• Increased efficiency:?State life Insurance is now able to process claims more quickly and accurately, thanks to the use of machine learning and big data analytics. This has improved customer satisfaction by up to 97% and reduced the time it takes to settle claims.

State Life is a major player in the insurance industry, with over 69% market share, according to data provided by IAP in 2022. This gives them the potential to be a game-changer for the industry as a whole.

• TPL has also started a campaign for mobile-app using insurtech.
• Jubilee Insurance has implemented insurtech solutions to improve customer experience. These solutions include machine learning and big data analytics to gain insights into customer needs, and a mobile app that allows customers to purchase, manage, and file claims online.
• EFU uses insurtech to provide customers with a seamless digital experience. They offer a mobile app, chatbot, and digital onboarding platform to make it easy for customers to purchase, manage, and file claims online. EFU is committed to investing in insurtech to stay ahead of the competition and meet the evolving needs of its customers..
• Salaam Takaful Limited’s become the first ‘Takafultech’ Shariah compliant Insurtech in Pakistan promoting technologically-enabled Shariah compliant solutions via Salaam App an Insurtech Ecosystem & Salaam Takaful launched the Pay As You Drive takaful product, which is a telematics-based insurance product that tracks and records car mileage and contribution payment based on the number of recorded driven kilometers.
• Small players in the insurance industry, such as IGI Insurance, SPI Insurance, Adamjee Insurance, UIC Pakistan, Pak-Qatar, Askari General Insurance, and Habib Insurance, are also investing in insurance technology by offering online access, online payments, and claim assistance.

The rise of Insurtech is having a positive impact on the insurance industry in Pakistan. It is making insurance products more accessible and affordable, and it is improving the customer experience. Insurtech is also helping to make the insurance industry more efficient and competitive.

There are many insurance companies already operating in Pakistan. These companies are using technology to address some of the key challenges facing the insurance industry, such as:

• Low insurance penetration:?Insurance companies are using technology to make insurance more affordable and accessible to the masses. For example, some companies are using mobile apps to allow people to buy insurance policies directly from their phones.
• Fraud:?The insurance industry is a target for fraudsters. Insurance companies are using technology to combat fraud, such as using AI to analyze claims data for signs of fraud.
• Customer service:?The insurance industry has a reputation for poor customer service. Insurance companies are using technology to improve customer service, such as using chatbots to answer customer queries 24/7.

Here are some of the key trends that are driving the growth of Insurtech in Pakistan:

• The rise of mobile:?The increasing use of mobile phones in Pakistan is creating new opportunities for insurance companies. Mobile apps make it easy for people to buy insurance policies and manage their claims on the go.
• The growth of the middle class:?The growing middle class in Pakistan is creating a demand for new insurance products and services. Insurance companies are well-positioned to meet this demand by offering innovative products and services that are tailored to the needs of the middle class.
• The increasing focus on customer experience:?Insurance companies are putting a strong focus on customer experience. They are using technology to make it easier for customers to buy insurance policies, manage their claims, and get help when they need it.

Conclusion

The rise of insurtech is a disruptive force in the insurance industry, but it is also an opportunity for insurers to improve their operations and reach new customers. Insurtech startups are already making waves in Pakistan, and traditional insurers are starting to adopt new technologies. The future of insurtech in Pakistan is bright, and it is sure to have a significant impact on the industry in the years to come.

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