Farewell 2023- The Year of AI and More

Since AI’s inception in the 1950s, we’ve witnessed a fascinating journey of innovation, culminating in 2023 – a year so pivotal that Collins Dictionary hailed it as the ‘Year of AI.’ This recognition isn’t without merit. AI has transitioned from an experimental concept to a household name, revolutionizing industries, especially insurance, and redefining business norms.

Insurtech has been at the forefront of this tech-driven transformation, enhancing efficiency and customer experience. The Global Insurtech market is expanding at an over CAGR of 30% and is projected to reach $159 billion by 2031.

Bandhan Life’s AI Odyssey in 2023

At Bandhan Life, our journey in 2023 was marked by groundbreaking AI-driven initiatives. Meet Priya, for instance, a spirited young woman from Udaipur eager to embrace financial empowerment. In the heart of a bustling city, Priya navigates the world of Bandhan Life’s online insurance. Within a few taps, clicks, and a selfie video KYC she would have secured her family’s future.  She would join the league of many individuals who embraced financial security in 2023 and Bandhan Life's AI engines played a crucial role in their journey. 

We transformed life insurance underwriting, by developing real-time, document-free risk assessment algorithms in-house. Our innovations like zero-document underwriting, facial analytics, scan & insure, and affluence score-based financial underwriting are redefining industry standards in India.

The Triumvirate of Transformation: AI, Digital, and Data

AI, data, and digital technology are the three forces heralding this new era of insurance.

Advancements in AI: The integration of natural language and generative AI models has profoundly impacted customer service and marketing. Moreover, predictive and machine learning models have become more accessible, thanks to advancements in cloud and edge computing, facilitating decentralized, real-time decision-making.

Data Protection: The sanctity of customer data has finally received the attention it deserves. The passing of the Digital Data Protection Bill in August underscores our commitment to data security.

Other Digital Tech: Augmented Reality, blockchain, Web3, RPA, quantum computing, and IoT, combined with data enablement and AI, are propelling the insurance industry to new heights. IRDAI’s vision of ‘insurance for all by 2047’ is very much achievable.

Insurtech: The Catalyst of Change

Insurtech is visibly altering the insurance landscape in three significant ways:

Shift in power: The democratization of data has shifted power to those best equipped to harness it, extract customer insights, and offer valuable products.

Generalisation to personalisation: Technology is enabling a move from broad cohorts to individual-level analysis. This shift is crucial for efficient fraud detection and the creation of tailored, hyper-personalised products and services.

The Digital Ecosystem Evolution: In our shared economy, we're witnessing a new digital ecosystem of interdependent specialized businesses. This ecosystem is expected to fuel growth in the life insurance sector, driven by collaborations with fintech, edutech, healthtech, and e-commerce.

Revolutionizing Insurance Across the Value Chain

Product and Pricing: Leveraging IoT and shared data, the industry is moving beyond standalone products. Life insurance products are now transforming into comprehensive financial solutions that fit perfectly into your lives. Bandhan Life's bouquet of products is economical and suits the pockets of our customers perfectly. Check them out now!

Distribution: At Bandhan Life, our tech stack can be seamlessly integrated with partner platforms, ensuring rapid market readiness. We’ve reinvented the customer onboarding journey, transitioning from paper-based forms to digital processes making it easy for distribution.

Underwriting and Issuance: Our digital underwriting process uses alternate data from public and private sources for precise, real-time risk assessment and policy issuance. For certain Bandhan Life products, we issue policies within a few minutes.

Service & Renewals: In the coming years, insurers in India will be looking at leveraging connected devices and IoT to facilitate continuous engagement and tailored renewals.  24/7 vernacular conversational avatars and bots are already setting new service standards across the industry.

Claims Management: Through digital technologies, RPA, and cognitive algorithms, most claim-related processes have been automated, enhancing validation speed and reducing settlement times. At Bandhan Life, we look forward to using AI and machine learning for automated, proactive claims settlement.

2023 has been a transformative year for AI, with Bandhan Life leading the charge in the insurance sector. Our commitment to innovation and customer-centric approaches has set new benchmarks, paving the way for a future where AI, digital technology, and data continue to drive industry-wide evolution.