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ICICI Lombard’s Research Report Sheds Light on Digital Transformation in General Insurance

In Business
July 26, 2023

ICICI Lombard General Insurance, India’s leading private general insurers, has unveiled its latest research report titled “Digital adoption & customers perception about General Insurance in 2023.”

Through surveys conducted across various regions in India, the report provides a comprehensive understanding of customers’ awareness, comfort level, and barriers related to digital journeys in the general insurance sector. Targeting individuals from the banking, financial services, and insurance sector (BFSI) who have embraced digital methods for various activities including purchasing, claims processing, renewal, and interactions with service channels such as internet banking, mobile apps, and online payments, the study encompassed a diverse range of participants aged between 25 and 55 years across vibrant metro cities, as well as Tier 1 and Tier 2 towns.

This ground breaking study aims to assess the evolving digital landscape and customer preferences to further enhance ICICI Lombard’s customer-centric and technologically charged approach towards insurance.

Awareness of Online channels
The survey highlights that 53% of customers are aware that they can purchase a general insurance policy through online channels. But interestingly, when it comes to Health insurance, the percentage of customers who are aware of purchasing policy online is relatively higher
(58%), compared to motor insurance (50%).

ICICI Lombard’s digital channel receives an overwhelming satisfaction rate, with more than 90% of its customers expressing their satisfaction.
Compared to younger age groups, older age groups (those over 45) have utilized online platforms more frequently for account opening and documentation purposes, whereas other activities tend to be less popular with older age groups

Women taking the lead
The incidence of using mobile apps for policy purchases is higher among female customers (35%). Additionally the research report also highlights that a higher proportion of women have used online platforms for account opening, while men demonstrate a greater inclination towards
making online payments (45%).

Sanjeev Mantri, Executive Director, ICICI Lombard General Insurance, commented on the research report, stating, “Digital adoption is no longer just a choice; it has become a necessity for businesses to thrive in today’s rapidly evolving landscape. Our recent research report on
‘Digital adoption & customers perception about General Insurance’ underscores the critical role that technology plays in driving growth, efficiency, and customer satisfaction. Insights from this study reveal that 70% of consumers are inclined towards online platform for general insurance.

In line with these findings, we at ICICI Lombard have always been at forefront to deliver exceptional customer experiences by embracing technology across the customer journey. We strongly believe the future belongs to those who embrace digital innovation and adapt to the changing digital landscape.”

Online Activity in the past year
The study reveals that in the last year, online usage for purchasing general insurance, getting information, and fulfilling service needs is more recent among Metro/Tier 1 customers compared to Tier 2 customer. Customers with a higher likelihood to turn to, or increase their usage of the
online space in general insurance demand improvement in the purchase process the most.

They also have more expectations from the claim process. This indicates that customers are seeking enhanced convenience and efficiency while purchasing insurance online, and emphasises the importance of streamlining and simplifying the purchase journey. Furthermore, fund transfers and documentation have witnessed the highest utilization of digital platforms (websites and mobile apps). Online fund transfers appear to occur more frequently in the West zone (54%) and less frequently in the East zone (30%). Fund transfers have been the primary use of internet platforms in Metro and Tier 1 cities.

Mobile apps are overtaking websites
Among general insurance customers, mobile apps (59%) are the most preferred online channel for insurance-related activities. WhatsApp emerges as a close contender to websites in terms of preferred mediums for online activities related to general insurance. However, for the age group
above 45 years, WhatsApp (37%) and social media (25%) are less preferred options.

Other Key Takeaways:
 With regards to GI, customers in Tier 2 cities have utilised the online platform more frequently for insurance purchase, claim, renewal, and documentation than Metro/Tier 1 customers.
 Consumers claim to have used online medium extensively for Policy purchase, Renewal Payment, and document download, followed by claims.
 Need for human interaction and cyber security are the key roadblocks among both Health and Motor customers from going online.
 75% customers are using online platform for investments and Demat accounts
 Fund transfers have been the primary use of internet platforms in Metro and Tier 1 cities.

This research report exemplifies ICICI Lombard’s ongoing commitment to embrace digital advancements, thus fostering customer satisfaction and solidifying its position as a leader in the insurance industry, ensuring that customers’ evolving expectations and preferences are met
with innovative solutions by understanding customer preferences and leveraging technology to enhance the insurance experience. Based on the insights gained from this study, ICICI Lombard aims to continue developing insurance products tailored to customer needs, while addressing
any gaps in existing policies. The company also plans to launch financial education and awareness campaigns to further extend the reach of insurance among the digitally inclined customer base.