Mr.K V Dipu - Senior President  & Head - Operations & Customer Service, Bajaj Allianz General Insurance Co. Ltd.

Imagine a time when insurance policies were written on clay tablets and stored in dusty archives. The insurance industry has come a long way since those ancient days. Today, we embark on a thrilling journey through time, exploring the fascinating evolution of operations as a function in insurance. From archaic practices to cutting-edge technologies, the tale of insurance operations is nothing short of captivating. Like a symphony that unfolds over time, the insurance industry's operational functions have continuously adapted and innovated to harmonise with the changing needs of customers and the dynamic landscape of risk. Join us on this melodious journey as we explore the captivating evolution of operations in the realm of insurance.

Back in the day, insurance operations was complicated. Every policy, claim, and customer detail was meticulously recorded in countless ledgers. With vast paperwork, insurance agents navigated this labyrinth with diligence and precision.

As the world advanced into the digital age, the insurance industry embraced technology with open arms. Computers revolutionised the landscape, replacing dusty ledgers with sleek electronic databases. Insurance operations became faster, more efficient, and much more accessible. In the vast world of insurance, where risk meets protection, a profound transformation has been underway - the evolution of operations.

The Technological Symphony

As technology swept across the stage, the insurance industry embraced the power of innovation. With the advent of computers and digital databases, insurance operations underwent a transformative shift. Tedious tasks were automated, reducing errors and processing times. With data becoming the new currency, insurance operations embarked on a new journey. According to a report by PwC, 72% of insurers have identified digital transformation as a critical driver of growth and efficiency.

Integrating big data and advanced analytics brought forth a wealth of insights into customer behaviour, risks, and market trends. This newfound intelligence empowered insurers to craft personalised policies and enhance underwriting accuracy. A McKinsey survey showed that companies using advanced analytics in their underwriting processes experienced a 30% reduction in loss ratio.

Robotic Process Automation (RPA) has emerged as a transformative technology in the insurance sector. Automating repetitive and rule-based tasks, RPA enables insurers to streamline their operations, enhance efficiency, and improve service. Additionally, RPA facilitates seamless integration between disparate systems, enabling faster data retrieval and analysis, ultimately leading to better decision-making and risk assessment. Furthermore, by automating routine tasks, insurance professionals can focus on more strategic and value-added activities, fostering innovation and growth within the industry. As RPA continues to evolve, it is expected to play a crucial role in driving digital transformation across the insurance landscape in India, providing a competitive edge to those embracing this technology.

The audience demanded more personalised experiences and superior service. In response, insurance operations adopted a customer-centric approach. The stage was set with 24/7 customer support, mobile apps, and self-service portals. Customers took centre stage, and their voices were heard like never before. A study by EY revealed that 87% of insurers believe customer experience will be the primary differentiator by 2025.

As technology continued to evolve, a new set of performers took the spotlight - automation and artificial intelligence. Insurance operations experienced a revolution as smart machines enabled seamless claims processing, policy renewals, and even chatbot-driven customer service. According to a Deloitte survey, 76% of insurers have already implemented some form of AI in their operations, with more planning to do so in the near future.

From ancient origins to cutting-edge technologies, the evolution of operations in insurance has come full circle. Yet, as the world continues to change, the symphony of operations will remain timeless, always ready to adapt to the next act of the insurance saga. An anonymous quote says "As the enigma of insurance unravels, operations emerge as the architects of dreams, turning uncertainties into certainties." In this grand tapestry of evolution, let us remember that once an enigma, insurance operations have now become the beacon of protection and promise of a secure future for us all.