Insurance finds its roots in ancient India from the 4th century. It can be found in Indian writings, including Kautilya’s Arthashastra, Manu’s Manusmriti, and Yagnavalkya’s Dharmashastra. These texts describe insurance as a practice where people pool their resources to be shared during disasters like fires, floods, and epidemics. This early form of insurance can be seen as a prototype of today’s insurance.
Since those times, insurance has come a long way and is now one of the country’s fastest-growing sectors. Insurance has always been a subject of trust. Deciding whether to purchase insurance can be challenging when there is uncertainty about whether insurance companies will provide assistance in times of need. However, the answers are becoming more evident, especially with the sector’s recent advancements. Today, we can find reassurance that over 1 million death claims are paid every year. Throughout the years, numerous changes have contributed to achieving this feat.
Privatization: A Game Changer
In the late 1990s, a significant change happened in India. The government allowed private companies to enter the insurance market, creating competition. This was a game-changer that brought new ideas, better services, and more choices for customers. The entry of private insurance companies brought energy to the industry, promoting market-driven practices and offering a wider range of products to meet customers’ changing needs.
Technology is changing the world, and these scenarios are not science fiction anymore. Many insurance companies use the latest tech like AI, ML, and softwares which can revolutionize the industry and deliver enhanced value to policyholders. Technological advancements are helping insurance companies simplify their processes, enhance customer satisfaction, and strengthen their ability to detect fraud.
Many steps have been taken to safeguard the interest of the policyholders. In life insurance, once three years have passed since the policy started, the life insurance company cannot deny a claim, even if the policyholder made a mistake unknowingly. If we talk about health insurance, according to IRDA’s mandate, if a health insurance policy has been active for eight years, no insurance company can refuse a valid claim from the policyholder.
Problem and the Solution
Even with such advancements and reforms, the main problem in the sector is strengthening the complaint handling processes. Insurance companies often delay, reject, or settle the claim for a lesser amount, hurting the financial position of the policyholder. They feel like they have been cheated. To make things worse, the policyholder feels helpless and alone. With a lack of information on what to do at these times, customers often need to pay more attention to the possibility of getting their money back. And that is where Insurance Samadhan comes into the picture. With expert assistance, Insurance Samadhan empowers policyholders to navigate claim-related problems, ensuring fair resolutions and reclaiming the trust at the heart of the insurance journey.
What’s the way forward?
The insurance industry in India has a bright future ahead, thanks to various factors such as regulatory changes, technological advancements, government backing, and growing awareness. The industry is expected to witness trends like product innovation, multiple distribution channels, advanced technology, improved claims management, and evolving regulatory norms. According to a research report by Swiss Re, the Indian insurance industry is projected to become the sixth-largest market globally by 2032. Thus, it has the potential to offer numerous opportunities.
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