Why it's time to say goodbye to 'one-size-fits-all' in insurance
When it comes to the insurance industry, change is the only constant, says Anup Rau, MD & CEO of Future Generali India Insurance
Companies will target newer age groups, such as millennials and gen Z, who traditionally tend to underestimate the importance of health insurance; Image: Shutterstock
In chaos theory, the butterfly effect is the idea that small things can have a non-linear impact on a complex system. The flapping of a butterfly's wings in the Amazonian jungle, for instance, could create tiny changes in the atmosphere that lead to a tornado in Texas. Just like the minuscule yet deadly novel coronavirus in 2019 triggered a storm of changes that swept across all sectors in the world, including the insurance industry.
Analysing risks and planning for a crisis is what the insurance business is about. While the pandemic has wreaked havoc on the industry, it has done better than most other. The industry has changed structurally, mostly for the better. The changes, forced into the industry in a tearing hurry, have proved to be sticky and durable. And whether intended on not, have put the customer firmly at the centre. Let’s dive in.
For instance, an innovative cyber insurance product, especially now, due to the increased risk of vulnerability, cyberattacks, data and identity theft. Companies will target newer age groups, such as millennials and gen Z, who traditionally tend to underestimate the importance of health insurance. Innovative products in insurance are not restricted to just health either. Hourly car insurance, women-only driver’s insurance that rewards good drivers with lower premiums, pet insurance, trip delay or cancellation insurance just for honeymoons (anyone who tied the knot during the pandemic will vouch for the need for this)—innovation is the mantra for success.
While the physical demands of travel to the office and other locations and cities have diminished, the demands on the employee's time have increased and will continue to stay elevated. Or worse, in most cases, employees have to fend for themselves and take responsibility for their sanity and well-being. Distance between the organisation and employees, and between employees themselves, could lead to the serious consequence of the company distancing itself from the customers. Of all the changes, this is the most significant and impactful one. How this is dealt with will have the biggest bearing on the future and success of an organisation.
“The secret of change is to focus all of your energy, not on fighting the old, but on building the new,” said Socrates. How we build the new will separate the wheat from the chaff and the winners from the also-rans.The next five years promise plenty of drama and upheaval. Let's grab the best seats in the house and enjoy the show.
The author is the Managing Director & CEO of Future Generali India Insurance.