This is the next best thing we will see soon on Indian shores.
Already PolicyBazaar is offering the online comparison services. They are offering free facility of maintaining an account with them and the various policies appear as in the dashboard as under:
The consumer by using such dashboards is free to compare and buy. Once he has taken the insurance the dashboard keeps the tracks of the renewal and suggests the new policies based upon the searches saved from time to time.
With the limited exposure, the downside of present such dashboards and apps could be that they are probably using machine coding and algorithm only. They are not using AI and blockchains for creating smart contracts. Such dashboards are at present not going beyond standard products offered by insurance companies. These dashboards do not actually compare policies based upon detailed requirement of the clients. They at present do not offer any custom made solutions to even individuals, hence have limited potential. There is need for many such dashboards which can be easily made available by Insurance Brokers.
P2P Insurance (Peer to Peer Insurance)
The P2P insurance operates on various levels, presently being two such models in operation:
- Premium Level – Like Lemonade, this functions when a social broker consolidates the premium of like risk profile insured and provides them cover. He charges a fee for the cover and at the end of the policy allows the profit from the policy to be given back to the social cause. Now variants of this service could allow user to be given back value additions or refunds even. Hence all such services operates with a assumption that there will be a profit at the end, which is doubtful in Indian scenario.
- Deductible Level – Inspeer, of France, has come up with another solution. On the existing insurance policy, as you go for higher deductible, the premium reduces. Hence on the existing contract go for higher deductible and let that higher deductible become a concern of the peer group maintained by Inspeer. The service is completely free if there are no claims. In the case of a claim, InsPeer keeps a small percentage of the claim paid by the insurer. InsPeer allows clients to get full insurance coverage by leveraging a responsible and solidary community. If I have a claim, I declare it to my insurers and upload the confirmation letter to InsPeer, who then collects the money for me among my partners. I can then easily transfer the money to my own account. This can happen after my claim is paid or even whilst is in the process. The best part is that Inspeer inspires the insured to increase the deductible to keep the dependency on insurers low. Imagine, you will be able to include such damages which give you losses, but can not be claimed due to policy exclusions, like losing cameras in foreign countries and not being able to lodge police complaints, like covering for your inventory losses, like covering for that huge Rs. 5 Lakh deductible in a Industrial All Risk Policy etc etc.
So personally I feel that both P2P insurance models will be soon seen in Indian markets. “Premium Level” for small individual insurance groups which are distributed yet homogeneous types like home or shop insurances. The “Deductible Level” will be seen for large corporate who want seamless coverage for their assets.
We are quite close and in touch with all the InsurTech above and once launched they will be easy to understand and adopt.
Coming Soon – Robo Advisory & Gamification – Increasing the interaction of humans with machines