In a panel discussion hosted at CII 25th Insurance & Pensions Summit themed “Insurance & Pensions: Potential to Insuring a Billion + Indians,” M Jagannath, Managing Director, Life Insurance Corporation of India, shares how the reach of Insurance can be extended to far off villages in an approachable manner. He also addresses how the insurance sector can leverage the ongoing AI wave to its benefit. He holds a Post-Graduate Diploma in Marketing International Post-Graduate Diploma in Life Insurance, General Insurance & Risk Management from the Institute of Insurance and Risk Management (IIRM), Hyderabad. He is an associate of the Insurance Institute of India, Mumbai.

What are some effective strategies for making insurance more accessible, especially in rural areas?

Accessibility in rural areas hinges on two key factors: simplicity and trust. Simplifying policies and offering products that are easy to understand and tailored to the specific needs of rural customers—makes insurance more approachable. Educating policyholders about their coverage is essential, as it builds understanding and confidence in the products.

One primary challenge is risk evaluation. Accurate assessment of an individual’s health and financial background remains difficult, as detailed personal data is often unavailable or incomplete in rural areas. While digital solutions are improving access to information, insurers still face uncertainties in evaluating risk profiles without sufficient health or financial data.

How important is trust in expanding insurance accessibility?

Trust is crucial. The intermediaries, those delivering insurance products, need to build trust with prospective customers. When customers trust the person offering the insurance and feel confident in the product, they are more likely to adopt it. Building strong local relationships through trusted intermediaries is key to expanding insurance in rural markets over the long term.

Offering affordable, simplified products designed to meet basic coverage needs can greatly enhance accessibility in rural areas. Making these products affordable and straightforward will encourage more widespread adoption, enabling insurers to effectively reach underserved communities.

How will AI and technology shape the future of insurance?

AI and digital technology are set to play a transformative role in the insurance sector. To achieve ambitious targets like “Insurance for All by 2047,” leveraging digital infrastructure will be essential. AI can streamline the insurance process, automate claims, and improve risk assessments, which would enhance overall efficiency and customer satisfaction. However, to fully capitalize on AI, greater adoption across the industry needs to be achieved, along with continuous improvement in technology use.

AI can enhance transparency by providing more efficient and accurate claims processing, minimizing delays and misunderstandings. When customers see consistent, reliable outcomes, they build trust in the industry. By making policy terms clearer and offering fast claim settlement, AI can help ensure that customers feel confident in receiving promised coverage, which is essential for fostering trust.

With strong economic growth and accelerated digital adoption, achieving “Insurance for All” could potentially happen before 2047. The combination of AI-driven efficiencies, customer education, and robust economic expansion is creating an environment where insurance becomes more accessible, trusted, and integral to financial security in everyday life.

What role does customer awareness play in the evolution of insurance?

Customer awareness is critical. There’s often a gap between the high settlement rates (e.g., 98-99%) that insurers achieve internally and the public perception of insurance, which tends to focus on unresolved claims. Addressing this gap is key to building credibility. Educating customers about the reliability of insurance and emphasizing the trustworthiness of providers are essential steps that can be achieved more effectively through digital channels and AI.