By Sankaranarayanan Raghavan, Chief Technology & Digital Officer, IndiaFirst Life
The life insurance industry in India has undergone a remarkable digital transformation over the past two decades. Before we delve into this further, it’s important to keep in mind a few roles: Customer, Distributors (Individual agents, corporate agents (Banks, etc), Broker,s and Direct/Digital), and Insurer. In the early 2000s, purchasing a life insurance policy was a cumbersome process. The process involved filling out lengthy forms, photocopying and submitting various documents, visiting banks for financial statements, and undergoing medical tests at diagnostic centres. These complexities often discouraged people from purchasing insurance or led them to choose simpler plans that did not fully meet their needs.
While customers faced these hurdles, distributors encountered their own set of challenges. Tracking policy issuance, renewals, and commissions was often complicated and inefficient, making it difficult to manage existing clients, let alone expand their customer base. Insurers, too, struggled with lengthy product rollouts and limited innovation due to rigid systems and processes.
Fast forward to today, and the landscape has changed dramatically. Customers can now educate themselves about insurance products, compare offerings, and use intuitive online calculators to assess their needs more effectively. IndiaFirst Life, for instance, offers one of the highest numbers of user-friendly calculators in the industry. Suitability analyses help customers identify the right products, while digital tools enable seamless verification of KYC and bank details through account aggregators, all with customer consent. Medical assessments can be conducted via facial analysis or at the customer’s doorstep. Every step of the customer journey is analysed to enhance the overall experience, and instant policy issuance is now possible thanks to advanced analytics, external integrations, and rule-based engines.
The emergence of Generative AI (GenAI) is further revolutionising customer engagement. Traditional, structured, single-language chatbots are being replaced by intelligent, multilingual systems that can respond to customer queries in their preferred language—via text or even voice. These AI-powered assistants are now integrated into popular platforms like WhatsApp, offering unparalleled convenience. Hyper-personalisation is another breakthrough, allowing insurers to tailor offerings based on individual preferences and inputs. Policy documents are now securely accessible through digital repositories like e-Insurance accounts and DigiLocker, eliminating concerns about lost paperwork.
Distributors, who serve as the vital link between insurers and customers, are also reaping the benefits of digital innovation. New product information is easily accessible, training for field agents is conducted virtually in multiple languages, and GenAI-powered bots provide instant clarifications. App and web-based tools streamline policy tracking and follow-ups, enabling distributors to focus on productivity and business growth. These advancements are accelerating the progress towards the national goal of “Insurance for All by 2047.”
For insurers, modern product configurators, microservices-based architectures, and data-driven models allow for rapid development and deployment of region-specific, segment-specific, or distributor-specific products. Each new offering sets a higher benchmark for customer-centric innovation, reinforcing the principle that the customer is truly at the centre of the insurance ecosystem.
Looking ahead, technologies like Agentic AI are opening new possibilities. As these innovations continue to evolve, they promise to further transform the industry and deliver even greater value to customers, distributors, and insurers alike.