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The Cost Of Going Digital: Can Legacy Health Insurance Bear The Burden?

The Cost Of Going Digital: Can Legacy Health Insurance Bear The Burden?

Majority of legacy health insurance players have been using digital intermediaries for discovery, distribution, and offering customised plans

Less than 10% of business is generated by digital distribution channels due to the lethargic underwriting and claim processes at the backend

While some legacy players have started investing in advanced tech solutions to fill these gaps, the high cost of these solutions is a big hurdle

They say that technology often moves at such a fast pace that most industries and people don’t even realise that the world around them has changed. Yet, by the time one adapts to tech, it has already become part of the old reality. Which is what makes technology such a powerful disruptor.

But there are behemoths that have weathered wave after wave of technology without changing too much. For long, India’s banking and financial services industry has been something like this. But time takes a toll on goliaths too.

As banking succumbs to the digital wave with the rise of neobanking, the insurance sector is next in line.

With over 30 general insurance and over 24 life insurance companies, India is a bustling insurance market with penetration in rural areas too thanks to public insurance policies and plans. Having played a crucial role in building up this market, the traditional insurance giants are now starting to feel the effects of a tech-dominated world.