Microinsurance targets low-income households and individuals with little savings. Low premium, low caps, and low coverage limits are the characteristics of microinsurance plans. These are designed for risk-proofing the assets otherwise not served by traditional insurance schemes.
Because microinsurance comprises of low-premium models, it demands lower operational cost. This article covers insights on how AI can help bridge customer gaps for microinsurers.
Challenges in Distributing Microinsurance Policies
Globally, microinsurance penetration is just around 2-3% of the potential market size. Following are the challenges that companies providing microinsurance policies face-
- Being a forerunner in a competitive landscape.
- Making policies accessible through online channels.
- Developing user-friendly interfaces understandable to a layman.
- Improving the organization’s operational efficiencies by automating repetitive processes.
- Responsive support system for both agent and customer queries.
- Quick and easy reimbursements and claim settlements.
Fortunately, technology is capable of solving customer support, repetitive workflow, and scalability challenges to a great extent. The subsequent section measures the benefits of AI-based techno