2. Reducing the time taken for policy issuance
After making the payment for insurance, customers have to wait for multiple days for underwriting to be completed and the policy to get issued, particularly in the case of term life insurance. There is, however, a scope to speed up this process. With the emergence of data layer in the India Stack and the National Health Stack, insurers can explore fetching data for underwriting, using the application programme interface, and create a risk profile of the customer. The financial data can be acquired with the help of account aggregators and health data using the Ayushman Bharat Health Account.
Similar to a credit score for availing loans, a risk score can be built for insurance that quantitatively depicts the health and lifestyle of the customer. A comprehensive risk score can be computed using a connected digital footprint (wearables and lifestyle applications) in conjunction with health records data. The availability of risk scores together with a host of alternate data sources, available for both financial and health parameters, can help insurers make underwriting decisions faster, leading to customers buying insurance like any other product on ecommerce websites.