Data Drives Hyper-Personalisation in Insurance Products and Pricing, Say Experts

Data Drives Hyper-Personalisation in Insurance Products and Pricing, Say Experts

The combination of vast data and emerging technologies, like Generative AI (GenAI), is enabling insurers to offer more tailored products and pricing, according to industry experts. Ravi Vishwanath, CEO of Narayana One Health and Director at Narayana Health Insurance, emphasized that health insurance in India remains largely transactional, typically used to cover hospitalisation costs. However, with the power of consumer data, insurers can now offer proactive health solutions to reduce hospital visits by creating personalised nudges that encourage healthy behavior.

Vishal Gupta, CEO of PhonePe Insurance Broking Services, highlighted that hyper-personalisation is even possible in motor insurance. Gupta explained that women drivers, often considered safer, can now receive policies with tailored pricing. Similarly, data-driven insights allow insurers to differentiate pricing for drivers in cities versus those on highways, which are typically riskier.

Avinash Naik, President & Chief Information Officer at Bajaj Allianz General Insurance, spoke about the vast amounts of unstructured data the insurance industry has accumulated over the years. With technologies like GenAI, insurers can now summarise this data to improve underwriting, product pricing, and fraud detection. Anand Sanghi, Chief of Retail and Government at ICICI Lombard General Insurance, added that insurers are increasingly leveraging data from social media platforms like LinkedIn, Instagram, and Facebook to curate personalised products and solutions.

In a separate panel discussion, industry leaders discussed the impact of economic challenges, such as fluctuating interest rates, on the insurance sector. Jitendra Attra, CFO of SBI General Insurance, noted that while many general insurers rely on investment income, a prolonged period of low-interest rates could impact profitability. He mentioned that if investment income falls, insurers may need to tighten underwriting practices to maintain financial stability.

Dhiren Salian, CFO of ICICI Prudential Life Insurance, commented on how life insurers are better positioned to manage interest rate risks compared to general insurers. Life insurance premiums, invested in instruments that hedge against short-term interest rate fluctuations, allow insurers to offer long-term financial security, unlike general insurance policies which are renewed annually.