According to the Sri Lanka Insurance Report published by KPMG in 2020, the industry is bound to rely heavily on digitalization in years to come.

Insurance is still seen as a luxury in contexts such as Sri Lanka. In 2019, the industry had 27 insurance companies, 67 brokering firms & 16 loss adjusters. Sri Lanka’s penetration grew marginally in the same year to 1.31% from 1.26% the previous year. Although the industry is fairly mature and sophisticated, Sri Lanka lags behind when compared with most of its regional counterparts.

In order to improve the perception of insurance among Sri Lankans, digitalization needs to be looked at seriously. Incorporating technology enables insurers to deliver services with greater speed, efficiency and accuracy when compared to manual processing of claims which is complicated, time consuming and even expensive.

What options do insurers have?

One of the most popular apps for automation of OPD claims is DigiMed. The homegrown product has overwhelmingly positive reviews and offers users many benefits including convenience and speed of delivery. The app is free for download from Google Play or App Store and has a pay-as-you-go model for upgrades.

How DigiMed works is by obtaining necessary documentation digitally and processing the claim within a few hours; the app also serves the function of a digital archive storing the information for later retrieval. The app makes processing claims highly efficient for insurers as well as organizations that compensate employees in the event of hospitalization. DigiMed improves transparency and enables the claim applicant to monitor the process from start to finish from the comfort of his/her phone as opposed to calling or physically visiting the insurance firm. These improvements can benefit the industry significantly in the post-pandemic context.

What does the future look like for insurance in Sri Lanka?

Globally, insurance is being perceived and pursued with greater interest by millennial and Gen Z categories following the global pandemic. The agility the industry has shown by being among the very first industries to embrace digitalization may have contributed to this. Also, insurance industry was quick to alter their offering to include coverage for Covid-related hospitalization or death which is a testament to the industry’s agility and adaptability.

The industry has so far shown resilience in the face of the global pandemic therefore it is safe to suggest that the industry’s growth trajectory will continue in the years to come. Improving public awareness and accessibility to insurance should be prioritized. The Sri Lankan insurance sector should look at decentralizing insurance and positioning it as a necessity rather than a luxury; technology can play a vital role in achieving this feat.

Sources:
https://assets.kpmg/content/dam/kpmg/lk/pdf/2020/11/sri-lanka-insurance-report-november-2020.pdf
https://www.ft.lk/financial-services/Review-of-the-performance-of-Sri-Lankan-insurance-market-in-2019/42-707910#:~:text=Insurance%20penetration%20which%20is%20reflected,countries%20in%20the%20Asian%20region.