The ban on importation of vehicles following the global pandemic has hampered the growth trajectory of the motor insurance sector of Sri Lanka. That being said, the sector has managed to stay afloat by embracing digitalization for continuity of services. Many players in the motor insurance market leaned on automation to operate against the backdrop of restricted travel and contact.
How is motor insurance coping?
Most insurers have turned to digitalization to ensure uninterrupted delivery of services. As opposed to the manual environment, automated claims process is faster, more effective and accurate. DigiEye is a service which has been designed to automate the claims assessment ensuring a faster output when compared to the conventional approach.
DigiEye operates around a pay-as-you-go model for upgrades. Through such an application, customers are able to submit required details virtually & receive compensation within a shorter period of time as opposed to several days. The damage will be assessed via live streaming, pictures, videos, etc and all documentation can be uploaded to the platform where it will be automatically archived for later retrieval.
DigiEye eliminates the hassle of having to waste time at the site of the accident owing to the fact that it can record the details via video, pictures and live streaming and locate the accident location via GPS. After the necessary information is provided to the insurer, the customer can be on their way! Given the simpleness of this solution, it has been acclaimed with mostly positive reviews. Many see it as the future of motor insurance claims management not just in Sri Lanka but all over the world as well. DigiEye is a Sri Lankan product which aspires to be a global brand in motor insurance claims assessment.
Is investing in technology worthwhile?
The world has changed significantly over the past two years. Every process, business has become automated in one way or the other. The Work from Home culture has given rise to a generation of individuals who prefer to have everything within arm’s reach, at the tip of the fingers. Having realized this, the Government too recently made substantial investments to entirely digitalize issuance of birth, death and marriage certificates for greater transparency and efficiency. Furthermore, the Presidential Secretariat also updates its official website regularly with updates regarding vaccination to keep the public in the know. This actively indicates an appetite among the general public for digitally delivered services.
With Sri Lanka having announced the building of five technological parks within the next few years, it is fair to assume that the country is generally headed towards a technological revolution. It is prudent, due to that very reason, to embrace digitalization and align all enterprises with national priorities for greater relevance.
The digitalized motor claims process is a game-changer because it eliminates the hassle of having to process bundles of physical documents as well as having to make several trips back and forth to the insurance provider, garage and so on..
What are the future prospects of the motor insurance industry?
Globally, the motor insurance industry is valued at USD 880bn (2019). According to latest available statistics, in 2019, premiums from motor insurance accounted for more than 40% of the overall non-life insurance premiums. An analysis by Modor Intelligence indicated that this percentage is likely to expand in the ensuing years given the rising demand from developing countries primarily in Asia. When compared to insurance products, motor insurance will continue to be in demand although the demand may fluctuate on account of various factors such as economic prosperity & policy decisions.
Sources:
https://www.mordorintelligence.com/industry-reports/global-motor-insurance-market https://assets.kpmg/content/dam/kpmg/lk/pdf/2020/11/sri-lanka-insurance-report-november-2020.pdf x