Technology is crucial in redefining conventional business models and improving consumer experiences in today’s quickly changing insurance industry. The Insurance Self Network Platform (ISNP) is a technological advancement revolutionising the insurance sector by streamlining procedures, cutting costs, and enhancing accessibility. In this blog, we shall examine the idea of ISNPs, their salient characteristics, advantages, and effects on the insurance industry.
Understanding Insurance Self Network Platform
A digital platform known as an Insurance Self Network Platform, or ISNP, links various participants in the insurance ecosystem, such as policyholders, insurance companies, intermediaries, and service providers. To enable smooth interactions and transactions between various parties, this platform uses cutting-edge technology like blockchain, artificial intelligence (AI), and data analytics.
Insurance Self-Service Platform:
Insurance companies might offer this platform to their clients and policyholders. Users can access information about their insurance coverage, manage their plans, submit claims, and make payments, all without requiring the assistance of a customer care agent.
Insurance Network Platform:
This could reference a digital platform linking several parties involved in the insurance sector, including insurers, brokers, agents, and policyholders. These parties may communicate, set policies, and process claims more easily with the help of such a platform.
Insurance Self-Networking Platform:
This might be a platform that enables people or organisations to design and control their own insurance networks. They might utilise this platform to connect with organisations or people who share their values to share resources, reduce risk and build a network of self-insurance.
Insurance System for New Policies:
Insurance Self Network Platform could also represent a particular insurance system or software created for issuing and administering new insurance policies. A design like this might speed up the underwriting, pricing, and issuing procedures for insurance.
What Are The Guidelines Of IRDA For This?
These rules, titled “Guidelines on insurance e-commerce,” were released by IRDA by Section 34 of the Insurance Act of 1938 and Section 14 of the IRDA Act of 1999. The ideal way to define a self-network platform is as an electronic platform that may be created by any applicant with IRDA clearance.
According to the goal of these regulations, an insurance agent is not permitted to establish a separate insurance self-network platform but may use, if available, the Insurance Self Network Platform of the relevant insurer. However, the insurer will ensure that these rules are followed on behalf of these platform-using insurance agents.
The following organisations have been classified as “market participants” by Insurance SNP:
I) Registered Insurance Companies
ii) Registered Insurance Intermediaries
iii) Registered Insurance Agents appointed by Registered Insurance Companies
iv) Any other individual whom the Authority has so authorised.
How To Apply For Permission As An Insurance Self Network Platform (ISNP)?
Setting up an ISNP for Insurance e-commerce activity in India requires prior authorisation.
- The applicant who wants to establish an ISNP for carrying out insurance e-commerce activities must submit their application using the required ISNP-1 form.
- The applicant must pay fees of Rs. 10,000 plus any relevant taxes.
- Upon being satisfied with the applicant’s qualifications, the Authority may approve, provided that the ISNP complies with the pertinent requirements outlined in the Regulations.
Online Offering By Insurance Self Network Platform:
The applicant’s ISP may be accessed through a desktop or mobile website, a mobile app, or both. Only those market participants to whom the Authority has given a registration certificate must be registered and included in the applicant’s ISNP. Accordingly, an insurer’s Insurance Self Network Platform (ISNP) is limited to registering insurance intermediaries; no other insurers are permitted. Only insurers, to the degree permitted by the relevant regulations on its ISNP, and no other insurance intermediaries or insurance agents may be registered by an insurance intermediary.
The applicant’s ISNP website shall display on its website the following information:
- The applicant’s full legal name
- Address details for the applicant
- The applicant’s contact details, including phone and email
- The number on the Certificate of Registration and its duration
- Category of the applicant’s registration certificate
- Contact details and a link to the Authority’s website are provided to aid policyholders in filing a complaint.
- Any other information about the applicant or policyholder that is pertinent.
Pricing Of The Products Sold Through ISNP:
The insurer will choose the cost of each item. Additionally, it is the insurer’s responsibility to ensure that product pricing complies with standards set by the Authority. As stated by the Authority, insurers may provide a discounted price for the product when it is sold through their ISNP. Any applicant’s differential price for products offered on ISNP must be the same.
The customer must choose insurance from the Insurance Self Network Platform based on his needs, finances, and other factors. He will need to complete the necessary paperwork, most of it online, except for a few situations like a health examination (for life insurance) and an inspection of expensive property. In this situation, the policyholders must be sure of the advantages of keeping their records in an electronic format; otherwise, they risk not using the insurance e-commerce features. If the policyholders are prepared to preserve their policies in electronic form with the designated repositories for this, they may purchase insurance through ISNP.
How do Insurance Self Network Platforms Benefit the Insurance Industry?
The insurance sector can gain from the Insurance Service Network Platform in several ways:
- Improved Data Access and Analysis: ISNPs collect a ton of information from social media, wearables, and IoT devices, among other sources. This data can be analysed to acquire insights into consumer behaviour, risk factors, and market trends. Insurance companies can use this information to improve risk assessment models, target marketing campaigns, and underwriting procedures.
- Improved Customer Engagement: ISNPs can help policyholders and insurers communicate more effectively. Customers can check their policies, submit claims, and receive tailored advice through apps and internet platforms. This not only improves client satisfaction but also encourages repeat business.
- Risk reduction: ISNPs allow insurers to monitor hazards in real time. For instance, auto insurance telematics data from linked automobiles can offer insights into driving behaviour, assisting insurers in rewarding safe driving and lowering accident rates.
- Fraud Detection: The Insurance Self Network Platform can be used to identify fraudulent claims more efficiently. Advanced analytics can spot behaviour patterns, such as discrepancies in medical data or unusual activity following a reported incident, that may point to fraud.
- Cost reduction: ISNPs can assist insurance businesses in lowering operational expenses by streamlining procedures and automating specific jobs. This may result in more competitive insurance pricing and more profitability.
- Product innovation is influenced by the availability of extensive data from ISNPs. For instance, insurers might create usage-based insurance plans, wherein clients pay premiums on how frequently they use an insured good or service.
- More Personalized Insurance Coverage: ISNPs enable more specialised insurance coverage. Insurers can customise coverage and price based on a person’s unique requirements and activities, such as health practices, driving patterns, or property usage.
- Faster Claims Processing: ISNPs can speed up claims processing through automation and data analytics. As a result, policyholder payouts will occur more quickly, and customer satisfaction will increase.
- Risk mitigation: Policyholders can receive proactive risk mitigation advice from ISNPs. For instance, depending on information from connected sensors, homeowners might get alerts and suggestions for preventing water damage.
- Market Expansion: ISNPs can assist insurers in pursuing new demographics and markets. Insurers can draw in previously underserved or ignored customer categories by providing cutting-edge and customised goods.
- Regulatory Compliance: The Insurance Self Network Platform can help insurers adhere to changing regulatory standards. The capacity to gather and analyse data can assist insurers in proving compliance with industry norms and best practices.
- Competitive Advantage: By providing more creative and client-centred solutions, early adopters of ISNPs can acquire a competitive edge in the insurance industry.
Conclusion
The insurance sector is being revolutionised by insurance self network platforms, streamlining processes, enhancing consumer experiences, and encouraging innovation. As technology develops, ISNPs are likely to become even more crucial to the insurance industry and provide insurers and policyholders more advantages. While there are obstacles, ISNPs are a development worth keeping an eye on in the future because of the potential for a more effective and customer-focused insurance market.
