What are Robo-Advisors in Insurance ?
Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

What are robo-advisors in insurance?

What are robo-advisors in insurance?
  • 11th Mar 2021 |
  • 3,260

Traditionally, the insurance industry has been operating on the maxim, “Insurance is ‘sold’, not ‘bought’.” Hence, the intermediary’s role in driving the sales process has been the backbone of this industry.

However, with advancements in technology, consumer behaviours are changing. Consumers today seek expert guidance without the need for face-to-face interactions or making appointments with advisors. This need led to the innovation of robo-advisors.

Robo-advisors, artificial intelligence-driven digital platforms, use sophisticated algorithms to automate the guidance process. Human involvement is minimal or non-existent.

How do robo-advisors work?

  • These automated advisors use simple online questionnaires to collect client data, such as their financial status and insurance goals.
  • Then, the data analytics software processes the information and applies financial planning models.
  • In seconds, the customers get recommendations on the insurance products matching their specific needs.

However, automating the process does not make it impersonal. Robo-advisory platforms capture granular customer data and purchase behaviour. Thereby, these advisors incorporate a wide range of scenarios and parameters.

Thus, customers can find out the type of coverage they need as per their financial situation. They get instant and accurate quotes through the software’s advanced underwriting techniques. Only the human interface is eliminated, making the purchase process easy and self-directed.

Benefits of robo-advisors

  • Lower insurance cost: Robo-advisors are integral parts of the insurance provider’s digital sales channels. The software automates sales and service processes. Such automation with digital interfaces lowers commission costs required for human agents. The insurers pass on these savings to customers through more affordable insurance products.
  • Round-the-clock customer support: Customers can access robo-advisors at any time they choose. The platforms deliver automated advice in a self-service model.
  • Tailored advice: The efficient and superior analysis capability of robo-advisors provides personalized insurance recommendations.
  • Attentive service delivery: Automated correspondence and follow-ups, like reminders on premium payments, improve customer engagement.
  • Fast policy issuance: These virtual intermediaries accelerate the application review process. These instantly assess risk-levels and apply premium loading factors in real-time. It removes the drudgery of document processing and underwriting. Thus, these algorithms reduce policy issuance time.

Are robo-advisors going to make insurance advisors obsolete?

The automated algorithms cannot completely replace an expert insurance advisor’s ‘human touch’. The robo-advisory platforms can handle most “predefined scenarios”. But some customers might have unique queries or needs. Such scenarios can be difficult to predict and build into the planning algorithms.

Moreover, not every customer has a do-it-yourself orientation. They prefer their questions answered in real life.

Hence, the best scenario for customers is when robo-advisors complement the work of human intermediaries. Customers can then make the best use of the available resources as per their preference. For customers more comfortable with human interactions, robo-advisors can serve as initial data capture and analysis tool. It speeds up the transaction process.

Conclusion

Robo-advisors have already become an integral part of insurance purchase. The algorithm’s capabilities will improve with time through machine learning technology. Robo-advisors will increasingly handle more complicated decisions, such as claim processing. Intermediaries and robo-advisors coexisting together will make buying life insurance easier for every customer.

Kotak Lifeoffers the perfect blend of automated policy suggestion and instant quotes with Life Advisors’ skilful guidance. You can choose your objective from pure protection, children’s needs, retirement, savings or wealth creation. You will get personalized suggestions and quotes based on your age, gender, lifestyle habits, annual income, and other details. You can decide to buy directly online or request help from a Life Advisor for making an informed decision.

Visit the website today and avail of the innovative services to buy the right insurance plan as per your financial goals.

Kotak e-Term Plan

Download Brochure

Features

  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492

T&C

Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Are Deaths Due To Coronavirus Covered by Kotak E-Term Plan?

How Much Life Insurance Do You Need?

Do Life Insurance Premiums Increase Every Year?

Difference Between Money Back and Endowment Policy

Always keep your Nominee informed

Role of IRDAI in the Insurance Sector

What is a Single Premium Term Plan and its Tax Benefit?

How To Choose The Right Life Insurance

How To Use Different Types Of Life Insurance For Retirement Planning?

How to Make Death Claims on Life Insurance?

Term Insurance Vs Life insurance: Small Details, Big Differences

Benefits of Term Insurance with Critical Illness Rider

A Step-by-Step Guide: How To Make An Investment Plan?

Why do I Need Life Insurance?

Reasons Why Term Insurance Claims Get Rejected

What is Human Life value and a Human Life Value Calculator?

Loan Against Life Insurance Policy

भारत में जीवन बीमा पॉलिसियों के प्रकार

Is Life Insurance an Investment?

क्या जीवन बीमा एक निवेश है?

Can NRI Buy Life Insurance in India?

Life Insurance Vs. Mutual Funds Investment

Staying Insured While Investing

Difference Between Insurance and Assurance?

Is it Possible to Reduce Life Insurance Premium without Affecting Sum Assured?

Difference Between Term Insurance and Endowment Plan

Term Insurance Claim Process

Difference Between ULIP and Endowment Plan?

Voluntary Life Insurance Policy Vs Group Life Insurance

All about Your Rights and Duties While Buying Life Insurance Policy

Why Online Term Insurance Plans Cheap?

5 Benefits of Gifting Life Insurance Cover to Your Spouse

1 CR Term Insurance Plan: How to Pick the Best 1 CR Term Plan

What Is Investment Insurance?

How Much Life Insurance Cover Do I Need?

All You Need to Know About Life Insurance - Its Benefits, Features, and Types of Life Insurance

Process of Filing A Claim For Life Insurance

Everything You Must Know About ULIP Riders

Is It Advisable To Have Multiple Life Insurance Policies?

How to Customize Your Life Insurance Policy with Riders

What Is Social Impact Investing and How Does It Benefit Society?

Details Required To Be Filled In A Life Insurance Form

Guidelines for Linking Aadhar and PAN to Insurance Policies

Why You Should Never Cancel Life Insurance Policy

5 Reasons Why a Women Should Buy a Life Insurance

Adding A Child to Your Life Insurance Policy?

Can You Apply For A Life Insurance After Getting Heart Attack? Here is Everything You Need To Know

Why Buying a Term Insurance is Important for all Parents

How Many Insurances Should I Have?

5 Things to Consider Before You Buy Life Insurance

Health Insurance VS Life Insurance

Take 100% Responsibility of Your Family with Term Life Insurance

Terms and Conditions of Term Insurance Plans

What Is the Procedure to choose a nomination in life insurance policy?

What Happens If I Stop Paying My Life Insurance Premium?

Different Types of Insurance Policies in India

6 Different Types of Insurance Policies

Do Your Financial Planning with Life Insurance!

Why Do Life Insurance Agents Avoid Selling Term Plans?

Important Features of a Term Insurance Plan

Important Terminologies of Life Insurance

What Is Insurance Rider and It’s Benefits?

6 Things You May Not Know about Life Insurance

What are the Benefits of Endowment Policy?

Key Things to Review in Your Life Insurance Policy Document

Savings cum Protection Plans Secures Your Family from Unforeseen Events

Why Term Insurance for Women is Important?

Role of Life Insurance in Your Financial Portfolio

10 Most Frequently Asked Questions - FAQs on Term Insurance

Compare Different Life Insurance Products Offered By Kotak Life

5 Reasons Why You Need Life Insurance in College

All About Backdating in Life Insurance

When are Millennials required to take out a life insurance policy?

Is Life Insurance For Millennials Really Needed?

Kotak Life Claim Settlement Ratio

Life Insurance with Money Back vs Without Money Back

All about Life Insurance Calculators

Does Life Insurance Pay for Suicidal Death?

“Life” Insurance or “Death” Insurance?

Insurance Changes You Need to Make Post Marriage

Digital Life Certificate for Pensioners Seeking Pension

5 Ways to ensure faster settlement of claims

FAQs on Life Insurance

9 Most Important Things You Must Learn About Paying Life Insurance Premium

Is it Possible to Make Changes in a Term Plan’s Specification Post Purchase?

NRI Premium Payment Options

Choose the Nominee of a Term Life Insurance Plan Wisely

How to Select a Perfect Life Insurance Policy in India to Protect Your Future?

How to Buy a Life Insurance Plan?

How Does Life Insurance Work?

Term Life Insurance Vs Money Back Life Insurance

What Is Surrender Value (Cash Surrender Value) in Insurance and how is it calculated?

How Much Life Insurance Costs and How Much Insurance Cover You Need?

Choosing a Life Insurance Beneficiary

Important Factors to Consider While Choosing the Right Term Period for Your Term Insurance Plan

How Often You Must Review Your Life Insurance Policy?

Does Life Insurance Policy Cover Covid Death?

Health Insurance VS Life Insurance

Can An Individual Buy Multiple Term Insurance Plans?

Sabse Pehle Life Insurance

What Is a Whole Life Insurance Plan?

Different Types Of Life Insurance In India

Is Voluntary Life Insurance the Same as Basic Life Insurance?

What is an Endowment Plan?

What is Insurance Coverage? Overview, Types, and Examples

Life Insurance Policy Closure

Is it Worth Buying Disability Rider on Term Insurance?

Biggest Life Insurance Myths

Unit-Linked Life Insurance (ULIPs) vs. Term Insurance

How to Choose Life Insurance for All Ages?

Choosing Between Short-Term & Long-Term Insurance Plans

Term Insurance Tips for NRIs in India

Customer Awareness on Information Security

Term Life Insurance vs Accidental Death Insurance

Types of Life Insurance Or One Investment, Many Options

Life Insurance and Millennials

Life Insurance for Millennials

Why One Must Buy Term Insurance before 25 Years

What Is Staggered Payment Option Under Term Insurance Policy?

Should You Buy Life Insurance After Getting Married?

What is Group Insurance?

7 Superficial Reasons People Avoid Buying Insurance Online

Life Insurance for Overweight Applicants

Why do most Indians choose the wrong way to buy life insurance?

Types of Life Insurance Policies in India

All about IRDAI

Life Insurance for Overweight Applicants

Insurance Vs Investment - A Guide to Your Financial Goals

Life Insurance vs Mutual Funds

Life Insurance Beneficiary

Guide for Buying Online Term Insurance Plans for Senior Citizens

Think About Life Insurance Sooner than Later

What is the Current Trend in Term Insurance?

What is Minimum Life Insurance Policy?

भारत में सर्वश्रेष्ठ टर्म प्लान कैसे चुनें?

ULIPs: Suitable for all

First Job? Here’s Some Tips on How to Manage Finances

How to Find the Best Term Insurance Plan in Seven Steps

Nominee in insurance - A Complete Guide on nomination in insurance

5 Easy Steps to Buying A Policy

5 Advantages of Life Insurance Going Digital

5 Smart Steps to keep in mind while buying term policies

Life Insurance Plans for Women

Various Term Insurance Premium Payment Options Available in India

Life Insurance and Retirement Planning

जीवन बीमा पर ऋण

जीवन बीमा क्या है?

5 Common Life Insurance FAQs and Answers

Different Kind of Deaths that are Not Covered in a Term Insurance Plan

Why Your Family Should Know About Your Life Insurance Policy?

How to Choose the Right Life Insurance Policy for Your Age?

Why You Should Buy Term Insurance under the MWP Act (Married Women’s Property Act)?

All About Life Insurance and How It Works?

What is Life Insurance?

Why is Medical Test Important While Buying a Term Insurance?

How to Calculate Human Life Value(HLV)?

Who Is A Nominee In A Life Insurance Plan?

Does Family History Affects your Term Life Insurance Rates?

Term Insurance Vs Car Insurance: A Budgetary Choice You'll Regret

Types of Insurance You Must Invest in for Secure Future

Why Life Insurance Is Always a Smart Decision

Can a Term Plan be the Substitute for a Retirement Plan?

What is Sum Assured in Endowment Policy?

Important Life Insurance Terms You Must Know

Does Life Insurance Cover Terminal Illness?

When Should You Review Term Life Insurance of Yours?

How to Revive the Lapsed Life Insurance Policy?

Benefits of Buying Term Insurance Plan for Senior Citizens in India

Comparing low premium term insurance Is Not the Only Factor While Buying Life Insurance

Term Insurance for Home Loan: How Term Plan Helps in Paying Off Home Loan?

5 Things to Keep in Mind While Buying Life Insurance Policy

What is Underinsurance & The Dangers of Being Underinsured

Beware of Phishing & Fraud Insurance Calls

What Is The Life Insurance Penetration In India And How Does It Compare Globally?

Why Renewal of Term Insurance Plan is Important

What Should One Consider Buying: Term Insurance or Traditional Life Insurance

Term Plan with Return of Premium (TROP)

Can You Transfer Life Insurance Policies to Another Company in India?

What Should One Expect During the Medical Evaluation for Life Insurance?

What Is Financial Planning?

In India, should NRIs purchase life insurance?

Top 5 Common Life Insurance Myths and Facts

Importance of Checking Claim Settlement Ratio before Buying Life Insurance

Best Insurance Plans in India

वरिष्ठ नागरिकों के लिए ऑनलाइन टर्म इंश्योरेंस प्लान खरीदने के लिए गाइड

Is It Time to Review Life Insurance Policy of Yours?

Most Common Life Insurance Riders to Enhance Your Existing Policy

What is the Difference Between Limited and Regular Pay Insurance Plan?

How to Buy a Term Life Insurance Online

How to Choose a Life Insurance Policy

How Do Term Insurance Plans Differ for Smokers?

A Term Insurance Guide for Disabled People