19 FINANCEOUTLOOKINDIANOVEMBER, 2025Instead of asking, "How much should we pay after a loss?" insurers now ask, "How can we reduce losses before they happen?"From `Pay When It Happens' to `Prevent Before It Happens'In the past, insurers checked risks once a year, used a lot of paperwork, and only acted after customers made claims. Premiums were set using old data, there was little communication, and prevention was not a main goal. This often led to costly payouts, higher premiums, slow settlements, and losses that could have been avoided.Now, insurance acts as a partner in resilience. Instead of waiting for losses, insurers look at daily risk signals, promote safer habits, automate claim processes, and send early warnings. For example, if heavy rain is expected in an area, insurers can warn homeowners ahead of time, suggest safety steps, and get emergency help ready.This proactive approach helps everyone. Families have fewer losses because risks are managed early, and governments have less pressure to provide relief. Insurers handle fewer claims and pay out less, which can help keep premiums lower. As insurance becomes easier to get and more useful, more people are likely to buy it, making financial protection stronger for everyone. India's regulatory body, IRDAI, is actively pushing digital reform and innovation.What's Powering This TransformationSmarter decision systems: Today's insurance systems use weather alerts, past incident patterns, location details, and real-time data to spot risks early. This helps insurers warn customers and get ready faster, especially in areas prone to floods or cyclones.Sensors and smart devices: Cars now come with driving-behavior sensors, buildings use water-level or smoke sensors, and farms use soil and climate monitors. These devices help detect risk quickly and encourage safer habits like rewarding good driving or alerting homeowners about water leaks before they become floods.Satellite and climate mapping: Satellite information and digital maps help predict landslides, floods, and other hazards with growing accuracy. Insurers can use this data to price policies fairly and support safer home planning in vulnerable areas.India's digital advantage: Thanks to programs like Digital Public Infrastructure, Account Aggregators,
< Page 9 | Page 11 >