In an evolving insurance landscape, Syed Meraj Naqvi, CEO & Principal Officer of Riskbirbal Insurance Brokers, shares his insights on how technology is transforming the traditional approach to risk management and policy customization. With the insurance market facing growing complexity, especially for MSMEs, Syed discusses key industry challenges, regulatory pressures, and the rising importance of transparency. He also highlights emerging trends, such as the role of AI, IoT, and blockchain in creating tailored, efficient solutions for businesses.
Q- How do you see the role of technology evolving in transforming the traditional insurance landscape, particularly in terms of risk management and policy customization for businesses?
I believe technology is redefining the way we approach risk management and policy customization for our clients. By leveraging AI, machine learning, and advanced analytics, we can now offer more accurate risk assessments and tailored pricing models. For us, this means not only better understanding our clients’ unique needs but also helping them anticipate potential exposures more proactively.
Furthermore, we can create highly customised insurance products that match the unique risk profiles and operational quirks of various businesses. Through self-service portals, automated policy issuance, or seamless claims management, digital platforms have further improved our ability to interact with our clients, adding a new degree of efficiency and transparency to the process as a whole.
We are also exploring the use of Internet of Things (IoT) devices for real-time risk monitoring. For example, sensors can be used to continuously monitor the operational environment of a manufacturing unit, enabling immediate response to any abnormalities. Similarly, telematics data in fleet management helps reduce risks by improving driver behaviour. And we’re keen on adopting blockchain technology to streamline contract management and improve transparency, ensuring faster and more secure claim settlements.
Q- What are the biggest challenges facing insurance brokers today in maintaining trust and transparency with clients, and how do you think the industry can address these challenges?
In my opinion, one of the most significant obstacles facing brokers nowadays is the intricacy of insurance products. Clients frequently find it difficult to comprehend complex policy details, which can lead to misunderstandings and erode confidence. We’ve invested in streamlining our communications to address this, whether it be through user-friendly tools, instructional materials, or more comprehensible policy explanations.
Another key issue is the perception of conflict of interest, where clients might feel that brokers favour insurers’ interests. Our strategy here is to maintain absolute transparency in fee structures and adopt a more advisory-driven approach, so the focus remains squarely on the clients’ needs. Data privacy is another area of concern. With growing digital interactions, we must safeguard sensitive client information through strong cybersecurity measures.
Finally, in a digital-first world, building trust without face-to-face interactions is a challenge. We prioritize constant engagement, frequent updates, customized guidance, and success stories that demonstrate our dedication to their business, which is why we place a strong emphasis on personalized digital touchpoints.
Q- Given the regulatory environment and the growing complexity of risks, what strategies should brokers and insurers adopt to remain compliant while ensuring they meet the evolving needs of businesses?
In today’s environment, staying compliant while meeting the diverse needs of businesses requires a proactive approach. We ensure that our teams are always ahead of the curve on regulatory changes, using automated compliance tracking to streamline our internal processes.
We also recognize the growing importance of environmental, social, and governance (ESG) criteria in our client’s decision-making. We’re committed to helping them align their risk management strategies with these values. Regular training sessions ensure that our workforce is equipped with up-to-date knowledge, enabling them to offer solutions that are both compliant and impactful.
Q- What major trends do you observe in the insurance market, especially in how it caters to MSMEs, over the next 5 years?
I observe that the MSME sector is undergoing a profound change. We predict a sharp increase in demand for exceptionally specialized micro-insurance products over the next five years. These solutions will be more accessible to small businesses by providing them with cost-effective coverage and streamlined claims procedures.
Furthermore, we anticipate an increase in embedded insurance solutions as the volume of digital transactions rises. These solutions enable businesses to obtain coverage directly through existing platforms, such as payment gateways or e-commerce. As MSMEs become more digitally connected, cyber insurance will also become more popular. Additionally, as demand for risk management as a service rises, smaller businesses will benefit from having assistance in proactively managing and mitigating potential risks.
