Insurance Cannot Grow on Claims Alone

 Why the next phase of insurance growth will be driven beyond the claims cycle_

For decades, insurance growth has been measured largely through operational metrics: claims efficiency, settlement speed, loss ratios, and regulatory compliance.

While these remain essential, they no longer define success in a market that is increasingly informed, digitally aware, and value-conscious.

Insurance today faces a paradox. It is one of the most essential financial products, yet among the least emotionally connected. Penetration remains uneven, particularly among first-time buyers, younger professionals, gig workers, and informal-sector earners. Despite awareness campaigns and improved claims processes, insurance continues to be perceived as something that is purchased, renewed, and largely forgotten—until a claim arises.

This structural distance between insurer and customer has quietly limited the industry’s ability to scale said Jumar Preena CEO of CH17 Loyalty whose digitization program for the insurance started almost 3 years ago. I am glad that the industry has now seen the benefit of this change to smart issuance of policy and secondly authentication of it, he added

Claims Efficiency: Necessary, But Not Sufficient

There is no question that claims efficiency matters. Faster settlements, transparent processes, and digital authentication have strengthened confidence and addressed long-standing consumer frustrations. These developments are laudable and represent a critical foundation for trust.

However, claims performance alone does not attract new customers. Nor does it meaningfully influence purchase decisions at scale. For most consumers, claims are hypothetical until they become personal. Engagement, on the other hand, is lived daily.

The industry’s challenge, therefore, is not awareness. It is relevance.

The Structural Engagement Gap

Insurance is, by design, a low-frequency product. Policies are purchased annually, compliance-driven, and rarely interacted with beyond renewal or claim events. In contrast, the most successful consumer industries—banking apps, retail platforms, digital wallets, and mobility services—thrive on frequent, visible engagement.

This contrast has consequences:

Low brand recall between renewals, Weak emotional attachment, Price-led switching behaviour

Limited success among younger and first-time buyers

Digitization alone does not solve this gap. Faster systems operating within the same engagement framework still result in the same distance between insurer and insured.

From Protection to Participation

A more effective model is now emerging—one that reframes insurance not as a standalone obligation, but as part of a broader, everyday value ecosystem.

In this model, insurance continues to serve its core purpose: protection, compliance, and actuarial stability. Alongside it, however, sits an engagement layer that integrates insurance into daily life through visible, practical, and lifestyle-linked benefits.

This approach does not replace insurance fundamentals. It complements them.

By aligning insurance with services such as healthcare access, retail privileges, fuel, travel, supermarkets, and essential services, insurers shift the relationship from annual compliance to ongoing participation.

Insurance begins to feel less like a grudge purchase and more like a usable, tangible advantage.

Why This Matters for Penetration

When insurance is embedded into everyday experiences, several important shifts occur:

• Perceived value increases before purchase
• Engagement moves from annual to weekly or even daily
• Trust is built through familiarity, not just promises
• Retention improves without price reductions

For first-time buyers, gig workers, micro-entrepreneurs, and younger professionals—segments traditionally difficult to penetrate—this model lowers psychological barriers and increases relevance.

Insurance becomes visible where people already transact, rather than requiring people to seek it out. Rethinking Distribution Without Compromising Compliance. Lifestyle-linked engagement also reshapes distribution.

Instead of relying solely on branch visits or agent interactions, insurance can be introduced at trusted touchpoints: retail chains, fuel stations, digital platforms, QR-enabled onboarding points, and essential service environments.

Importantly, this can be achieved without compromising regulatory discipline. Digital authentication, policy validation, and compliant onboarding platforms enable insurers to extend reach while maintaining governance and control.

The result is wider accessibility, stronger segmentation, and better alignment with demographic and firmographic realities.

• The Strategic Outcome for Insurers
• For insurers adopting this approach, the benefits are structural rather than cosmetic:
• Improved penetration without aggressive pricing
• Stronger customer confidence and trust
• Higher lifetime value
• Reduced churn
• Better data-led segmentation and insight

Most importantly, insurance stops feeling like a grudging purchase and starts functioning as a practical, everyday proposition.

The Way Forward

Claims will always matter. They are central to the promise of insurance.

But claims alone will not define the next phase of industry growth.

The future lies in confidence, relevance, and everyday engagement—where insurance moves closer to daily life, without losing its core purpose. The shift from protection alone to participation is not a marketing trend; it is a structural evolution.

As the industry continues its digital journey, the real question is no longer how efficiently claims are paid, but how meaningfully insurance integrates into the lives it is designed to protect.

AXIS | Sector Brief

An ongoing exploration of cross-industry digital frameworks and engagement-led growth.