India Stack is a government initiative that provides effortless access to crucial services, boosting both living standards and business ease, particularly for the underserved. This contributes to fair socio-economic growth. India Stack operates on four principles: Presenceless, Paperless, Cashless, and Consent, benefiting everyone, including citizens, businesses, government entities, and freelancers. This system simplifies interactions and the delivery of numerous services in education, health, finance, and e-commerce.
Key components of India Stack include Aadhaar for e-KYC and OTP-based authentication, e-signatures for digital signing, UPI for financial transactions, and DigiLocker for storing important documents. The Account Aggregator feature stands out, allowing users to share financial data with financial entities, replacing traditional income proof, and determining eligibility for credit or insurance.
The digital infrastructure’s expansion has caused a significant increase in digital service usage. The Ministry of Electronics and IT noted that digital transactions jumped from 2,071 crores in FY2016 to 9,192 crores in FY2023. Similarly, the transaction value rose from 1,962 lakh crores to 2,050 lakh crores, underscoring India Stack’s broad acceptance.
The digital shift has also touched the life insurance sector, easing traditional challenges like KYC and proof of income. This facilitates quick approvals, paper-free purchases, and tailored products. India Stack has simplified the formerly daunting process of buying life insurance. For example, a person like Ms. Verma can now easily secure her family’s future. Her identity is instantly verified, financial records reviewed, payments made digitally, and the policy issued within a day, all thanks to India Stack.
Furthermore, insurers can access client financial information effortlessly, enabling them to assess risk profiles and refine underwriting and claim processes. This ensures prompt claim settlements in cases of death or severe illness. The system helps distinguish between genuine and fraudulent claims, fulfilling insurers’ promise of speedy, uncomplicated claim resolutions.
India Stack is more than a technological shift; it’s a fundamental change in how financial services are accessed and delivered, enhancing life insurance firms’ role in securing families’ futures. Emphasizing empathy in technology, insight in data, and trust in transactions is crucial for superior customer experiences and a fairer society. As insurers embrace these principles, they reinforce generations of trust and adapt to a modern, digital, and inclusive India.