Dawn Of The Digital Insurance
Giving credence to a market study by Mordor Intelligence, the online insurance market in India is expected to reach a value of approximately INR 220 billion by 2024. Out of this, online life insurance sales are expected to grow at approximately 5% of the individual annualized new business premium by 2020, whereas the non-life insurance sales are expected to grow at more than 15% of non-life retail insurance business. This growth trend, expected to grow stronger in future, is primarily attributed to the increase in smartphone usage and internet penetration.
Digitisation, per say, has spurred the growth opportunities in this sector, giving room to improve market share and profitability of the insurers, as well as offer tangible value to customers. The pandemic has furthered the online interaction between insurance companies and consumers to transform and ease their insurance buying experience, especially during this crisis year. Giving us a sense of how the past year panned out for PolicyBazaar’s digital business, its COO, Sharat Dhall expounds, “We have always been a digital-first brand. Since its inception, we have been working towards building solutions digitally for our consumers.
Along with transforming how consumers buy insurance in India, the pandemic gave an added push towards buying insurance online. We are seeing users who were initially hesitant or reluctant to go digital come on to our platform and understand the ease with which they are able to understand the product and buy the same too.
This significant shift towards online can be attributed to the ease, with which users are now able to compare and buy online. We, along with the insurers, have built significantly easier product journey’s that do not let users drop off or feel overwhelmed with lack of information. Services such as video & teleconsultation for underwriting plus, with the multitude of payment options now available buying a policy, is relatively now more secure and easier than doing it offline.”
On The Changed Consumer Behavior
The ongoing Covid-19 pandemic has swiftly changed the behavior of customers towards online channels, and the changes are here to stay in the post-pandemic world as well. Highlighting some of the irreversible yet crucial changes in this space, Dhall admits that the customers now want more from the category; they are seeking out more from both product construct to expecting a certain level of service standards.
Policybazaar, in this regard, is ensuring that these customer requirements are taken care off through their relationship managers in over 50 cities across the nation. The company is also working with a few leading insurers to find out ways to reduce the dependence on Medical Underwriting for a certain segment of customers. On the marketing side, they are now holding regular webinars and sessions with industry experts. These webinars are not only product-oriented but include information on food nutrition, healthy living, yoga, meditation and more.
The crisis is further providing several opportunities for brands with digital models that invest ambitiously and timely in their online business. “Such brands are expected to emerge as market leaders in the years to come. There are several initiatives that if implemented in the right manner can act as a catalyst for the successful transition of a business to the new digital reality,” he adds.
Given that people have started to enjoy the comforting feeling of shopping online, brands need to offer transparency and convenient omnichannel solutions for the customers, he suggests.
On Ecommerce Delivery In Tier 2- Tier 3 Markets
Tier 2 & 3 contribute significantly to PolicyBazaar’s next growth targets. Through their business operations, they constantly look for opportunities on how they can increase their reach in the smaller cities and make themselves the first preferred choice of the customers. “If we are able to do so, we are sure we will also be able to increase the insurance penetration in these cities that still do not feel the need for insurance,” hopes Dhall.
In order to make sure that their customer base increases in tier 2 and 3 cities, their topmost priority is winning the trust of the customers by providing the best solutions at the most affordable prices. In addition, they aim at designing solutions that rightly meet the specific needs and requirements of the customers.
“To enhance our reach in the smaller cities and to make insurance products within the reach of all, we have also come up with offline stores. These stores work as experience centres and are a one-stop solution for all the insurance needs of a customer. Through our offline stores, we aim at bringing maximum people under the insurance umbrella as people living in tier 2 and 3 cities are the ones who need insurance the most,” he asserts.
