Insurance is getting popular as uncertainty and risks are all around. Here’s a look at 4 trends that will drive the insurance sector.
In the pre-internet era, customers would depend on the neighbourhood insurance broker or agent to get insurance policies. Agents would often try to sell the highest-premium plan to earn a fat commission. This documentation process was tedious too. This trend, however, is obsolete and unreliable.
Internet and smartphones have changed how common people buy insurance and how insurance companies are marketing their products and reaching out to customers.
Let’s take a look at five trends that could drive the insurance sector
Digitisation To Give Further Boost
The online revolution has indeed brought a marked change in the insurance sector. You can now compare and pick the best insurance product for you online. This has made buying insurance more reliable than dealing with agents or brokers. You can even choose an adequate cover for your needs and make hassle-free claims. Buying insurance online helps you in fetching a lower premium deal and fast delivery. Insurers too have realised the potential of selling insurance online. Hence, they are marketing it big, coming up with promotional plans, offers to lure customers considering the stiff competition in the market. The need for insurance has risen with a rise in financial awareness and digitisation has given it a further boost. Investing, insuring and saving via smartphones is set to increase as more people use the internet.
Demand For Home Insurance Set To Rise
Buying your own home is the dream of many. But a home without an insurance plan can be fraught with many risks. Property related insurance is expected to rise with affordable housing, low Home Loan rates, and insurance getting affordable. With government offering relaxation in taxation in home loans, insurance in this sector will see a massive shift in the future.
Indian Railways now offers Travel Insurance at a cost of just Re 1 when you book tickets from their website. This necessitates from the fact that travelling is highly uncertain and full of risks. This trend is likely to see an upward swing with more people looking forward to traveling the world. Even flights are offering travel insurance to cover risks of unforeseen accidents, deaths or disability.
Insurance Premiums And Tech Convergence
Insurance companies are using the technology advancement and offering plans that could benefit customers. For example, the premium of certain plans is linked to the daily physical activity of the insured. A customer can win a good discount on premium if the physical activity and calories burnt are of a higher level. The insurance companies track a customer’s physical activity through smartphone apps or health devices like Fitbit to get a better idea about health risks.
Although at a nascent stage, another good example of this is the use of telematics in motor insurance. A well-known auto insurance company is offering a product which is in sync with your driving pattern. Driven by technology, the insurance company accesses data such as vehicle diagnostics, real-time driving information, the location of the vehicle and safety-related information. A safe pattern rewards you a discount on renewal.
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