Four out of ten investors policyholders do research online but buy policies from their financial advisors or agents, says Nilesh Sathe, Member (Life) IRDAI. He was speaking at an industry event held recently in Mumbai.
He says that emergence of new technology in insurance would not affect agents. He said, “Around 40% of prospective investors do research about the various insurance products online, but eventually end up buying it from an advisor or agent, simply because of the convenience and ease in buying it from someone you know.”
He further said, “Agents are the backbone of our industry and nothing can over power or replace them. With the advent of new technology, many agents fear that investors would shift to online channels to consume financial products. However, in reality, people prefer buying insurance products through agents or their financial advisors.”
He further said that although technology will help strengthen insurance distribution and increase penetration, people require a handholding of advisors to make investment decisions.
Highlighting the efforts of distributors, Sathe added, “There has been a ten-fold increase in the number of insurance policies sold since post-liberalisation and it has all been possible because of our intermediaries like agents and brokers.”
At the event, IRDAI Chairman TS Vijayan too urged insurance agents and brokers to leverage technology to grow their business. He said, “Even if technology is adopted extensively, insurance products distribution needs a ‘human touch’. However, one has to understand that the agent requirement and growth depends on the company’s growth strategy.”
