LIC Chairman VK Sharma has urged its 12 lakh odd agents to use the ‘physital mode of distribution’ i.e. a combination of both – physical and online distribution of insurance policies to grow business and increase the penetration of insurance. He was speaking at an industry event recently in Mumbai.
Speaking about the ‘physital’ technology, Sharma said, “Currently, 70% of the population is not insured. Therefore, insurance awareness is the need of the hour. IRDAI is doing its part by promoting insurance amongst masses through television ads and radio jingles. However, there has to be a strong distribution network to meet the upcoming demand of customers and what is better than a combination of offline financial advice supported by online transaction facility,” he said.
Earlier, TS Vijayan, IRDAI Chairman had said that the insurance regulator encourages insurers to use a combination of physical and digital mode of distribution to promote insurance products. “One way to do is by selling simple policies like term plans, motor policies and so on which do not require personal touch via the digital network whereas, complex products that require proper guidance like ULIPs and cyber insurance can be sold through physical mode,” Vijayan said.