The online sales of non-life insurance policies has witnessed a substantial increase over the years. Industry officials say increasingly, customers prefer renewing their policies online owing to the hassle free process.
At a recent conference, TS Vijayan, IRDAI Chairman said, “It’s difficult for insurers to acquire clients via the internet. However, urging them to renew existing policies is easier.”
Krishnamoorthy Rao, MD and CEO, Future Generali India General Insurancebelieves, “The initial focus should be on getting customers to renew policies online. Online sales have been continuously rising post-demonetization. The low acquisition cost and increasing awareness amongst the masses have largely contributed to it.”
Commenting on the barriers involved in digital sales, he added, “The online medium, however, lacks personal touch and therefore complex products that require special assistance cannot be sold effectively.”
Experts believe although online purchases represent a small component of insurance activity in India today, the numbers are set to rise as we progress to the age of digitalization.
The online insurance market is over Rs.700 crore according to a Boston Consulting Group (BCG) report. Non-life insurance market accounts for a major share in it. Among the policies sold, those for motor, travel and health contribute the most to online sales.