Insurance Sales Poised For Big Changes In 2016

Insurance sales might undergo big changes in 2016. These initiatives are expected to be a win-win proposition for policyholders.

To boost insurance penetration, the Insurance Regulatory and Development Authority of India (IrdaI) is mulling to allow simple Over the Counter (OTC) products, which could be sold in rural as well as urban areas.

These products would have a standard structure of features with standard pricing. These products are expected to be low ticket basic insurance coverage in the areas of life insurance, health insurance, motor insurance and cattle insurance.

Similarly, a universal health insurance scheme is set to be launched in 2016. This might have Rashtriya Swasthya Bima Yojana (Rsby) merged with it. Family covers for four members would be available with option of including a senior citizen in it. This, however, could alter the pricing.

IrdaI is also exploring making insurance popular online via e-commerce. It has formed two groups – comprising life insurance and general insurance, respectively – to look into the opportunities in insurance e-commerce.

Insurance e-commerce would lower the costs and bring in higher efficiencies and ensure greater reach. This Investment In India would also leverage the government’s Digital India initiative, aimed at creating a digitally empowered society and knowledge economy.

On after sales servicing and premium benefits, telematics is expected to gain more traction. While only a handful vehicles fitted these devices that are designed to capture data including number of kilometers clocked every day, average speed, vehicle location and engine run time, many more devices are hitting the marketing causing prices to come down.

Although the real intent is to use the data to incentivise or disincentivise customers based on driving behavior, insurers are currently focused on collecting data. When adequate data is collected, this will be used to give premium benefits to policyholders.

Similarly, mobile phones could be used for not only purchasing products but also for claims intimation and settlement. Electronic policies will also be accessible from the mobile phone.

Source: https://www.policymantra.com/blog/insurance-sales-poised-for-big-changes-in-2016/