The market for online insurance in India is predicted to reach a whopping The life insurance industry in India is forecasted to expand at a compound annual growth rate of 5.3% from 2019 to 2023. There are several factors that contribute to the growing popularity of online life insurance. Here’s a look at some of them.
Rising Internet and Smartphone Penetration
The number of internet users in India is estimated to increase from 749 million in 2020 to more than 1.5 billion by 2040. The penetration rate of smartphones is also rising exponentially and is projected to go up from 54% in 2020 to 96% in 2040. As more and more people go online, insurance services are reaching even the remotest parts of India. Today’s customers research products and services online, including insurance products, to make purchase decisions. This is leading to a rise in people who buy life insurance online.
Digitalization has accelerated, especially in the post-pandemic era. Also, people have become more aware of the need for health insurance. This increased life insurance penetration in the country to 3.2% in 2020, from 2.82% in 2019.
More Informed Decision-Making
Customers find it easier to research and compare life insurance products online on the provider’s website or app to choose the one best suited to their needs. They no longer need to worry about agents trying to earn their commission by misleading customers. By reading all the terms and conditions by themselves, they can make a more informed decision regarding buying an insurance plan. Also, one can check the claim settlement ratio with the help of an online aggregator. The results are based on customer reviews and are, therefore, authentic. Finally, when customers provide the necessary details by themselves, they minimize the chances of errors.
Since no agents or mediators are involved when customers buy life insurance online, there is no fear of manipulation while choosing a product. So, chances of fraud are also minimized.
The online route does away with various overheads, including those related to insurance agent commissions. Moreover, customers can seek out discounts while applying online. For instance, products like the Zindagi Plus plan from Edelweiss Tokio come with discounts on a large sum insured. Therefore, online insurance products are more affordable.
When one applies for life insurance online, one can upload all the documents digitally. These documents are also verified online. Thus, the application process becomes quick and hassle-free.
Consider buying life insurance online from a reputed provider that offers benefits like discounts, zero paperwork, and a seamless application process.