According to a Max Life Insurance senior official, online sales are gaining traction in the life insurance industry. One out of every five-term contract is purchased directly by customers rather than through agents and advisers.
Max Life Insurance Deputy Managing Director V Viswanand claimed, “Indians purchased 12.5 percent of overall term plans by premium online last financial year. Although saving is still low at less than 1% of total premium via the channel.”
“It’s started to become a substantial channel for some organizations like ours… In FY21, Max Life’s market share was close to 30%. Currently, Max Life has a one-fifth market share in India’s online term purchases. While our offline market share is one-fifth of that,” he said.
Viswanand told PTI that the average age of policyholders purchasing policies online is 36 years old. And the company has implemented various unique programs for online consumers based on their feedback.
“We also pioneered a lot of financial auto underwriting, leveraging credit bureau partnerships.” As a result of our bureau partnerships, we don’t ask for any additional proof from 60% of our e-commerce consumers. Customers have experienced less friction as a result of this,” he said.
He also mentioned that the company offers premium vacations to consumers after a few years, with no questions asked, as well as specific leave choices.
How COVID-19 has affected the Life insurance industry!
According to him, the advent of the COVID-19 pandemic has resulted in increased insurance awareness and the deployment of technology has accelerated at this time.
“In the first wave, we witnessed elderly people being admitted to hospitals and deaths occurring, but in the second wave, we saw that there was no age prejudice. It had no prejudice against co-morbidity. Mortality was common, and I believe individuals realized that they are not infallible when it comes to their own lives. “Just because you’re healthy now doesn’t mean you’ll be healthy tomorrow,” he explained.
The epidemic has raised public awareness, as seen by the large increase in sales of pure protection plans following COVID-19.