The coronavirus outbreak and subsequent blockage of business activity negatively impacted life insurance companies. “Even the largest life insurers in India recorded a negative increase in premiums in the sector of minus 29% in March and April. I believe that industry growth will be constrained by the negative effects of coronavirus in the short term,” said Sumit Rai, CEO of Edelweiss Tokio Life Insurance.
With increasing public awareness of COVID-19, the demand for life insurance policies will begin to grow. Market participants say that an increasing number of people are declaring their intention to buy LIC services“. Our sales have grown through the digital channels in May. People began to purchase policies despite financial difficulties. Some of these products are inexpensive, others - with a large coverage,” says the company executive.
According to expert, the insurance market will grow in the long term, as companies have become more flexible and learned to sell insurance products without intermediaries and agents.
“We will have to follow the rules of social distancing, and interaction with customers will largely occur in digital form. The entire industry will focus on technological innovation,” added Rai.
Photos are from open sources.