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Consequences of Covid-19: Changes in the Indian Insurance Market

The Covid-19 pandemic has demonstrated the value of life insurance, the financial market participants in India say. Insurers record an increase in premiums in particular. Before the spread of coronavirus, even an educated population group often postponed the policy purchase. Now people’s thinking is changing rapidly, says The Financial Express article.
Consequences of Covid-19: Changes in the Indian Insurance Market

The Indian Ministry of Health has reported that 48.8% of deaths from Covid-19 are in people under the age of 60; this proves how vulnerable even the younger generation is to a pandemic.

Innovative Insurance Products

Innovative life insurance products focused on investment and savings have always been present in the Indian market. “We hope their list will be substantially expanded in the near future. Although the products are aimed on profit, we should not forget that investment insurance always protects owners and guarantees payments in case of an insured event,” says the article author.

The Financial Express journalist recommends buying investment life insurance policies that may not give a very high percentage of return but guarantee large payments during illness or after the death of the owner. “Accumulative insurance is focused on savings and can help in a difficult situation,” the material says.

Digital communication channels

For several months, insurance companies have significantly improved communications using digital communication channels. “Insurers have increased the number of contacts with customers through WhatsApp, chat bots, blogs and mobile applications. Some companies have hired fitness trainers, doctors to conduct video blogs,” the article says. There are currently 504 million active Internet users in India. “Covid-19 made people think about their health, and insurance companies took advantage of this,” says the author of the material.

The strong online capabilities of life insurance companies are sufficient for round-the-clock communication with customers, and people appreciate attention and care in troubled times.

“As a result, the alternative channels of sales and payment acceptance began to grow, self-service increased, and the number of transactions with no LIC office visiting grew,” the article author says.

Most likely, digital communications will only grow, which means that companies will be able to save on agents.

Source: https://www.financialexpress.com/money/insurance/covid-19-aftermath-life-insurance-is-even-more-important-now/1988727/

Photos are from open sources.

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