It’s necessary to redefine prospective clients and their insurance requirements for the rapid growth of the insurance industry.
At a time when the country’s economic environment is fastly shifting, the insurance industry does not seem to be keeping up with the pace. Both life and non-life insurers have been preoccupied with growing their client base by marketing insurance to the middle and higher classes. If you’re feeling stuck and looking for a new solution, it may be worth looking into an insurance lead generation company.
To demonstrate their development, life insurers emphasize the number of policies and the “first premium equivalent.” Non-life insurers continue to tout their results, which are heavily reliant on statutory business. Their expansion is mostly fueled by the healthcare industry. Health insurance premiums have been the largest contributor to the non-life insurance market, increasing by around 24% over the previous three years.
Table of Contents
1. Increasing Ticket Size
Motor and health insurance has been a loss-making venture for several years. As a result, the annual premium income increase is a mirage generated by a commercially unviable business area. Insurers often point to increases in premium ticket size and the digitization of various operations as evidence of revolution in the insurance industry. There has been a growth in ticket size with unit-linked insurance products (Ulips) and rising middle and upper-class income levels. The state-owned LIC, which receives business from both urban and rural regions, is unable to brag of a larger premium per policy earnings.
Similarly, non-life insurers continue to ignore people’s insurance demands and do not market non-traditional products that they desperately need.
The sector boasts of widespread use of technology to increase productivity. The technology is designed to expedite office work and give policyholders easy access.
The prime minister’s introduction of insurance plans for bank account users three years ago demonstrates the tremendous untapped potential that has been in the market for such a long period.
These two events indicate that the landscape is shifting. It’s time to rethink prospective clients and their insurance requirements. In the non-life insurance business, insurers compete fiercely to snag current clients. There is no rivalry for market expansion via a more efficient distribution system. The existing situation will not change since no firm is taking steps to raise insurance product knowledge.
2. Comprehensive cover
Growth may be hastened by taking advantage of the developing digital environment to reach out to new clients and deliver complete coverage quickly.
Companies must improve their goods and services. In the non-life insurance market, firms must cater to all types of risk for a person or a family, in addition to the typical product offers. In today’s world, cyber security and associated rules take precedence over many physical assets. Even the regulator has to issue a new set of rules to oversee the digital sale and purchase of insurance. A highly supportive regulatory environment is essential for the insurance business to develop. In all cases, an atmosphere of growing flexibility must be established, with obvious priority given to the interests of consumers. In life insurance, a fair return with complete coverage and other benefits is required for policyholders.
