Indian consumers increasingly buy insurance digitally
A survey by reinsurer Swiss Re highlighted an increasing trend among Indian consumers to buy insurance digitally, especially through payment apps
Insurers' websites and apps have also become a preferred mode of buying cover for Indian consumers. However, traditional channels of distribution such as agents, brokers, and insurance aggregators are still the primary channels for insurance-related information searches in India.
Among digital payment apps and e-commerce websites, Indian consumers ranked GooglePay, followed by PayTM, and Amazon at the top of their preference list as potential platforms to buy insurance from digitally. Walmart owned e-commerce giant Flipkart, and Walmart’s payment app PhonePe are also among the preferred apps for Indian consumers from where they would buy insurance digitally.
Easier to file claims and make applications
The reason cited by respondents is the ease of filing claims and making applications. The survey tested acceptance of six digital life and health insurance products tailored to fit a mobile screen, with small ticket sizes and a few health questions.
“The results found consumers very open to products designed for digital platforms. More than 70 per cent expressed strong intent to purchase all six products we tested. There was no meaningful difference by either gender or income, but younger consumers were in most cases more open than those aged 50 and above. Frequent app users also tended to like the concepts more”, survey results showed.
Using the opportunity to access new consumers
Since Indian consumers are showing willingness to buy insurance products through digital platforms, insurers can leverage this opportunity to access new risk pools and consumers.
“We believe full-scale disruption of traditional insurance distribution channels is unlikely since there always will be a proportion of consumers that favour them. Rather, an omni-channel approach with mix of digital and physical touchpoints will best complement each other through cross and up-selling opportunities”, Swiss Re said in its survey report.
Estelle Lebar, Global Offering Leader, Travel Insurance and Assistance at Shift Technology, explored how travel insurers are asserting themselves in the new digital marketplace and the benefits that can be reaped for providers and customers alike.