Pune: With the Insurance Regulatory and Development Authority (IRDAI) making it mandatory for all employers, to provide medical insurance to their employees, post coronavirus lockdown. There has been increased awareness of insurance among people. Experts from the insurance industry claim that this increased awareness will lead to increased penetration of insurance, and also the growth of the industry.
Experts claim they are receiving a large number of queries about health insurance and other insurance schemes following the COVID-19 pandemic.
Looking for security
Speaking about the growth opportunities in the sector, Max Life Insurance Director and Chief Marketing Officer, Aalok Bhan expressed that the Indian insurance industry has demonstrated effective response to COVID-19 on multiple fronts such as new policy issuance, claims settlement and contactless policy servicing.
"During uncertain times, people like to protect the financial future of their loved ones and have certainty around their saving options. This is likely to result in improved awareness of life insurance as a risk cover, making actual and potential customers realise the need for protection policy and that of guaranteed savings options. Therefore, increasing the overall demand and penetration of life insurance in the country," Bhan explained.
"This will lead to a significant change in the way people see Life Insurance, making them accept it as a necessity to secure their future," added Bhan.
Speaking about the growth expectations, Bhan explained that COVID-19 is likely to provide impetus to demand for protection products that can financially safeguard customers during adverse times and endowment policies that offer guaranteed returns.
"Based on past regional experiences, it has been observed that such pandemics provide a push to the protection and guaranteed products, and hence their demands are likely to increase.
"At Max Life Insurance too, we quickly initiated online training for our sellers to enable digital sales across distribution channels, as an outcome of which a large number of policies were issued in last week of March 2020 (since the announcement of lockdown)," added Bhan.
Sharing his views on the growth perspective of the industry, Future Generali India Insurance Chief Operating Officer Shreeraj Deshpande said, "health insurance would be a major focus area for the customers as well as insurers post-COVID situation."
"We could see newer and finer product innovations and constructs being introduced in the sector. In products such as health insurance, we will see a higher growth rate than normal," added Deshpande.