In a 2014 survey named ‘Digital Natives on Protecting Life: Gauging knowledge, attitude and behaviour’, Nielsen interviewed 1000 effluent and high-income respondents from the four major Indian metros. Of these 84% respondents reported to have searched for insurance online and as many as 76% attempted to buy online, while 20% ended up buying. These are early and encouraging signs for the industry that is gearing up for the digital age.
When it comes to buying insurance online, here are the top eight reasons that are driving the change:
Since you transact online, you save time across every step of the process. Browse, compare, apply and pay anytime and from anywhere.
2. Lower Premiums
Online insurance policies generally quote lower premiums as compared to offline ones. This is because the insurance company saves on distribution channel expenses, infrastructure and other overheads. They gladly pass on the savings to you.
3. Ease of comparing
The beauty of buying insurance online is that you can take time to learn, research, share and compare. You do not need to rush into a purchase; in fact, you can take your time and make a highly informed choice. Browse through various online plans, compare features and review crucial parameters to understand the performance of the plan and the insurance company.
4. It is a do-it-yourself medium
Buying online allows you to experience a high degree of flexibility. You are in control of every aspect of the transaction – from research and short-listing of a product to form filling to making a payment. Moreover, you can take one step and be sure about each choice you make.
5. Lesser paperwork
Most insurance company websites are intuitive and engaging. Once you choose a policy, you need to fill a detailed online form, choose supporting documents and submit (upload) them through an easy and secure user interface. There is no need to create photocopies, seek certificates or courier documents. It is a hassle-free process.
6. Online reviews
Before you buy,you can read online reviews, seek opinions, get suggestions and considervarious unbiased perspectives about the plan and the insurance company you are planning to buy from.
7. Easy access to complete policy details
Most claims are rejected due to incorrect or incomplete details submitted during form filling. Also, there are several instances where the insured is not sure about the nature of the policy and the expected returns. You can download and view all the policy features and clauses with just a few clicks online. You have easy access to all the necessary details to make an informed decision.
8.Ease of Servicing the Policy
Since you do not rely on a particular person or agency, there is no ambiguity about your role and responsibility. Paying premiums or updating/ seeking information is just a few clicks or a phone call away.
Concerns about buying insurance online:
For a business that has traditionally been operated on relationship-based selling, lack of personal interaction during the purchase process can be a deterrent. In addition, a perceived lack of transparency, limited information, unclear instructions and payment safety are the other concerns for buyers online.