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The Scope And Prospects of Online Insurance in India

The Scope And Prospects of Online Insurance in India
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You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Online marketing and services are spreading at a lightning speed to almost all the corners of the world. A developing country like India has also been touched by the online services and now almost everything in India is going online. The limit is not only the online shopping and the social networks. Nearly every service from financial to educational and many more are going online so that you do not have to go out anywhere to fetch a particular service.

Similar to many other services, online insurance in India is also getting famous and is benefitting a number of people. 

Why do you need an online insurance?

Today almost everybody who is starting to earn is taking insurance. There are some possible reasons why people are doing so. One of the most common reasons that people give today is to save tax. Apart from tax saving, the other big reason is of course safety. The main benefit of insurance is to provide support at times of need.

Some agents and companies offer insurance policies at their office. But people prefer to take online insurance today. Why is it so? Today everyone has become so busy that no one has that much time to visit different insurance offices to check the policies and then buy a plan. In this case, online services can be easily accessed from his home or while on transit and at any suitable time, even at midnight. Also, you get an appropriate amount of time to do proper research before buying the policy. Also, the cost of an online policy is less as compared to an offline one since there is no middlemen involved.

The comfort of online insurance process made it a big success in India

Today people are more into comparing things before buying. Even in a case of insurance policy, people like to compare 2-3 companies before settling on one. Comparing becomes hectic when you are confused in between 2-3 brands. To make this easy, there are some comparisons sites that you can make use of. Here you can search for a particular type of insurance and can compare between many brands to get the best deal.

The comparison is based on various parameters like reputation of the company in the market; the services provided by the brand, the benefits and coverage offered by the policy, the price of the policy, returns and many others. After having a look at the various features and companies, you can select the policy that is best suited to you. In fact, this is why the popularity of online insurance has enhanced significantly over the years in India.

Impact of online service in Indian market

Gone are the days when people just researched about the particular insurance company and then contacted their agents to buy the policy. Now the online payment mode is comfortable and safe and you can buy virtually anything online. This feature has boosted the prospects and scope of online insurance in India significantly.

You can make payment through a vast number of choices such as credit or debit cards, mobile wallets like Rupay or Paytm and get the policy in your inbox instantly.

The gateway is also safe and password protected so that your transaction is done successfully and safely. Online insurance also provides a good customer care support, which helps the buyer tackle any tricky situation before or after buying the policy.

Increasing demand for online insurance in India

There was a time when people in the metropolitan cities such as Delhi, Mumbai, Kolkata among others opted for online insurance services. But with rapid growth of internet and increased penetration, online services have also become quite popular in tier 2 towns as well. Now people in those cities are comfortable in taking help of the online insurance to compare, buy and renew different types of insurance policies. 

Future of online insurance in India

With the increase in number of internet users (India has over 400 million internet users; Source BCG Google Report), it has also been noticed that the number of people taking up insurance policies online has also increased. There was a time when people with high salaries believed in getting insurance policies and that too, mainly, life insurance policies. But today an individual who has just joined a job starts buying insurance. 

People are getting more educated, aware and are trying not just to secure their lives but also their homes, properties, vehicles and even their travel trips. Of course, digitalization has made people more knowledgeable about various types of insurance policies, about how they can be beneficial to them. The most important thing is that people today know how to get the right type of insurance and from where. Buying insurance online is now a trend in India. One of the primary reasons behind this change is the services and benefits offered by the companies and the price benefit that one can avail of while buying online. It might be safe to presume that online is the future for the Indian insurance industry .

 

 
Edition: April 2017

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