Enabling Digital Transformation in Insurance Sector: The Policybazaar Show

Term insurance acts as umbrella protection for any individual. The factors that one needs to keep in mind while deciding for a cover is the age and income of the individual. There is a constant change in people’s income levels and the liabilities vary among people depending on many factors. According to a thumb rule, an individual, who is lesser than 40 years of age, needs to buy a cover that is ideally 15-20 times of the income. 

Owing to the recent pandemic, the traffic for insurance sales has moved up by an unprecedented 30%. People who had been procrastinating about insurance choices have been prioritizing health insurance packages in the last few months. The transition of the insurance sector towards digitization has made all the insurance-related processes seamless. And, in many cases, it has reduced the steps involved in the insurance buying or claims process.

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Most companies have gone digital during the corona outbreak. Digitization has simply made the claim settlement process easy and customer friendly, in lieu of the IRDAI guidelines that ask the insurance sector to have a more customer-centric approach. A grace period of 30 days is being provided to customers for their pending premium payments.

The process of buying insurance online has been simplified:

•  Customer applies for life insurance online.
•  Credit history with bureau is taken into consideration.
•  The income of the policy buyer is considered.
•  In case of a medical condition, telephonic or video consultation can be done with the doctor.
•  Post consultation, life insurance policy of up to Rs 2 crore can be issued.

THE MYTH BUSTER

There is a delay in the issuance of policies if there is no physical medical test done

Today, an insurance policy can be bought without said medical tests. However, a thorough check is done to assess the risk factors involved. A consumer with low risk is more eligible for the insurance.