The Policy Bazaar Show is a brand- new series that decodes the grey areas of purchasing insurance. Through the 26-episode series, the show will highlight and discuss a magnitude of topics essential to everyone trying to secure their future. From purchasing the right cover, to switching policies while shifting jobs, to ensuring a comprehensive child cover, insurance experts deliberate, simplify and shine light on the complexities of purchasing insurance in India.
In this week’s episode, our eminent anchor Vivek Law analyses the recent trends in the consumption of term insurance policies in India with V Viswanand , Deputy Managing Director, Max Life Insurance Co. Ltd. They also talk about the journey of changing perceptions about insurance among the population.
With the increase in awareness about the importance of insurance in India, the consumer base for term plans have grown manifold in the last 20 years. Even in the past decade, there has been a 10-15% increase in the sale of term plans. The most surprising element of the consumer base is, however, the age group. Millennials, who belong to the age of 25-40 years have been the most active customers in the last few years. Their share of the term plans is twice compared to the other generations. The reasons for the greater demand of insurance among millennials is the increase in awareness, government’s financial inclusion initiatives and the most important factor, that is digitization. There is no longer a need to contact agents for information regarding the policies and insurance. Today, most individuals make their financial decisions, based on the online researches. With digitization, information has become easily accessible, as the consumers can also compare various term variants. The digital footprints of customers also help the insurance companies to provide customized options based on the individual’s needs and demands.
The millennials today are causing a huge shift in the demographics of the country. They are becoming the most important part of the working age group. A Google research calls out millennials as curious, demanding and impatient. 91% of the millennials make their own financial decisions which is based on browsing and research. It, however, becomes very important to choose one’s first term cover wisely. The things to keep in mind are the riders and top-ups available with the covers, the claim-settlement rate of the company and if the cover is entirely suitable to the individual’s needs.
Watch to know more about the present and future of the insurance sector of India.