As customers increasingly turn to insurance policies as the first option while diversifying their investment portfolio, the industry is also evolving in line with growing customer requirements. Many more options now exist for customers who are looking for more options to increase their coverage and at a lower cost. Not only do customers want a higher sum assured for benefiting their family and dependents after their death, but they also want more add-ons than ever, to cover all eventualities.
For instance, the iSelect Star Term Plan, offered by Canara HSBC Oriental Bank of Commerce, lets customers opt for multiple riders including Accidental Total and Permanent Disability Benefit, Child Support Benefits and Accidental Death Benefits. Through this, customers can guarantee their family’s continued well-being even if they are no longer around.
Through this expansion, the insurance industry has seen several developments happen over the last few years. Several key trends in the industry set to emerge in 2020 have been listed below, read on to learn what they are.
1.Increasing focus on customer-centric products and services:
2020 is seeing increasing focus on customer needs and even the insurance industry is endeavouring to follow that trend by making their products and services more customer-friendly. The lengthy paperwork previously associated with availing a iSelect Star Term Plan is increasingly being done away with, as insurers work towards making the processes much smoother for the customer. Products are also being increasingly customised, especially in accordance with customer requirements. Customers now increasingly demand a flexible experience, with the capability to interact with their insurance provider whenever the need arises, while also being able to do so from the ease and comfort of their own homes. They can also increasingly avail services at their leisure, and align their requirements from a product at their own leisure.
2.Technology being increasingly integrated with products and services:
Digitalisation is taking the world by storm and the insurance industry is not getting left behind. Increasing digitisation of all products and services now lets customers easily access information on different plans online, browse and analyse the pros and cons between different products and then select their desired plan which ties in with their requirements. Additionally, they can opt to get their own desired add-ons as well, with their iSelect Star Term Plan, all from the comfort of their own home. As technology gets increasingly integrated into the insurance industry, the feedback mechanisms will be in action sooner - letting customers enjoy a transparent experience. With technology, insurers will also be able to reach out potential policyholders living in remote parts of the country. Increasing penetration of the insurance industry into the country will ensure that more people remain protected, regardless of where they are located.
3.Business models will change:
Previously insurers sold just different types of insurance products. Over time, this has increased to insurance providers providing different types of investment products. In 2020, these business models are set to change further. Aggregators of different insurance products are set to see increased popularity, with customers enjoying the increased convenience in comparing different products and the benefits they offer. More business models will shift towards acting as aggregators, in order to help customers weigh their options more carefully and in giving them all their options at the same place, thereby facilitating an easier exchange for the customer.
With increasing customer requirements, products are also going to be increasingly diversified now. Insurers will be able to offer customers a core product with several add-ons that complement the main product. As disposable incomes continue to rise in India, customers are increasingly more interested in insuring their lives and families while also ensuring their dependents will be well looked after even if they are no longer around. With one single policy, policyholders can now insure themselves against a range of illnesses, and ensure coverage regardless of the cause of death. Insurance also acts as an excellent investment instrument, thereby letting customers diversify their investment portfolio while also gaining coverage in the process and ensuring their dependents will be well cared for, even when they are themselves no longer around. The iSelect Star Term Plan, offered by Canara HSBC Oriental Bank of Commerce Life Insurance, is an excellent example of how a term insurance policy can inculcate add-ons that offer additional benefits to the customer apart from the coverage and a huge sum assured.
The insurance industry, like all other businesses, is likely to see some new trends in 2020. All of these indicate that the market will expand and customers will have increased choices of term insurance plans to choose from.