Why Digital Insurance Is Growing Rapidly In India

With around 250 million internet users, 100 million facebook users and almost a billion mobile phone users, it is very clear that digitization is growing rapidly in India. Digitization has changed the way we function and it has also created an altogether new marketplace for selling and buying of products. It provides easy access to various forms of information and helps people in decision making.

One sector which has slowly realized the importance of digitization is the insurance sector. The online insurance market in India is growing rapidly and credit goes to effective technology and easy access. It has changed the entire customer demography. The main reason behind the fast growth of the insurance industry is the online presence of various companies, offering their products on the platform and also because of the growth of insurance aggregator websites that have made it easier for the customers to choose from various available options.

Role of Insurance Regulatory and Development Authority
As the growth in the industry has been quite remarkable, the IRDA, which frames guidelines for the insurance sector has had a major role to play in the growth. IRDA had come out with some strict guidelines in 2011 which made it difficult for online insurance web aggregators to show comparisons, ratings, rankings etc. But now the online aggregators, which are registered under IRDA regulations, have the authority to allow comparison services, display of rankings and many other similar services which has resulted in attracting customers towards them.

Growth of Digital Technology Boosts Insurance Market Status
In spite of challenges which exist in the market, the online insurance market is growing by the day. Many projects are under way that will bring enhanced connectivity to rural areas of the country. Numerous government initiatives are also helping the sector in increasing the penetration rate. Insurance companies are trying to capitalize the connectivity within the country. Numerous leading government and private insurance companies have introduced their mobile apps that allow the customer to get the desired information easily and on time. These apps provide detailed information and allow consumers to buy or renew the existing plans simply. All these activities are providing a positive environment for the growth of online insurance market in the India.

The use of digital technology in providing assistance for the growth of the insurance industry is fast changing the way insurance was practiced in the country. Sales agents and online insurance web aggregators are helping customers in buying the desired insurance plans online. Many users do online research and comparison through web aggregators before buying insurance plans.

Now, the insurance companies have also realized that having an online presence can help them in increasing their sales numbers and their business as well. New companies, with the help of this route are growing rapidly as compared to the traditional route.

As per the recent guidelines, the IRDA has issued guidelines regarding issuing of policies in a digital format. At present, there are five registered repositories.

The biggest benefit of having plans and policies in digital format is that a customer does not have to carry hard copies of policy documents so there is less chance of losing documents or the documents getting destroyed in case of an accident.

When it comes to technology infrastructure, a recent survey confirmed that the traditional insurers are in difficult situations. To maintain their position and reputation in the segment, it has become extremely essential for them to start providing digital services to their customers as currently; customers are finding the digital insurance platform more useful and relevant for their desired insurance needs and requirements.