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Online Channel to Take Over, 75% of Insurance Sales to Happen Online by 2020: BCG-Google Report

Insurance sales would grow (through online channels) 20 per cent from today by 2020, but overall Internet influenced sales would be Rs 3-4 trillion

As reported by Boston Consulting Group and Google India, by 2020 close to three-fourths of insurance policies will be driven by digital channels.

According to some calculated estimates, digital adoption could result in future savings of 15-20 per cent of total costs in the case of life insurance and 20-30 per cent in the case of non-life, thereby predicting profitability for the industry.

While online purchases contribute to a small portion of insurance activity in the country presently, the overall influence of the Internet on insurance product purchase is already six times and growing very fast.

As insurers look out for better and new ways to grow profitably, they have a great opportunity to consider and gain from the digital platform, which also offers solutions to many key issues that affect the offline world today.

It's not only the insurance sales that would grow (through online channels) 20 per cent from today by 2020, but overall Internet influenced sales would be Rs 3-4 trillion (Rs 3-4 lakh crore), as per the report.

The online space forms a whole new market that reaches people all across the globe.

According to some studies, two out of every third user looking for a financial product ended up changing their mind about the brand or the product during their pre-purchase period.

The mediocrity of digital assets has given birth to online insurance aggregators that have witnessed four times growth in the value of life insurance premiums and a seven times growth in the value of health insurance.

Motor insurance sales that were comparatively less in 2011-12 also rose four times within the last year itself.

Written By: PolicyBazaar - Updated: 30 December 2020
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