Insurance in India is largely sold, not bought. This raises concerns about mis-selling and the need for better consumer education. The “India InsurTech Blueprint” by Blume Ventures offers crucial insights into the sales of insurance in India:
- Offline Dominance: The industry remains heavily reliant on #intermediaries and offline channels.
- Channel Breakdown: Across channels, less than 2% of premiums are sold online
- life insurance (Individual): 53% via individual agents
- Life Insurance (Group): 85% through brokers
- health Insurance: 30% each from individual #agents and #brokers
- general Insurance: More diverse, with 36% direct, 25% brokers, 20% individual agents
- Consumer Behaviour: Indian customers still prefer offline interactions for complex insurance products, valuing face-to-face query resolution.
- Digitization Opportunity: While new sales are predominantly offline, 35% of renewal premiums are paid online. This digital divide between acquisition and retention presents a unique opportunity.
The future of insurance in India lies in striking the right balance between personal touch and digital efficiency. The industry needs to accelerate its digital transformation while maintaining consumer trust.
