According to a recent Life Insurance Council study, 91 percent of people polled are aware of what an insurance policy is, yet just 60 percent possess one.

S.N. Bhattacharya

Life insurance plans have been a feature of Indian homes for decades, with families choosing for them to protect their family’ future for generations. However, according to a Life Insurance Council poll, although 91 percent of individuals are aware of the necessity for a life insurance policy, just 60 percent actually possess one.

High premiums, high tax rates, and reduced adoption of technology, among other variables, are to blame for such a low inclined graph. The COVID-19 pandemic, however, radically transformed the nature of this industry in 2020, causing not only a tremendous digital revolution and technology-adoption among companies and customers, but also forcing every person to rethink fundamentals such as life insurance.

Another crucial factor in people’s lives was their capacity to spend money. Consumers were compelled to reconsider their financial preparation as a result of the COVID-19 epidemic. As a result, although non-discretionary spending has decreased, saving for a family’s financial future has become a primary emphasis area throughout the crisis. Financial immunity included holding a life insurance policy, which was not previously emphasized.

Let’s have a look at the most important things to understand when purchasing a life insurance policy:

Insurer track record

Most of the time, buyers overlook this critical factor while making their decision. Some frequent problems that reveal an insurance company’s lack of track record include, among other things, delayed claim processing and poor customer service. When comparing different insurance companies and their plans, it is critical to do extensive research on the insurer’s reputation. The track record of every insurance business is accessible online, just like any other investment, and it is the duty of the customers to ensure that the firm they choose has a clean record with no complaints about claims, etc.

The company’s strength

Understanding the fundamental position of any insurance business is critical to ensuring that you do not make a poor decision.

According to a Life Insurance Council report, one of the main impediments to consumers investing in insurance is distrust and unscrupulous sales methods. Various websites online provide information about the company’s profile and position. Making an educated decision by reading internet reviews and soliciting comments from friends and family may also be beneficial.

The company’s service capabilities

According to a Global Journals research, service quality is classified into two categories: technical quality (what is provided) and functional quality (how is it given).

The service quality, both technical and functional, which considers how compact the insurance is and how well it meets one’s demands, also considers how easy the process of purchasing insurance is in the current day.

Both of the insurance provider’s services impact how satisfied a client is with the procedure, resulting in high statistics. Customer retention is just as crucial as customer acquisition, if not more so.

Explaining crucial stages in the claim process, offering the correct insurance for the customer, providing as much information as possible to help the consumer, and so on are all examples of service competence. As a consumer, you must examine these characteristics in order to make an educated and fair choice.

Is your insurance business using technology?

Previously, technology was almost non-existent in the life insurance market, with insurance policies written on paper, payments made solely via in-person kiosks, and agents sitting face-to-face with customers to explain the policy.

In today’s world, insurance technology has grown in popularity and is quickly becoming an essential component of the sector. Artificial intelligence (AI) delivers the much-needed customization that contemporary purchasers want. Consumers must be informed of the numerous technologies on the market and choose the firm that is best suited to provide excellent customer service at all hours.

READ ALSO; New business premiums of life insurance companies jump 37% in March

Consumer centricity

An insurance firm recognizes that a client wants coverage more out of need than pleasure. This must be the cornerstone for a strong and long-term insurer-customer relationship.

As a result, it is critical that the consumer is now able to distinguish between his or her true requirements and the numerous insurance company offers. This implies that a buyer must choose an insurance coverage that best matches his or her needs.

As a result, improved communication with customers is required to help them feel confident in their insurance purchase.

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