Digital in India will grow its influence on the Insurance sector in the coming years. According to a report by Boston Consulting Group (BCG), a management consulting firm and Google India, the growing popularity of smartphones and Internet is set to have a huge impact on Insurance sector in India.
The report titled as [email protected] by 2020 states that three in every four insurance policies sold by 2020 would be influenced by digital channels either during the pre-purchase stage, purchase or renewal stages.
The report also highlights that not only will insurance sales from online channels grow 20x from today by 2020, but overall Internet influenced sales would be Rs. 300-400K crore.
With time traditional business ways would be challenged by the emergence of mobile internet, analytics and social platforms. This would also mean that in this digital age, old ways of selling insurance will becoming less sustainable in the near future.
Alpesh Shah, a BCG Senior Partner and Director, also the author of the report shared that, “Digital adoption by the Insurance industry could result in potential savings of 15-20 percent of total costs in the case of life insurance and 20-30 percent in the case of non-life, thereby showing the path towards profitability for the industry.”
It is no more a secret that the country is inching closer towards a digital revolution in the next 5-6 years. While the population on web (less than 13%) remains a worry but availability of content in local language can boost the growth of Internet in the country. Even Google India’s MD Rajan Anandan recently predicted that content consumption will grow on various platforms with vernacular content raising the demand.
Besides mobile which is making the difference in the country is witnessing a rapid growth. Earlier in the month, Internet and Mobile Association of India (IAMAI) and IMRB stated that the number of online user visits to mobile segment had gone up from 6.31 million in January 2013 to 20.70 million in January 2014, registering a Year on Year (YoY) growth of 228 percent.
Subsequently mobile activities in the country have spiked up which should be welcome news to the Insurance industry.
Image credit: sweetdigital.co