Term Plan - Insurance Industry players go online Reluctantly

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Term Plan
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Insurance Industry players go online Reluctantly
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• From the year 2000 onwards, the Indian insurance
  industry saw a number of private players entering
  through the gates thrown open by the government.
  Public sector player LIC had already gained an
  edge by being a pioneer in the life insurance
  space.
• With an army of agents, LIC was way ahead of
  these latecomers and found itself settled
  comfortably.
• It was evident that LIC relied heavily on its
  strong agent base. The latecomers, in their
  struggle to make a mark in the newly opened
  insurance market, followed suit. It was a
  herculean task for these private players to ape
  the insurance giant and more than a decade later,
  they still find themselves striving to gain
  substantial market share.
• Getting exceptionally good agents on board,
  training them, retaining existing agents has been
  a constant struggle faced by the industry as a
  whole. The industry also explored other
  distribution channels like brokers, corporate
  agents and bancassurance but is still constantly
  being haunted by profitability issues.

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• PRODUCT SIMPLIFICATION AND DESIGNFor starters,
  companies must focus on designing simple and
  easy-to-understand products. Some policies that
  exist in the markets today are so complex that
  even a fairly financially literate person would
  not be able to fully understand it. For some
  strange reason, instead of working on designing
  simpler products, the industry has and continues
  to depend on intermediaries to sell their
  complicated products. This activity is
  self-defeating and extremely expensive.
• The innovations, if any at all, are trips to
  Paris instead of Colombo or Goa, for the
  top-performing intermediary. Wait for a couple of
  years and we could see incentives like a trip on
  Richard Bransons space flight.
• A century ago someone said that Insurance is
  Sold and not Bought. It is a Push Product
  and not a Pull Product. Design a complicated
  and opaque product and make it available only
  through limited expensive channels and yes, it
  will always be a Push Product.
• So what products do we need Very Simple, Easy
  to Understand, Easy to Explain  Easy to Buy.
• Coming to the Easy to Buy part going by
  industry reports, an online term policy is now
  sold once every 8 minutes. And consumers are now
  getting covers of a crore rupees and more
  something unthinkable a few years ago.
• The process and the interface should be designed
  in such a way that Term Plan becomes easy to
  understand and to buy. The user interface should
  be customer-friendly and the payment process
  should be smooth in order to entice customers to
  transact online.

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• It should only take a few minutes for potential
  buyers to sail through the entire process leading
  to final sales.
• The online platform can be a very powerful tool
  as it is now being increasingly embraced by a
  large section of society and is not only
  restricted to the young. It might just be the
  solution to the very expensive alternatives that
  are being tried currently.
• All it takes is a smart, aggressive player who
  turns the tables to make it a success which
  seems to the norm in most industries these days.
  I am way too skeptical to buy a product from a
  person who knows less about it than me and would
  rather make my own decision. For me, the days of
  push-marketing are over.
• Source http//blogs.reuters.com/india-expertzone
  /2011/11/23/insurance-industry-players-go-online-r
  eluctantly/

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