Frequently Asked Questions
Benefits of Choosing an Online Term Insurance
In the times gone by, innovative marketing strategies to sell insurance to customers
were either through brokers or through call centres. As the market entered the “Era
of the Consumer,” connecting and networking underwent a major shift. The World Wide
Web became a game changer. And thus came about a marketing outlook shift, where
instruments like insurance went from “being sold to each customer” to “being bought
by numerous customers,” via the internet. Did you know that from 2012 to 2014, the
online term insurance policy purchase in India grew by over 200%? Even after a surge
in the use of the internet, online sales constitute only 2% of the total sales.
Nonetheless, the purchase of online insurance in India is expected to follow the
growth trajectory of the foreign markets soon. For instance, in Europe and the UK,
internet sales of insurance started with an aggregation model. Currently, almost
70% of motor insurance in such countries is bought online.
Key Factors that makes the Online Term Insurance Option FeasibleThe online channel offers efficient, fast, transparent and low-cost services to the consumer. Traditionally, companies need to pay commissions to distributors like brokers, agents and other banks. Through the online term insurance model, they can avoid such hefty commissions. The savings made due to this is then transferred to the customer in the form of reduced premium rates. Here are a few other advantages of the virtual medium.
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