A mammoth digital revolution is sweeping across our life. It has dramatically changed the way we interact and transact with the external world. The corona virus pandemic, in particular, has acted as a catalyst and accelerated the process of adoption of a digital life. In that sense, analysing and buying insurance products is no different. Just a few years ago insurance was more of a personal affair. For most of us, one of our friends or relatives who was also an insurance agent would have come to our house one evening and over a cup of tea would have explained the intricacies and benefits of buying an insurance policy. There would have been no comparison, very few questions asked, and you would have got an insurance policy in your name a few days later.
The growth of e-commerce and the emergence of insurance web aggregators are factors that have changed this dramatically. Digital technology is a new force that is driving massive changes in the insurance sector. According to CRISIL Research, insurers are moving towards adopting a digital services' model, enabling customers to complete the entire insurance processes online right from discovery of information to advice and purchase either on their own or with the help of a service provider.
Insurers are now harnessing digital technology to scale their business model and provide a hassle-free experience to their customers. This is reflected in the growth in the business of insurance companies from various channels. The table below shows compounded annual growth rate (CAGR) of the different channels that sell insurance to individuals for the five-year ending FY21. It clearly shows that for most of the insurance companies direct business' has grown at a faster rate than any other channels - mainly driven by rise in online purchases. What has led to such growth is the increase in the use of smart phones and internet penetration.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
How To Invest In An Ageing Bull Market
Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.
Should You Entrust All Your Money To A Single AMC?
If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario
Wild Swings Engulf Global Equities
U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.
U.S. Elections and China's Economy Hamper Commodities
Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.
Wealth Building For Retirement Through Mutual Funds
Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.
Mastering Investment with Information Ratio
Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool
Plan To Be Financially Independent
Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.
❝Technology is the new game-changer"
With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company
What If Donald Trumps?
The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store
Sectoral Gains Make A Mark
Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures
