Insurers want to have assistance model for buying insurance online

Insurance companies have requested the Insurance Regulatory and Development Authority (IRDA) to have an assistance model in buying insurance online. This model will not only increase web traffic but also improve quality of business.

At present, direct business done through the online channel contributes less than 5% of the total business of the insurance companies.

Now not just term insurance plans, but all types of products are available online. However, all customers are not comfortable buying it online since product structures are difficult to understand. To resolve this problem, insurers want to have an assistance structure.

This model will have assistance services to individuals who require help during purchase of an insurance policy online. Dedicated personnel will be appointed who will take care of all queries arising during an online purchase. This model would be distinct from the call-centre individuals who assist customers in grievance redressal and claims processing.

At present, Online Term Insurance Plans In India  purchased online has a much lesser premium due to the lower distribution costs and absence of any third party in the transaction. Hence, products are custom-made for this segment and are much simpler than offline products. Payments are done online and the policy documents are sent to the policyholder. With digital signature acceptance in insurance policies also being discussed, policy purchase will fully go online.

For small ticket policies with premiums in the range of Rs 5,000-15,000, customers are comfortable paying online. However, in large ticket size policies with a premium of Rs 25,000 and above, individuals are reluctant to pay online. Therefore, an assistance model would be helpful, wherein the customer could be assured of the security features and inscription or in some cases, these persons could be deployed to collect the premium.