Product Manager @ Accenture | Insurtech & Insurance Specialist | Exploring Tech, AI, Economy & Society Through a Curious Lens | Ex-Wipro, Infosys, Allianz | Fitness Enthusiast | Biker
Insurance landscape in India is still dominated by offline channels, with less than 2% of total premiums sold digitally. This makes insurance a heavily intermediated, push-driven product, where agents and brokers play a pivotal role. But is this really sustainable for the future? Let’s look at the data: 53% of individual life insurance policies are sold by agents. In group life insurance, 85% is distributed through corporate agents. Even in health and general insurance, intermediaries take the lion’s share. This raises critical questions: Are customers being truly empowered, or are they merely following the advice of intermediaries who are incentivized by commissions? Is this model serving the best interests of policyholders, or is it skewed towards meeting sales targets? Harsh reality is that insurance in India is often mis-sold. When agents, brokers & banks are focused on meeting their own financial goals, it automatically leads to customers being sold products that don’t match their actual needs or future goals. The complexity of insurance products also plays into this, as most consumers don’t fully understand what they’re buying, resulting in under-insurance or purchasing the wrong policy altogether. The high reliance on face-to-face interactions only adds to this issue. So, why haven’t we seen a digital breakthrough in insurance? With increasing internet penetration and smartphone usage, why are 98% of policies still sold through traditional, offline channels? Is it a lack of trust in digital platforms? Or is it because insurance, as a financial product, is still seen as too complex to be transacted online? The good news is that change is slowly happening. Interestingly, 35% of renewal premiums are now paid online, showing that consumers are becoming comfortable with digital transactions in insurance. But that raises another question: If renewals can be done online, why not the entire insurance journey—from discovery to claims? Could we envision a future where insurance is completely customer-driven, simple to understand, and just a click away? In my opinion opportunity for InsurTech to disrupt this space is massive. By leveraging AI, automation, and better customer education, industry can shift from a push to a pull model, where consumers actively seek the right insurance products based on their needs. The key lies in simplifying products and creating trust in digital channels. But the final question is: Will the industry embrace this change fast enough? Reference datasheet attached ⬇ Note : Incase you want to know more about Indian insurance market dynamics, I have discussed these points with some more in detail in my recent podcast (Link in comment section). #Insurance #InsurTech #DigitalTransformation #CustomerExperience #IndiaInsurance #FinancialServices #Fintech #LinkedIn