BFSI Day Takeaway report by YES SECURITIES on the Insurance sector
YES SECURITIES Lead Analyst, Mr. Prayesh Jain spoke to Mr. Naval Goel, Founder and CEO, PolicyX.com.
- Online business will continue to thrive on the assisted model as complexity of products will continue to increase
- Expect share of savings products in overall premium collection for the industry to decline significantly over the medium term
- While number of policies may indicate high penetration, in terms of sum assured, under penetration is very high
- Motor TP should be de‐tariffed to make the business profitable for companies and remunerative for agents/brokers
- Traditional companies are competing with new gen companies in terms of technology adoption
- Lot of changes in customer behavior with (1) significant pull seen across health and term life products and (2) Increased Customer Awareness in terms of product availability and their benefits.
- The change is driven by the following factors (1) Knowledgeable digital customers (2) Launch of Customer friendly products (3) Boost in customer confidence with better Claim experiences (4) Enhanced Customer's purchase and after sales experience.
- These factors shall contribute for faster pace of growth for the industry as India still has low insurance penetration.