Online Insurance Sales on Track to Reach Rs. 15,000 Crore Mark
As per a Boston Consulting Group (BCG) report, this relationship is going to escalate and multiply 20 times in the near future. The report states that online insurance is on the right track to touch the Rs. 15,000 crore mark by 2020.
This trend is predicted to gain momentum owing to the growing Internet access and smartphone penetration. Both Life and Non-life Insurance sectors are set to benefit from this boom. The report suggests that Life Insurance Online Market could be around Rs. 3,500-6,000 crore, whereas the Non-life Insurance Online Market could range between Rs. 11,000-15000 crore.
Currently, the overall Online Insurance Market is estimated to be around Rs. 700 crore. Out of which, Life Insurance holds the major part of the pie with a business of Rs. 300 crore. Motor Insurance holds the second largest chunk with Rs. 250 crore followed by other segments like Health and Travel insurance that warrant for Rs. 150 crore.
Google's Consumer Barometer validates this trend. According to the Barometer, since 2008, search inputs for insurance have seen an upsurge. While Motor Insurance related queries have grown by 6 times, Health and Life Insurance have grown by 4.5 times.