Keeping in mind the needs of the Internet-savvy generation, many insurance companies are collaborating with technology firms to make online transactions hassle-free. Avoiding tedious data entries at the time of purchase and simplifying the products attract more online customers.
Though online sales currently account for just 4-5 percent of the gross written premium of the industry, the potential for growth is huge in future. According to a study done by ICICI Lombard General Insurance and Google India, the Internet will be a key player in increasing the insurance sales from `300,000 crore to `400,000 crore by 2020.
It is usually observed that customers drop out of a purchase due to time-consuming processes such as filling personal details while buying any product. Therefore, integrating with agencies like Credit Information Bureau is important because it not only provides basic data but also information regarding customer's credit behavior.
The data entry can be further simplified in case of motor insurances where the companies just have to check with the motor registration department for customer and vehicle information. For purchasing health policies, the electronic medical records can come handy in near future. Another level where online sales can be made easier is at the transaction level. Insurance companies can store basic data, similar to e-commerce websites. During the purchase, customers can re-use it with adequate authentication.