The total online insurance market size is at ` 1000 crore in the year 2015, as per reports from the Boston Consulting Group (BCG). While the life insurance segment covers ` 350-400 crore, motor insurance is worth `300-350 crore and health and travel insurance amounts to `150-200 crore.
Gone are the days of an insurance agent going door-to-door to sell policies. In the last six to seven years, the online market for insurance has soared six to seven times. The Prime Minister Mr. Narendra Modi’s Digital India Week initiative has further helped in the growth.
According to Mr. Mahavir Chopra, Head (Health, Accident and Life Insurance) of Coverfox.com, a policy comparison site, the difference in premium between online and offline insurance products is about 35-40%. It is about 15-20% for auto insurance in specific.
The aspects responsible for this tremendous increase can be primarily attributed to cost saving, foolproof, and convenient method of purchasing an insurance policy. Social media has paved a new way for the interaction between the customers and insurance service providers, which has helped in forging trust between them.
In a country with 24.3 crore Internet users, the insurance companies envision a remarkable rise in the demand for online insurance in the years to come.