Selling of life insurance has come of age in India. The concept of insurance as a means to create wealth has probably been the most remarkable development in recent times. Clients have accepted it as an investment tool, not just a savings (mostly tax) instrument.
The cost of selling life insurance has always been a concern. The sales superviser and agent model is one of the oldest and most expensive. Insurance companies have experimented with other channels, particularly direct agency and carrier agents, but without success. Following the opening up of the sector in 2000, the industry tried new avenues, such as bancassurance and telemarketing. The success of these options varied, depending on the amount of acquisition, cost involved and time spent to ensure the desired reach.
This search for cost-effective channels led to innovations, such as selling insurance at malls (mallassurance). It was first launched in 2008. The model presently enables the sale of small premium, low sum insured life and general insurance products. These over-the-counter products involve minimal paperwork and customers are issued receipts instantly. In the future, it will be expanded to make malls an insurance destination. The customer would be able to buy policies and get related services, such as alterations in cover and claim assessment, at the mall.
Another innovation in selling is technology-driven. With technological growth, customers will soon demand online insurance solutions. Companies are now offering the option of planning insurance needs on the Net and choosing purely online products that are competitively priced. This is a cost-effective, highvalue offering at the click of a button and in a secure environment. Trends indicate that this will soon become a mainline channel.
Deepak Sood MD & CEO, Future Generali India
