Comments on: Innovate, Converge and Penetrate – Indian Insurance 2020

By: Rahul

Rahul — Wed, 25 Jan 2012 07:35:13 +0000

From the perspective of the customer-Normally 95-97% people doinot understand fully the insurance products in market. Lot of decisions whether for a corporate insurance plan for the plant or an individual life insurance goes with numbers wherein IRR & PV values are shown on time chart scale & risk is broadly and very largely highlighted which the plan covers.
Its because of the conservative nature that mostly timid personailty people go for more insurance due to emotional decision making.

In reality insurance business works on probabilities. Getting the right equation is very difficult but the policy does more than benefits the insurance companies.
The chance of insurance claims in 100 human lives is mere 1.5 to 2% i.e. 2 people claiming insurance. Avg policy value sold in 4% households in metro cities & tier II town is Rs.1 Lac only. With this its hardly few lakhs claimed while few crores of desopits available with the Insurance product managers without interest burden.

Now thats smart earning. All said the insurance salesperson is a real talent in this country as its very difficult to sell retail life insurance and hit your numbers every week after week.

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Wed, 03 Nov 2010 07:33:01 +0000

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By: nivedita

nivedita — Thu, 21 Jan 2010 18:32:12 +0000

I agree with Rekha here, the whole purpose of convergence of financial instrument/product is to provide customer convenience (apart from their own cross marketing strategy). The concept of bundling/convergence is very successful and proven in Consumer Goods sector.

Also now the financial market in India has opened up so many options. In the future customers with good relationship with banks might as very only opt for a one shop stop to save time and confusion.

By: Pratibha

Pratibha — Tue, 19 Jan 2010 11:42:29 +0000

Thanks Rekha – yes, I agree with you that companies will innovate and competition will ensure competitiveness. My only concern is that in the rush to get to the vision, real customer centricity “may” be compromised. I hope for the industry’s sake you are right and my apprehensions are dis-proved.

By: Rekha

Rekha — Thu, 14 Jan 2010 10:01:02 +0000

The idea is valid. The discerning customers will always look for best deal, but there would always be people who would look for such bundled services, and ready to pay a premium for the same. At the same time, companies will find and develop ways to provide convergence at competitive rates. It thus seems that the convergence is there to come and stay!