Working of life insurance companies
Life Insurance Companies must work on Leveraging Advanced Tech Stacks Like AI/Ml and Customer Segment Analytics to Derive Actionable Insights from Customer Behavior to Serve a Better-Suited, Easy to Understand Product Linenew Delhi: The level (CAGR) is 11%, in terms of total premiums and 17% in terms of new business premiums, during 2017-22, according to a report by Benori Knowledge. Global providers of custom research and analytical solutions estimate that industry will grow in CAGR 9% to 2027.
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Benori’s knowledge also found that the level of life insurance penetration in India rose to 3.2% in December 2021 from 2.8% in December 2019, almost equivalent to a global average of 3.3%. In the penetration of 3.2%, India ranks 10th in global global life insurance. Markets and in front of China (2.4%) and Britain (3%).
This is expected to increase in the coming years due to various factors, which include changes in consumer perceptions and realization of financial security, easing regulations regarding product approval and distribution, adjustments in products, balanced channels, and digitalization efforts at the company level.
Pandemic Covid-19 instability highlights
the need for consumers to invest in products that will increase financial security, one of which is life insurance,” Benori Knowledge in this report. To better understand consumer preferences to life insurance, Benori conducted by Benori a poll to find that 70% of respondents claim financial safety for families as their main motivators to buy life insurance.
About 91% of respondents said their perception of life insurnce had changed, from being seen as an investment to protection. Furthermore, 55% said that they bought their policies through insurance agents, while 23% bought them online, including bank portals, web aggregators, and direct purchases through websites.
While the poll shows the importance of agents
The insurnce agency takes a second place among the distribution channels. Bancassansifi is the main way for consumers to find and buy life insurance, forming 55% of distribution shares in 2022. The prevalence of the Bancass Insurnce channel is associated with consumer trust and pre -existing relationships with banking institutions, along with in -depth knowledge of banks about their customers’ wealth, allows them to provide products that are in harmony with their customer needs