Today in India, the need for health and term insurance has increased more than ever. The cost of treatment is increasing rapidly and lifestyle related diseases have become common. In such a situation, financial security of the family has become very important. Yet a large number of people are still out of insurance coverage. The biggest reason for this is expensive premium and complex policy structure.
The report of the National Insurance Academy shows that only about 5% of the people in the country have life insurance, that is, 95% of the population is still out of its scope. Access to health insurance is slightly better, but that too is limited to only 37% of the people. It is clear that despite the demand, underinsurance remains a big problem. People want to take insurance, but when the premium is not according to their income, the decision is postponed.
Simple plans can pave the way
Experts believe that to make insurance accessible to the common people, it is necessary to simplify the products. EDME Insurance Brokers Ltd. MD Nochiketa Dixit says that plans with low premium and easy terms can become the first step for new customers. When the policy is understood and the rules are clear, trust is built. This trust helps in getting more coverage in future.
Distance increases due to complex policy
According to Chetan Vasudeva associated with Alliance Insurance Brokers, excessive features, add-ons and lengthy conditions make the policy expensive and complicated. Today’s customer wants to know clearly what risk he is paying for. Therefore, plans with limited but necessary coverage are becoming popular.
Increasing impact of digital platforms
The trend of buying insurance online has increased. Comparison is easier on digital platforms, terms are clearer and the claim process is also faster. This has increased transparency and reduced costs.
Customization is necessary for SME sector
Need based policies are more effective for small and medium businesses. With the help of technology, the underwriting and claim process becomes easier, which reduces expenses. Experts believe that low terms, clean coverage and affordable premiums are the only way to take insurance to every home.