Earlier this year, the Insurance Regulatory and Development Authority of India (IRDAI) revealed a fresh blueprint to insure a large portion of the population. ‘Insurance for All’ by 2047 is a comprehensive mission that will enable every citizen to have appropriate life, health, and property insurance coverage. In a bid to attain this mission, several efforts are being made to help create a conducive environment that provides wider choice, accessibility, and affordability to the people. At the forefront of embracing this mission, Policy Ensure is making significant strides to make insurance available for everyone while comprehending the challenges and offering solutions to support the mission.
Comprehending the current market and its challenges
The insurance industry in India has been growing significantly over the past few years and is expected to reach $280 billion by 2025 with a CAGR of 12%-15% according to International Trade Administration (ITA). The data states that the industry is looking forward to enhancing market penetration. However, as 2023 concludes, there is a dire need to reflect on the low rates of penetration. Policy Ensure has comprehended the challenges, which are turning out to be a hurdle for the industry’s growth.
One significant obstacle is the complex nature of the policies. A myriad of potential buyers are not well-versed in technical jargon, which leads to confusion and reluctance when purchasing insurance. Another concern is the closing of offices in small cities, which is considered a cost-effective solution but is having a significant impact on penetration. Moreover, the industry has been emphasising a tech-only approach, which is not sufficient as it does not facilitate the personalisation of products according to the buyer’s needs.
In a bid to embrace IRDAI’s 2047 mission, these challenges must be addressed efficiently. In this context, Policy Ensure, with its wide network of point-of-sale personnel and a digital model, has been providing seamless solutions that are bridging the insurance gap in the country.
Policy Ensure: Delivering seamless insurance brokerage services
The industry’s problems must be solved comprehensively, which may involve adopting more basic, parametric products, moving towards clear, intelligible regulations, and prioritising in-person engagement and physical presence to increase penetration. Policy Ensure creates a “PHYGITAL INSURANCE DISTRIBUTION NETWORK” to address the issue that Tier 2 and Tier 3 cities have obtaining moral insurance products. By guaranteeing that everyone is covered, Policy Ensure is revolutionising the insurance industry.
With 31 operational sites, an ARR of more than 100 crore, and a physical presence in more than 5000 PIN codes across 15 Indian states, Policy Ensure currently boasts over 2LAC+ customers. It also seeks to reach 250+ distribution locations in towns with a population of over 2.5 lakh people nationwide, which will enable it to reach small towns in Tier 2 and Tier 3 cities in India. Millions of people will be impacted by it as insurance protects their health and possessions, thereby advancing the goals of IRDAI.
All things considered
IRDAI’s primary goal is to fortify the three cornerstones of the insurance industry: policyholders, insurers, and distributors. By proactively adjusting its framework to the dynamics of the market, it is promoting competition, innovation, and distribution efficiency. Policy Ensure, with its extensive PoSP network and PHYGITAL paradigm, is embracing this idea. Furthermore, it has been emphasising on a thorough evaluation of product structures and distribution channels to address the industry’s problems.
It further suggests that simplifying the claims procedure is a pressing issue that needs to be addressed in order to make insurance more approachable and desirable. Collaboration and strategic initiatives by organisations like IBAI, IRDAI, the General Insurance Council, and the insurance industry at large that are dedicated to efficient risk management are necessary for this transformation. Collectively, a collaborative approach is required to expand coverage, spread awareness, and increase the penetration of insurance in the nation.