Page 12 - Insurance Times May 2020

Private Life Insurance

News

Life insurance firms record traditional term insurance is rising af- FY20 against Rs 1.1 lakh crore during
ter the pandemic started spreading FY10. The CAGR growth is 8.2 per cent
45% degrowth in April across the world. If 45-50 per cent between FY10 and FY20.
It was when COVID-19 virus started customers preferred traditional plans
spreading in India, the insurance regu- earlier, it has increased to 65-70 per Future Generali India Life
lator IRDAI had a discussion with life cent right now. The demand for wealth
insurance companies regarding the products, which are deployed in gov- Insurance company devel-
launch of COVID-specific products. But ernment securities, bonds and stock ops digital delivery plat-
the discussion halted after realising the market, has fallen, he added.
fact that all life insurance products "We are in uncertain situation. Nor- form for insurance agents
cover the pandemic deaths in their mally, we plan for the full financial year Future Generali India Life Insurance
products. "When we thought of having in March. But this year, it doesn't make Company has developed a 360-degree
a COVID-specific product, we had a sense to put a plan. We reopened 300 digital delivery platform for its agents
discussion with the regulator. Finally, to carry out their everyday business
of the 600 branches of Bajaj Allianz in
we decided that it didn't make sense green and orange zones. About 2,000 activities without having to move out
to launch a specific product as customers come to the branches every- of their current locations in view of the
coronavirus is already covered in all life day nowadays. In fact, we are using COVID-19 crisis.
insurance products. Source of the the time to transition our business "The unprecedented global COVID-19
death is not an issue in the life insur- crisis caught businesses off guard and
model. We are ensuring that we adopt
ance products sold in India," said Tarun digital processes and the customer is disrupted our routine. The new normal
Chugh MD & CEO, Bajaj Allianz Life getting used to it. We will not be de- calls for businesses to adapt and adopt
Insurance. digital solutions at a faster pace.
pending on the face-to-face sale so
The life insurance industry has wit- much. We are training our advisors to "We are one of the few insurance play-
nessed a degrowth of 45 per cent in get to selling and servicing through ers who worked on a solution using
April. Usually, March is a big month for online. We will have to co-exist with agile methodology and was quick to go
the industry and April-May are not so COVID-19. In this context, you cannot to the market. With our integrated
significant. "After the lockdown, 95 per have the plan for the year. You should online platform for distributors, we are
cent of the product sale is happening have the plan for the month or the better off now to adapt to the new
digitally and the rest we get from quarter," he said. normal," Future Generali India Life In-
aggregators. The digital sale has in- surance Executive Vice President and
The insurance business is seen to be
creased by seven-eight times during the impacted in the first quarter of FY20 Head - Proprietary Channels, Subhasish
lockdown. The ticket size has fallen, but due to the coronavirus pandemic. Acharya said in a statement.
the number of products sold has been However, rating agency CARE Ratings
increased. People are committing lesser said that insurance space will record From recruiting agents to identifying
amount for insurance as there has been leads, generating interest, calling cli-
strong performance, especially digitally ents, having online conferences or
an increasing tendency to keep cash," going forward. The data given by CARE
Chugh said. Bajaj Allianz witnessed a flat suggests that overall life insurance in- video chats with customers, to finally
issuing a policy document -- all these
growth in the lockdown.
dustry recorded a first-year premium activities can be done online at one
Chugh said that the demand for the income of Rs 2.6 lakh crore during place, Acharya added. T

12 The Insurance Times, May 2020