Insurance Distribution Conference, 17th Jan 2008

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The Presentation was rolled in at the Insurance Distribution Conference at ITC Grand Maratha Sheraton. The presentation provides a detailed note and road map to the beginning of a multi-layered online Insurance distribution channel in India.

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Insurance Distribution Conference, 17th Jan 2008

  1. 1. Online Insurance – An emerging distribution Channel Mahavir Chopra www.InsuranceMall.in Mumbai, 17 th January 2007
  2. 2. Agenda 2. Macro Online Industry in India 3. Global Online Insurance Industry 4. Changing Trends in India. 5. Online Insurance in India, now 6. Online Insurance in India, tomorrow 1. Introduction
  3. 3. Objective The Objective of this presentation is “ to collectively discuss the emergence of a multi-layered online Insurance distribution industry in India and its benefits”
  4. 4. Introduction <ul><li>Internet is </li></ul><ul><ul><li>Medium of Communication. </li></ul></ul><ul><ul><li>An interactive public medium for distribution of </li></ul></ul><ul><ul><ul><li>Information </li></ul></ul></ul><ul><ul><ul><li>Products </li></ul></ul></ul><ul><ul><ul><li>Services & Entertainment. </li></ul></ul></ul><ul><li>which is not bound by operational timings and geographical boundaries </li></ul><ul><li>with comparative low long term costs. </li></ul>
  5. 5. Times are changing Convenience is primary for the consumer today. The consumer is adopting time-saving intelligent media, in every need and want.
  6. 6. Shift for convenience <ul><li>Service/Products Before Now </li></ul><ul><li>Communication Post/Courier Email/Chat </li></ul><ul><li>Jobs Newspapers Portals </li></ul><ul><li>Property Classifieds Portals </li></ul><ul><li>Shares/MF Brokers Portals </li></ul><ul><li>Banking Branch visits Internet Banking </li></ul><ul><li>Travel Travel Agent Portals </li></ul><ul><li>More services like Movie and Event Tickets, Books, DVD Rental are moving online and so would INSURANCE… </li></ul>
  7. 7. Giant in the making <ul><li>Growing Internet Users of 4 Cr., which is 20% of the urban population </li></ul><ul><li>The Projected users by end 2008 is 10 Cr. </li></ul><ul><li>Staggering 28% of above buy online. </li></ul><ul><li>More than 40% use the internet for 20hrs a week, coming closer to time on TV. </li></ul><ul><li>Broadband usage growing by 50% yearly. </li></ul>Internet, as a channel of Direct Marketing – is a giant in the making: Source: IOAI and Juxt Consult Online Reports
  8. 8. Growth of Internet Users Exponential Growth in the no. of users Source: IOAI and Juxt Consult Online Reports
  9. 9. Growth of Ecommerce eCommerce growing at more than 100% for the last 3 years Rs. Cr. Source: IOAI and Juxt Consult Online Reports
  10. 10. Profile of the Online Shopper: <ul><li>Which Avenue can give a better target </li></ul><ul><li>audience than this? </li></ul><ul><li>64% of Age 26 to 45 | 62% Married | 83% Graduate+ </li></ul><ul><li>36% transactions above Rs. 5000 </li></ul><ul><li>45% shoppers go to internet to make an informed decision. </li></ul><ul><li>60% of regular online consumers are Sec B and Sec C. Only 30% are Sec A. </li></ul><ul><li>Close to 70% of the users own a TV, Mobile, Cable TV, Two Wheeler and a Life Insurance </li></ul>Source: IOAI and Juxt Consult Online Reports
  11. 11. Global Online Insurance <ul><li>A matured online industry: </li></ul><ul><li>Whopping $25B Market in the US. </li></ul><ul><li>More than 40% of Retail Lines Insurance – </li></ul><ul><li>Motor, Travel, Home and Life is bought online. </li></ul><ul><li>Presence of Dedicated Online Insurance Cos. </li></ul><ul><li>Focused Online Insurance Brokers and Agents with avg. revenue above $40M (Rs. 160 Cr.) each. </li></ul><ul><li>Directly linked with Risk Carriers (Ins. Cos.) for instant printing of policies and Cards. </li></ul>Source: IOAI and Juxt Consult Online Reports
  12. 12. <ul><li>Traditional Distribution </li></ul><ul><li>Agents and Development Officers </li></ul><ul><li>Corporate Agents </li></ul><ul><li>Lower Product and Price Differentiation </li></ul><ul><li>New-Age Distribution </li></ul><ul><li>Banc assurance </li></ul><ul><li>Work-Sites Model </li></ul><ul><li>Internet Distribution </li></ul>Changing Trends in Insurance Distribution Higher Costs of Distribution and customer need has led to newer Distbn. Channels
  13. 13. <ul><li>IciciLombard.com </li></ul><ul><li>Offers all Personal Line Products online </li></ul><ul><li>BajajAllianz.com </li></ul><ul><li>Offers Travel, Motor, Home Insurance online </li></ul><ul><li>StarHealth.in </li></ul><ul><li>Offers its Health Products online </li></ul><ul><li>CitiNRI.com : </li></ul><ul><li>Offers Online Health Insurance </li></ul><ul><li>MarutiInsurance.com: </li></ul><ul><li>Offers Online renewal of policies bought from them. </li></ul><ul><li>InsuranceMall.in: </li></ul><ul><li>Offers Comparison of all Personal Products including Life Insurance. </li></ul>Some online insurance websites
  14. 14. <ul><li>What an Insurance Broker can provide online?: </li></ul><ul><li>Offers Online Comparison of Price and </li></ul><ul><li>Features. </li></ul><ul><li>Online Advisory on Chat. </li></ul><ul><li>Customized Solutions on email. </li></ul><ul><li>Auto-Renewal Reminder. </li></ul><ul><li>Online Claims Tracking. </li></ul>InsuranceMall.in – Online Broker
  15. 15. Current Online Industry in India <ul><li>More than 60 Lakh monthly Search </li></ul><ul><li>requests on Leading Search Engines for </li></ul><ul><li>Insurance. </li></ul><ul><li>Currently there are 3-4 Insurance Cos. which </li></ul><ul><li>have a seamless online ecommerce presence. </li></ul><ul><li>Conflict between online and other channels internally which hinders differential pricing for the web. </li></ul><ul><li>Online Acceptance of Proposal Forms/Scanned Proposal Forms not widely accepted. </li></ul>Source: IOAI and Juxt Consult Online Reports
  16. 16. Why it makes sense for everyone? <ul><li>A Target Rich Booming Avenue for every distributor of Insurance solutions. </li></ul><ul><li>24/7 anywhere Convenience to the Customer. </li></ul><ul><li>Interactive Generation of Qualified Leads. </li></ul><ul><li>Lower Cost of Distribution and Service on Internet. </li></ul><ul><li>Privacy is becoming a norm across the world </li></ul><ul><li>a live example is Do Not Call registry. </li></ul><ul><li>Direct Marketing would therefore need better avenues </li></ul>
  17. 17. Online Industry – what it can become <ul><li>Modeled on current PIN based online banking/share broking </li></ul><ul><li>All OTC policies and renewals </li></ul><ul><li>could be bought online, with limited </li></ul><ul><li>long term costs. </li></ul><ul><li>Direct login of policy to the Ins. Cos. systems. </li></ul><ul><li>Online printing of policies/cards/duplicates. </li></ul><ul><li>Online changes in policies. </li></ul><ul><li>Online real-time advisory. </li></ul>
  18. 18. <ul><li>Thank you </li></ul>

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