The growth of the life insurance industry that is to be muted in the short term but it will be back to the normal levels in the medium and also long term during growing awareness for insurance cover in the wake of corona virus, as according to Edelweiss Tokio Life Insurance. The corona virus outbreak and with the subsequent lockdown which particularly led to sluggish business activities across the sectors by including the life insurance industry, as Edelweiss Tokio the Life Insurance MD and CEO Sumit Rai told.
“Over the last 2 months of the lockdown, the life insurance sector has been posted negative growth in the new business premiums.? I expect the industry growth to be muted, in the short-term,” as he told PTI in an interaction. Although, the increased awareness and also demand for life insurance might bode well in the medium to longer-term and “we should see the industry growth coming back to the normal levels”, as he added to the statement.
Adapting to the new normal, as he told, that barring a small proportion of clients who buy online, life insurance in India has largely relied on face to face advisory, as until recently.
Among others, the life insurance sector is building automated customer engagement models and structures to increase digital connect.
“Over the past 2-3 months, we have already built a learning tool and enabled customer segmentation, for personalized customer experience,” Rai added.
As companies are learning various lessons to deal with this pandemic situation, as he told Edelweiss Tokio Life expects those learnings to make way for some the innovative products and services amid the year.
Speaking of the company’s performance during this pandemic situation-driven lockdown, he told even as the life insurance sector has been posted negative growth in the new business premiums, the company is among a few companies to have bucked the trend.?
“Supported by robust technology infrastructure and a culture of agility, we have been able to re-imagine our advisory and client experience to match the new normal,” as Rai told.
Talking about the industry, Rai told that as the pandemic situation is not yet put behind, various challenges would continue to exist in the immediate future.
“We will need to follow the social distancing norms, and client interaction for a large part would continue to happen digitally I see the entire industry that focusing on technology innovation and also digital enablement of the processes to the realign to this change,” as he added.
India’s life insurers registered a fall of 27.92 percent in their collective new premium income till May of the current fiscal year at Rs? 20,466.76 crores, as against Rs 28,395.90 crore by same period a year earlier, as per data from Insurance Regulatory and Development Authority of India (Irdai).
The sum assured fell by 20.23 percent to Rs 4,65,050.59 crore as against Rs 5,83,009.39 crore.