The online insurance market in India is already in excess of Rs.700 crore. While life insurance sales contribute around Rs.300 crore, motor insurance around Rs.250 crore, other insurance lines such as health and travel make up around Rs.150 crore, according to a new Boston Consulting Group (BCG) report released recently.
It is estimated that by 2020, three in every four insurance policies would be influenced by digital channels during the pre-purchase, purchase or renewal stages, the BCG report added.
According to the report titled “Insurance @ digital-20X BY 2020”, though better pricing is a key reason for buying online, convenience and increased transparency are critical factors as well.
BCG has predicted that the life insurance annualized new business premium is poised to grow by 2-2.5 times by 2020 to Rs.1.25-1.5 trillion, with renewals expected to grow to Rs.5.5-7 trillion.
The non-life insurance industry will grow by around 3-3.5 times from its current size to Rs.2-2.3 trillion.
