The current pandemic will change the landscape of the insurance sector in the country in a big way as it is expected that insurance penetration will increase, expenses of companies will come down and there will be a conscious shift in the product-mix, IndiaFirst Life deputy CEO Rushabh Gandhi said.
On cost front, insurance companies will also be saving a lot as they have an option to allow their employees continue work-from-home, leading to savings on office expenses, rent etc, he added. “The pandemic will change the landscape of the insurance industry. The cost base of insurance companies will go down. It will go down because will only incur the expenses which are critical and expenses which are ‘luxurious’ will reduce extensively,” the IndiaFirst Life Insurance Company Ltd deputy CEO told.
IndiaFirst has managed over 90 per cent efficiency working out of home, he said adding that the company is realising that people can work from home even on permanent basis. “It means you don’t need people to come to office daily. You can save on office space and you can save on rent as well as number of offices. People might continue with the work from home strategy,” Gandhi said. So overall there will be fairly large savings on the expense side, he added. “The second thing which will happen in my mind is that there will be very-very conscious shift in the insurance product mix,” he added.
