The general insurance business in India is currently at Rs 77K crore (US$ 12.41 billion) premium per-annum industry and is progressing at a healthy rate of 17 percent.
In India, house insurance can be classified as building insurance which covers the structure against man-made and natural disasters; and content insurance which covers all household items, the value of which is calculated on market price. To elaborate, a home insurance policy would cover damage caused by fire, storm, lighting, earthquake, explosion, riots and damage from the overflow of water tanks or the bursting of pipes, acts of terrorism and aircraft damage.
Interestingly, according to the IRDA, only about 1% of Indian homes are actually insured! This trend is all set to change and things are bound to look up in the days to come.
In the wake of catastrophic earthquake, this industry has seen an upsurge for property/home insurances, with several banks and financial institutions advocating property insurance along with loans.
Traditionally, the insurance companies in India have followed an indirect approach towards customer acquisition. One major drawback of this model is that they end up losing somewhere around 3-5% per policy on commissions. With the dawn of digital and social media, this model of engagement needs to be changed. Companies also need to create a process to educate customers about various other products apart from life insurance.
CMO’s need to create a digital sales strategy so as to engage directly with the customer which in turn will enhance customer engagement leading to higher revenue.
@ speradigital we have customized processes and methodologies for Insurance companies that can them drive revenue and growth.
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Author: Debaleena Debnath
Debaleena is a digital media consultant @ speradigital
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