Consequences of Insurance industry market change
28-08-2015 / admin /
The nature of insurance industry ceaselessly undergoes changes with new trends, innovation and market requirements. However, government also plays an essential role in this process. Nevertheless, there are many positive as well as negative outcomes of these changes. Let’s take a quick look at these outcomes:
Online Sale reaching dramatic hike
Internet has been the strongest medium for day to day activities. Millions of people are spending their significant time on internet using free and paid services.Insurance industry does not stand exception for this. People are getting educated through different mediums to compare and buy the most suited policies online. Previously, it was strongly observed that customers used to gain details pertaining to a suitable plan online and buying them offline. This trend has been faded away as online buying has been trying to overpower the market. There are some policies which are exclusively sold online. Moreover, the online comparison and details are considered to be genuine and unbiased without getting manipulated by any sales guy. Along with this transparency, there are heavy discounts and offers that fascinate potential customers.
Since people are getting smarter in choosing their plans, they make sure to have maximum cost reduction with huge coverage. They always seek for lucrative investment. To tap this smarter audience, insurance agencies are coming up with tailor made plans customized as per buyers’ requirements. Also, to suit this niche audience, agencies are introducing creative products. Agencies are also trying to tap the “out of coverage” social strata to widen this reach. They are carving the need for these insurance plans to insure the future by advancing pension plans & child plans etc. Here, the health insurance segment will flourish rapidly with highly customized and preventive healthcare plans
with minimum administrative cost.
Excelling Term insurance
Peeping through the low demand for Term Insurance, industry players are pushing these term insurance plans with low premiums to make it more affordable for masses and presenting it as more moneymaking with exhaustive coverage. This Term insurance industry will soon face a competitive price war which will result into fall in price of the same with significant increase in number of buyers.
Advancing Customer relationship
Insurance agencies will increase connect with the buyers as well as with the potential customers. The pace with which the use of social media is increasing to serve the customers is really very high. This will undoubtedly increase the customer engagement and help agencies to serve better of their best and eventually strengthen customer relationship. Agencies will be with their customers right from selling the product till the end of policy or claim time.
After going through above consequences of market change, it seems this will not only strengthen customers to utilize the product at the fullest but also helps agencies to a strong connect with its audience to serve better with high conviction.