Unlike basic health plans, which cover hospitalization related to illness and accidents, insurers are now analyzing consumer behaviour and identifying cohorts to offer unique propositions to customers
To become more accessible to consumers, especially to the younger generation who may find the process of buying a policy complex, insurers are introducing customised plans to meet individual preferences these days.
Unlike basic health plans, which cover hospitalization related to illness and accidents, insurers are now analyzing consumer behaviour and identifying cohorts to offer unique propositions to customers.
In an interview with Mint, Ankit Agrawal, co-founder and CEO of InsuranceDekho.com said millennial consumers ultimately regard personalisation as a form of autonomy, and seek products and services that they feel empower them. Edited excerpts:
What is the ratio between customised insurance and normal insurance?
Currently, customised insurance products have a contribution of less than 1%. Since customization is not a new concept for other industries and customers have already experienced personalised services, they expect the same from the insurance industry. Hence the number will increase drastically in future.
What is included in the customized insurance?
Some of the customised insurance offerings are enclosed below:
> Customization basis affordability: Today, customers can opt for Equated Monthly instalments (EMIs) as a payment option on both credit/debit cards and can choose the frequency as per his/her requirement. Thus, making it more convenient for a customer.
> Customization basis diseases: Standalone products such as cancer cover plan, diabetes cover plan, dengue cover plan with indemnity cover and lump sum are offered by insurance companies which provide coverage to a target audience who is more prone to such critical illnesses. Corona Kavach plan was quickly launched by insurance companies just as covid-19 hit the country.
> Sachet products: Low ticket size products such as bicycle insurance, backpack insurance, mobile insurance etc. are also available. These products come at a minimal cost and usually bundled with the main product.
How much is the raise in this model?
We have noticed a big jump in customers asking for such plans and this number will soon increase to double digits in years to come. Reported numbers are not available as of now. However, customers are looking for specialised insurance and we are also in touch with various partner to provide suitable services to them.
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