Riding on the growth of internet reach in the country,
private sector leading insurer HDFC Life Insurance Company is expecting to
double its revenue from its online sales by 2016. It is seeing 10 per cent of
its new insurance business coming from the online sales in just about two
years.“While the offline insurance premiums have a renewal rate of about 70 per cent, we are seeing over 95 per cent renewals for online insurance,“ said Executive Vice-President & Head (Strategy and Technology) for HDFC Life, Mr. Subrat Mohanty.
The insurer has grown 20 folds to Rs 300 crore since 2012, when it started online sales.
The online channel of insurance sales is more convenient as it does not require any agent's involvement, and customers can themselves compare and choose best suited policies for themselves using different web aggregator present in the market. Also, online policies comes 20-25 per cent cheaper as there is no middleman involved in the transaction. Most of the websites selling online insurance do not charge brokerage but just a small commission for passing on the lead.
HDFC Life is facing resistance from agents for its offline business. The agents fear loss of business to the online channel. However, the insurer is trying to convince them to move online. The insurer is planning to launch a mobile app by October this year to enable customers to buy and get information about various product offerings from the company on the go.
HDFC Life Insurance is a joint venture between Housing Development Finance Corporation (HDFC) Limited, one of India's leading housing finance institution and Standard Life Plc, a renowned financial savings & investments services provider of United Kingdom.
Source: http://www.insuringindia.com
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