Imagine a scenario where you’ve been diagnosed with a life- threating disease that requires you to be hospitalised for quite a number of days. The first thought that strikes you would be- Do I have the right health insurance to cover the expenditure involved in my recovery? Do I have a life insurance policy that takes care of my family, if something were to happen to me? All these are pretty valid questions as insurance, nowadays, has become more of a necessity than a luxury.
Insurance is an ever evolving industry, where new benefits are being offered to policyholders as we speak. However, when it comes to buying insurance, almost 55% Indians still rely on the traditional method of contacting an agent and making the final purchase. Why, you ask? Let’s dive deeper.
Reasons why people buy insurance from agents
Trust- One of the major reasons why most Indians still prefer buying an insurance policy from an insurance agent is the fact that they have been in the industry for a while and have a certain trust factor associated with them. With trust, comes the sense of relief that the insurance agent shall suggest only what’s best for the customer and help them at every step of the way to make the purchase.
Crisis Management- In case something untoward were to happen, most people need a reliable person to guide and pull them out of that unfortunate situation. Hence, an insurance agent must be good at crisis management so as to help their customers at every step, be it making a purchase, raising a claim or dealing with disputes.
Better Deals- Many insurance agents are licenced to sell multiple insurance products. Therefore, they serve as your one stop shop for all insurance needs. Just like many large organisations offer bundle deals, these insurance agents might be able to help you get a better deal, if you buy multiple insurance products from them.
After Sales Service- An insurance agent’s job does not end with the purchase made by the customer. Part of his job also includes helping customers with any after sales assistance that they may require. This includes reminding them of premium payments, renewal dates, or raising a claim with the company; the agents is considered to help them in every scenario.
With the aforementioned benefits, it’s obvious that a customer would prefer to take the agent route while intending to buy an insurance policy. That said, with the advent of technology, many are considering buying insurance plans online. Here’s why this unconventional route is gaining popularity among the masses-
The 3 Cs
Cost- Buying an insurance policy online has its fair share of benefits, and one of them is the cost associated with the purchase. If one buys insurance online, they eliminate the commission charges that the agent would have received for his services. Hence, insurance plans online turn out to be way cheaper than buying them from an insurance agent.
Comparison- World Wide Web has various online brokers and aggregators that help one make a fair comparison between multiple insurance plans. These platforms assess one’s insurance needs correctly and provide unbiased advice on which plan suits the customer’s needs the most.
Convenience- Online platforms can be accessed from anywhere and at any time of the day. Hence, they offer the convenience of opting for an insurance plan, without any physical effort. Various plans can be viewed, compared and purchased at the click of a button, thereby ensuring an overall seamless process.
While technology has brought an incredible change in the way the insurance industry is functioning, there still are many who prefer to buy insurance from agents. The shift from agent to online is gradually happening, thereby assisting many to buy insurance in a seamless manner.