India’s digital transformation is evolving rapidly in its financial services sector, with emphasis on ‘Insurance for all’ by 2047. The creation of a digital infrastructure framework has enabled an explosion of demand for digital financial services, particularly insurance. We live in stressful times, which is why insurance is considered a necessity. To know how Zopper is digitally embedding insurance and offering contextual insurance products, read here. To take advantage of instant InsurTech solutions, you can also book a demo with Zopper.
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For instance, the India stack ecosystem packs in powerful digital tools that make insurance policies easy to access, authenticate and enable digitally. Customers are drawn in by the seamless experience that their digital endeavour treats them to. Through this, they can use UPI for digital transactions and they can store their important documents on DigiLocker for ease of reference. Aadhaar-based e-KYC authentication is also easy to manage digitally.
Are You Relying Only on Employer Insurance?
A recent SBI Life Insurance study found that around 43 percent of the survey respondents had concerns about inflation and around 68 percent felt that they had sufficient insurance coverage. SBI’s Life study further highlights that 75 percent of respondents owned some form of insurance coverage and 96 percent of employees who are covered only under insurance that is provided by their employer are notably underinsured, which is a grave concern to consider. The popularity of savings plans is another notable factor as a most popular product category, as it was shown that around 50 percent of respondents own a savings plan.
Life Insurance: Rural India Understands Benefits of Insurance
People from all walks of life understand the importance of life insurance. More so, when you step into rural areas, where there is concern about falling ill and medical expenses, both of which hit a household’s income in a challenging way. To put it simply, life insurance is viewed as a powerful tool that can support a family at a time when hospitalisation and medical expenses are skyrocketing.
Some of the key benefits of life insurance are therefore well–known and understood among people from rural regions. Not only are local communities benefiting from the coverage, local economies also flourish through life insurance.
It’s Not Enough To Take Life Insurance
However, it is important to remember policyholders need to inform their family members about the benefits so that they are aware of having a policy and figure out how to manage it later. A news report in the Mint highlights that many families are not aware they have a life insurance policy because they were not informed and there is a general tendency in Indian households where men do not disclose about insurance policies and finances to their immediate family members. As a result, most family members do not have clarity about the details of existing loans, financial liabilities and insurance policies.
As life insurance plans serve as a risk minimisation tool, it empowers individuals to take risk and push across their comfort zones in multiple ways. This further boosts the local economy, besides protecting the insured person’s loved ones and dependents. Nowadays there are so many easy-to-understand InsurTech solutions, you can suit one that is perfectly tailored to your specific needs.