Riding on a confluence of factors like increase in the working age population, structural rise in financial savings (as a percentage of household savings), greater financial inclusion and further penetration through digitisation the life insurance industry is definitely set for rapid growth in the year to come.
Protection solution’s outlook for 2018: The life insurance industry will expand its protection solutions bouquet. With falling interest rates and people looking for wealth conservation, guaranteed life insurance solutions will also gain prominence. With the bullish stock market, Ulips will hold the current momentum of growth. To increase penetration and provide life insurance for all, many new-age over the counter life insurance solutions will also be offered to customers to allow easy and on the go purchase of such products.
Distribution outlook: Distribution channels like agency, bancassurance, and online distribution have widened the reach and reduced costs for life insurance firms. Emergence of the open architecture with a few banks adopting the same aided growth for the sector.
Industry will leverage on the open architecture model with more banks selling insurance solutions for more than one life insurer.
This will offer more and better options for the customers to choose from. 2018 will witness emergence of unique distribution models like the India Post Payments Bank (IPPB) getting into selling insurance products.
Such channels along with the traditional agencywill ensure better penetration of life insurance products.
BIGGER COVER
- 2018 will see emergence of unique distribution models
- Ulips will hold the current momentum of growth
The writer is MD & CEO, Aditya Birla Sun Life Insurance
