Key points from an interview of Mr. Subhash Khuntia, Chairman, IRDAI published in TOI (18th Nov, 2020)
- WFH will create more demand for cyber insurance
- Insurance is by definition a counter-cyclical measure to protect you against any economic downturn
- Incidence of natural catastrophes and pandemics has become more pronounced leading to increased demand
- Out of pocket expenditure on health in India is as high as 64%, whereas in developed countries, this figure is less than 20%
- The middle class covering 70 crores is the ‘missing middle’ in the insurance sector
Opportunity for this business to grow is tremendous. There is a natural market demand. You can, not just meet your own business goals and meet the customer’s requirements, but use this as the starting point to engage with the customer and talk about your other offerings too.
Create awareness, easy to understand products and affordability are the concerns that need to be addressed by insurance companies and intermediaries like retail bankers
IRDAI has done it’s bit to offer simple, standardised products across all insurance companies :
- Arogya Sanjeevani for health
- Corona Kavach for Covid-19
- Saral Jeevan Bima for pure term life insurance
Do not stop with simply checking whether your customer ‘has’ a health insurance policy. He might well have one. Instead check whether it is ‘adequate’ for him and all his dependent family members.
Asking the right question is essential for getting the right answers – don’t you agree?