Hyderabad, 8th August 2024: Policybazaar, one of India’s biggest insurance platforms, recently organized an exclusive press meet in Hyderabad with a special focus on Telangana and Andhra Pradesh. The event unveiled significant trends driving innovation in the Indian insurance ecosystem. The press meet was addressed by Sajja Praveen Chowdary, Director, Policybazaar, who spoke about key growth metrics and evolving customer preferences that are reshaping the insurance landscape in the country, especially in Southern states. Policybazaar’s recent data reveals impressive year-over-year growth across various segments, reaffirming South India’s leading position in insurance penetration and financial prudence.
Here are some key highlights –
~100% YoY surge in enquiries across term, health and savings plans
The nearly 100% year-on-year growth in enquiries for term and health insurance plans in South India is a testament to the increasing financial awareness among consumers. The surge in enquiries for term and health insurance plans is a clear indicator that consumers are becoming more financially literate and are prioritizing financial protection. This dual focus on protection and health is a positive development, indicating that people are not only thinking about their immediate needs but are also planning for the long-term well-being of their families.
Telangana is one of the fastest growing states at a YoY growth of 76% with the following cities in the lead –
(a)Hyderabad: 73% YoY Growth
(b)Warangal: 100% YoY Growth
(c)Khamman: 65% YoY Growth
The foresight of long-term financial planning
An increasing number of consumers are now inclined towards long-term financial planning by investing in Unit Linked Insurance Plans or ULIPs. These plans have been historically known to offer excellent market-linked returns along with life cover. The recent Budget announcements, which raised the Long-Term Capital Gains (LTCG) tax rate to 12.5% from 10% on gains over Rs 1.25 lakhs. Since annual investments up to Rs 2.5 lakhs in ULIP are tax-free, this has made the plan even more attractive and led to an increase in demand. This reflects a broader understanding of a maturing consumer segment where consumers are making informed decisions that align with both their long-term financial goals and immediate tax planning needs.
End-to-end convenience: Right from purchase to customer service
A significant proportion of customers in South India, particularly in Hyderabad, prefer purchasing policies at their convenience and express interest in buying insurance at home or office. While in Telangana, 35% customers have expressed interest to purchase at home, in Hyderabad, 33% customers have expressed interest to purchase at home. In fact, almost 60% of policy bookings are sourced through these visits. Many customers in tier-2 and tier-3 cities prefer visiting physical offices in addition to online interactions to address their insurance-related concerns. Today, our service team is as large as sales team to address customer concerns effectively. We also constantly innovate based on our customer’s needs. Some of the examples of our product innovation include – homemaker term insurance, PED coverage from Day 1 and affordable health plans.
Policybazaar prioritizes understanding and addressing these needs. Hyderabad, in particular, has a significant number of NRI customers who have either settled abroad or recently returned to India, seeking financial protection for themselves and their families. Our physical offices with a strength of over 500 advisors offer comprehensive guidance to customers. Claims is a key focus area for us and we run several initiatives like Claims Samadhan or Assured Claims Program to provide quick and effective claims assistance.
South India’s rapidly growing insurance market marks a milestone in consumers’ financial planning journey. This reflects consumers’ choice that prioritizes both immediate and future security. Policybazaar is committed to keeping pace with this momentum with tailored solutions and expert guidance.