Bajaj Allianz Life is not expecting significant growth for the insurance industry this year due to coronavirus impact on the economy, a top company official has said.
However, the insurer said, customers, will like to buy policies online.
“I think this is a year of survival, not everybody is likely to invest (in policies) when the GDP (gross domestic product) is not likely to do good. This year will not be a year of significant growth,” Tarun Chugh, MD, and CEO of Bajaj Allianz Life Insurance, told PTI in an interview.
Chugh said the customer behaviour will change a lot, which will push insurance companies to adapt to digital and virtual means of product selling going forward.
“I think corporates will take their own call…to take it as a new normal. A new normal means a lot of virtualisation and digitisation. My bet is that it is likely…until a vaccine is out but still it is a year away,” Chugh said.
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Now, customers are going to like too much face-to-face dealings so quickly, he said.
And the trend is likely to remain so for at least a year and a half.
“Virtualisation will be very critical, customers are already doing a lot of things on a virtual basis. And they will prefer those brands and distributors who are willing to work virtually and be able to provide solutions virtually. So that being the endpoint, we are basically, therefore, re-learning, re-training ourselves as we go forward,” Chugh said.
Recognising that customers have their own concerns, he said the company is equally taking care of its own employees during this lockdown.
Bajaj Allianz Life has been supporting them in their work from the home schedule and motivating them through various webinars, social media engagements to keep them motivated through yoga sessions and meditations.
On the customers’ trend, he said the demand is more towards buying term policies.
“What they are purchasing is more of term policies and more of guarantee based insurance products,” he added.
On the policy premium front, Chugh said the premium will not go up this year.
“Premium for the policy will actually come down. Overall on the premium for the life sector, I don’t think it will grow at all,” he said.