People are now taking life insurance at the age of 30, earlier they used to take it at the age of 40. life insurance; insurance; People are now taking life insurance at the age of 30, earlier used to take it at the age of 40
By Amit - May 14, 2022
One hour ago
After the Corona era, people have become very aware about securing life goals. Earlier people used to buy life insurance after the age of 38-40, but now its average age has become 30 years. Even the youth of 24-25 years of age do the first thing as soon as they get a job, buying a life insurance policy. Tarun Chugh, MD and CEO, Bajaj Allianz Life Insurance gave this information in a conversation with Dainik NewsBust India. Highlights of the conversation…
What are the major changes in the life insurance industry after the Corona era?
The importance of life insurance has increased tremendously. It was considered a push product, but now people are coming forward and buying life insurance. Earlier, most people used to take life insurance at the age of 38-40, but now its average age has come down to 30. The youth of 24-25 years are also buying the policy as soon as they get a job or get married. There has also been an awareness among people about securing their life goals. Among all the sectors, the insurance industry saw growth even during Corona.
What are the industry growth figures? What was the growth of Bajaj Allianz during this period?
In the last financial year i.e. 2021-22, the growth of the life insurance sector was 22%, while during 2020-21 it was just 3%. The last financial year has been the best for Bajaj Allianz Life. Our growth stood at 49% during 2021-22. In comparison, our growth during 2020-21 was 28%. The main reason behind this rapid growth was that in the Corona era, we adopted digitization rapidly and changed the way we sell products.
What was the claim status during this period?
If we talk about us, last year we got a death claim of 2000 crores. Earlier, the claim of about 1300 crores used to come. For this, more reservations had to be made. Last year, the claim related to Kovid was Rs 450 crore. The claim settlement ratio stood at 99.02%.
Which type of life insurance products sell the most in India? What is the average coverage taken in a term plan?
There is a general belief that term plans are selling more after Kovid, but it is not so. Terms are also increasing, but people in India prefer to buy Guaranteed Savings Plans. In term plans, 70-80% people take a cover between 50 lakh and 1 crore.
Are the jobs of agents at risk due to digitization?
No way. To buy insurance, you need someone to explain. The advantage of digitization is that agents are now becoming tech savvy. The job of agents has become easier and they can now work from anywhere. As the demand for insurance is increasing, so are the jobs. We had recruited 36,000 agents last year. This year also about 10,000 more will be recruited. Recruitment is happening all over the industry.