The Last Quarter Leap: Transforming Life Insurance Sales in the Digital Era

1947, Kolkata. A massive tram workers’ strike brought a bustling city to a sudden halt. Strikes were quite common back then. But what was uncommon was how insurance companies promptly set up temporary booths in critical locations, including tram depots and worker unions, to address the workers’ financial uncertainty. Sales surged – a testament to the power of seizing the moment.

Fast-forward over seven decades, and we see a different landscape. Insurance companies now seize the moment every year during the last quarter of January to March.  Like clockwork, the last quarter of the financial year keeps them on their toes to make the best of the peak season. Let’s dive into the reasons behind this frenzy.

Why the Rush?

Exemptions and Deductions: The tax exemption offered on insurance premiums under section 80C of the Income Tax Act is one of the critical drivers for life insurance sales. Customers get a life cover and can save taxes, too. That is akin to killing two birds with one stone. The rush to submit investment documents at workplaces to minimize tax liability significantly contributes to the frenzy.

Strategic Investment Planning: But it’s not just about the saving tax. The final quarter is also crucial for reviewing financial portfolios and making strategic investments that can ensure financial security.

Renewal Deadlines: Since most people buy insurance policies and investment plans during this time of year, their renewal and expiry dates also fall within these months. This prompts people to start looking for new investment options. 

Aligning with Auspicious Beginnings: Taking a cue from the harvest festivals that start in January and continue till April, many people believe in initiating new ventures and financial investments during this period. A new year has begun, and the stars are perfectly aligned – that’s sometimes just enough to influence buying decisions significantly.

Catching the Wave

The reasons I listed above collectively contributed to a busy last quarter for the life insurance companies. Armed with new product launches, targeted marketing campaigns, and promotional offers, the life insurance industry moves closer to India’s goal of ‘Insurance for All by 2047’ each year.  

The digital revolution of the insurance industry has only helped achieve this dream. Today, various customer touchpoints exist, apart from the good old insurance agents. Life insurance can now be sold through – e-commerce platforms, travel websites, insurance aggregators, edtechs, fintechs, cooperative banks, and more. And everyone can have a share of the ever-growing life insurance pie.

The Bandhan Life Advantage

Plug-and-Play Products: At Bandhan Life, we've embraced technology to create products seamlessly integrating with our partners’ platforms. These products are ready to hit the market after 10-15 days of testing.

Excellent Consumer Experience: We've streamlined the insurance buying process using APIs and digital underwriting, eliminating the need for any paperwork, uploads, and scans. Customers can now get insured using their PAN and Aadhars, while our AI engines handle the rest.  

So, there you have it – a look into the whirlwind last quarter of the BFSI sector and the exciting opportunities it presents. Whether it's leveraging tax benefits, aligning with financial goals, catching the latest market trends, or tapping into cultural influences, there are myriad ways partners can capitalise on this annual rush.

And with the digital transformation of life insurance sales, the potential for growth and innovation is boundless. Welcome to the future of insurance – it's fast, efficient, and ready for the taking.