Digital alliances, momentum in traditional products key for life insurers in 2023

The life insurance industry faced the brunt of elevated claims during the pandemic, but the period also brought with it increased awareness regarding the need for life insurance and accelerated digital adoption across industry players.

In addition, 2022 also saw a slew of regulatory reforms, including amendments to the IRDAI sandbox, aimed at driving insurance penetration, enhancing customer centricity and leveraging the growing digitalisation of the industry.

Initiatives

Recent initiatives such as opening of e-insurance accounts and setting up the Bima Sugam platform will aid dematerialisation of insurance policies and help integrate the entire insurance ecosystem, industry participants said.

“This year, we saw a rise in savings insurance plans and term plans with features like ‘special exit value’, which added a money-back feature to the traditional term plan,” said Satishwar B, MD and CEO of Aegon Life Insurance, adding that this was aided by the emergence of newer digital distribution avenues through insuretech partnerships.