Exclusive: Coverfox tells us why online insurance is a good idea, especially after demonetisation

India has primarily been a life insurance market, currently at $60 billion and growing at 12% every year. General insurance on the other hand is currently a $11.44 billion market and growing at 17% year on year.

Most of us are in general not aware about the features they should consider while buying Insurance. They find it hard to arrive at a decision about choosing the right plan because the information is not readily available. The insurance industry is still behind in its technology platforms.
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Coverfox.com is not an Insurance broker using technology. Every policy feature is looked at from multiple perspectives to arrive at its representation for the user in a way he or she understands the best. They have an internal policy scoring engine, which goes through over five dozen parameters for each insurance product, taking into account user demographics and giving personalized scores to each product for every user.

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In the wake of demonetization, we see many traditional sectors being affected and financial services haven’t been spared either. Business Insider got in touch with Devendra Rane,CTO & Co-Founder, Coverfox to find out how the industry is shaping up after being forced to digitize, for consumer advantage.

“The active Jan Dhan accounts, greater push on Aadhar integration, UPI and other government initiatives have already laid the foundation of a cashless, digital economy. With demonetization, citizens understand the relevance of going digital. Moreover, people are also realizing how easy, secure and fast the digital medium of transacting is.’’

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Going digital does bring down operating costs, the benefit of which will be brought down to the consumers in the form of discounts, better services and improved product line-ups.

“There are two key areas in which the insurance sector will see impact of demonetization. In the short run, we are already looking at trends where more and more customers are willing to pay the premium online instead of cash to offline agents. If you look at the health insurance sector, hospitals do a lot of transaction in cash, however, with cashless claim settlement, you can go completely cashless.

With active Jan Dhan accounts, insurance can be made available to a lot more Indians now. This will also increase insurance penetration and bring premiums down in the long run.

“Demonetization has bridged the gap between people who are skeptical of online transactions and the efficient, effective technology that is at their disposal across industries’’ he signs off.