The empowerment enables agents to provide personalised guidance and support to policyholders, facili
India's insurance industry holds immense potential, with 14 million people forecasted to join the middle class by 2030. Yet, it grapples with low penetration rates, standing at a mere four percent compared to the global average of seven percent. To address this disparity, there is a pressing need for increased awareness, innovative distribution channels, and enhanced customer trust in the system. According to a leading industry report, "How India Buys Insurance?" over 80 percent of policyholders, particularly those from Tier-II and Tier-III cities, prefer to research online and buy offline. Familiarity with agents is an essential requirement for this demographic. IRDAI, in a progressive step, has introduced the Point of Sales Person (PoSP) model to make it easier to sell simple insurance products and drive penetration. This model is a compelling blend of technology and a human interface that makes the insurance journey smoother and more credible for consumers.
Harnessing the power of phygital through PoSP
At the core of the PoSP model lies the empowerment of agents through comprehensive training, access to advanced technology, and attractive compensation structures. This empowerment enables agents to provide personalised guidance and support to policyholders, facilitating informed decision-making in insurance purchases. By seamlessly integrating traditional agent networks with digital tools, the PoSP model enhances distribution efficiency while preserving the human touch in sales interactions. Moreover, by equipping agents with a diverse range of insurance products and investment options, insurers can cater to varied customer needs and preferences, thereby building their confidence in the industry's inner workings. The PB Partner network is spread across 19.1k pin codes across India. All in all, Tier-II and Tier-III cities account for almost 50 percent of the incoming business.
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Service is the future of insurance in India
The trajectory of the insurance sector is unmistakably leaning towards a service-centric approach. There's a notable shift towards crafting personalised insurance solutions that are finely tuned to cater to individuals' unique needs and lifestyles. Moreover, integrating data analytics has changed how risks are assessed in insurance. This evolution enables insurers to adopt more accurate pricing strategies, thereby optimising the balance between risk and coverage. The PoSP model is of utmost importance in this context. It gives the customers an ideal mix of all the factors one would want in their insurance experience.
Enhancing distribution through technology integration
Technological integration is pivotal in the PoSP model, enabling agents to deliver efficient and transparent insurance services. AI-driven tools, such as PB Inspect, streamline claim processes, reducing complexities and expediting settlements. Through strategic partnerships with InsurTech companies, PoSP agents leverage innovative solutions to extend insurance reach to previously underserved regions, fostering greater accessibility and inclusivity. Additionally, the PoSP model facilitates seamless online-offline integration, catering to the preferences of those who research online but prefer to buy through in-person interactions with known agents, thereby bridging the gap between digital convenience and personalised service.
