How Can Insurance Companies in India Target the Next Half Billion?
By 2020, it is a well-known fact that India will be the youngest country in the world. With its population continuing to grow, and the fact that a large number of individuals are youths, it’s surprising that this part of the population is greatly excluded and underrepresented when it comes to insurance policies.
That being said, there’s confidence that change is well on its way. However, one factor that needs to be addressed is the fact that a large number of young Indian adults are active mobile phone users. In fact, about 3 in 4 young adult Indians are active users of mobile phones.
Moreover, it is anticipated that nearly 500 million new internet users will be joining the online world within the next 5 years. This new group has collectively been given the name, Next Half Billion.
Where Does the Next Half Billion Originate From?
The idea is that this New Half Billion will be digitally proactive, and is poised to provide opportunities to business innovation with a purposeful goal. This is due to the fact there will be a strong urge to remain digitally relevant in the future of the market.
For this to take place, there will have to be two components that play a monumental factor in the process. The first one is an upward trend in digital payments, and the second one being affordability.
As a matter of fact, the reduction in data costs has resulted in a significant drop in the gap focusing on internet usage from the different classes of society.
Today, the data between a casual laborer and a student is quite comparable. Additionally, the fact that online transactions have been made seamless and secure also plays another critical role in this process.
That’s because it’s enabled parts of the Indian diaspora to effectively carry out economic activities using the digital spectrum.
Analyzing the Importance of the Online Model
The fact that nearly 90% of all new Indian businesses are based on an online model attests to this.
That being said, it is quite natural to see traditional industries undergo a disruption so that they can adopt an online model. Certainly, the insurance industry is one not to be left behind.
The fact that insurance is a necessity in the creation of a healthy investment mix shows how important this sector is. Unfortunately, this area has been in the shadows for most of India’s new population.
One of the reasons for this crippling situation is the fact that the thought of insurance is not one that regularly crosses the minds of individuals. Additionality, the complexity of the insurance sector is another reason why it gets that proverbial shrug.
The big problem is that despite the importance of insurance in daily life, the sector itself hasn’t evolved to become a daily part of the Next Half Billion’s lifestyle.
That being said, it would need to be contextualized, simplified, and broken down in such a manner that it resonates in the day to day lives of these individuals, as well as the risks that are involved.
Targeting the Next Half Billion
Keeping this in mind, an early acceptance of financial practices is a great way to incorporate this importance to the masses.
However, a lot more need to be done when targeting the Next Half Billion.
Today, the digital way is no longer an option. Rather, it has become the default option due to the millions of mobile-users coming onto the scene.
The insurance sector can begin by creating both context and ease when it comes to handling the point of sale, as well as capturing this market that would otherwise, be unreachable without the digital influence.
Factors such as price tiering will play an important role when it comes to creating tangible results. Keep in mind, however, that the economic gap between users might be quite massive.
Insurance organizations must, therefore, strive to attract these modern consumers in a manner that speaks to them financially, and in a way that feels natural and homegrown.
That being said, there are still some barriers hampering these insurance companies from reaping the fill benefits of these opportunities. Factors such as the form of language being communicated, as well as the purchasing power of individuals, need to be addressed before these insurance companies can gain full access to the Next Half Billion.
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