India's insurance companies feel the digital pinch amid Covid-19 pandemic

Globally, the insurance industry is moving to a model where insurance policies and premiums are tailored to customer profiles aided by vast technological leaps

Insurance
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In August, HDFC Ergo and ICICI Lombard withdrew sales of their insurance products from third-party brokers

Subhomoy Bhattacharjee New Delhi
The second half of 2020 is proving to be a tough period for India’s insurance companies. For years these companies wrote insurance policies and serviced claims in a limited universe of mostly salaried people but recent trends have disturbed the pace. The first of these is the Covid-19-induced furious pace of adoption of digital means to sell insurance. This digitalisation has hurt non-life companies the most with digital insurance aggregators cornering clients. The other is the dip in the interest rates that has reduced earnings from long-term investments for life and reinsurance companies.

In August, HDFC Ergo and ICICI Lombard withdrew sales of their insurance products from third-party brokers. They join LIC, which has so far resisted the temptation of

First Published: Aug 30 2021 | 06:03 AM IST

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