The previous year was marked by many positive reforms inundating the insurance sector. There was an unambiguous impetus upon the restructuring of motor insurance that led to stability in this sector. The sales may not have sky-rocketed but major players could easily avoid cash crunch in the wake of these reforms. Now, fresh policies and structural changes are expected to sail this ship further in 2016 with the latest trends like:
No more wrong selling:
This year, you can expect to get rid of this practice. The problem imperatively existed in this sector for many years. But with the passing of Insurance Laws (Amendment) Bill, 2015, companies will be held liable for such misrepresentation of facts. A penalty up to Rs. 25 crores will be levied on the companies breaching this law.
Customized plans for motor insurance:
This has been a problem with Indian insurance space for years. In the year 2016, you will get better benefits with customization of the insurance plans according to specific needs of each buyer. Insurance Regulatory and Development Authority (IRDA) has laid down certain guidelines and limitations to this rule.
Increase in online selling of insurance policies:
It has been realized lately that the growth of this sector largely depends upon the robust online selling verticals. As such, many leading insurance companies have already made a foray into this domain with online listing of their plans. Technology can also play a significant role in other spheres like car and 2- wheeler insurance renewal as well. Insurance companies are using advanced technology solutions to verify and settle the claims for speeding up this process. It is definitely a reform to look out for.
Increased FDI will promote the motor insurance sector:
With increased FDI cap of 49%, foreign insurance giants are lured to enter Indian markets. They will invest more money into this sector which will ultimately bring better prospects and recommendations for the end buyers.
Shift in customer behavior:
Apart from the regular privately owned bikes and cars, this insurance sector will witness a paradigm shift towards the taxi services and self-drive rental cars. The organized taxi segment is developing at a fast pace and customers prefer the services of private players like Uber, Ola, etc. for commuting. This will bring the focus of insurance companies on these segments escalating their purchases.
These are some of the trends that may redefine the future of motor insurance companies in India. Whether you are looking for a new plan or considering your 2- wheeler insurance renewal, visiting this website will benefit you in many ways.