How can standard insurance products help customers?
Any insurance company needs to let out products that satisfy customers’ demands and build them in such a way that it becomes popular among people and fetch the company benefits in the form of profits. In this way, the popularity of insurance products depends on many factors. One such factor that can be put into consideration is the availability of standard insurance products.
This is so because due to the diversity of health insurance products in the market, it is essential to select a hassle-free formalities product. This can be done by supplying customers with standard insured products where the terms and conditions are not challenging to comprehend. It helps the customers to make well informed more comfortable choices.
The essential function of standard insured products is that it helps build transparency between the customers and the insurance companies. It also creates a positive spirit of competition among the insurance companies, which further promotes them to offer better products that are cheaper and suits people’s requirements.
Selecting the right kind of insurance product by customers helps in sustainable growth in the insurance sector both for the customers and the insurers. It helps sell more products by the insurance companies and promote the right products for the customers.
This move by the Insurance Regulatory Development Authority of India (IRDAI) is guided by their will to choose insurance products for the customers properly. This move has enhanced customer buying of standard insured products in the market.
The products that have been newly standardised by the insurance companies in the last six months are:
- Arogya Sanjeevani
- Corona Rakshak
- Corona Kavach
- Saral Jeevan Bima
- Standard Personal Accident Cover (Yet to be named)
The regulatory body of insurance companies is of the opinion that these standard insurance products will provide easy accessibility of insurance products’ services to the customers and help build a coherent mechanism of trust and transparency.
Why is there a need to have standard insured products?
Any customer needs to make a well-informed choice after reading all the terms and conditions of the document of the product they are planning to buy. Standardisation of products helps build trust among the consumers, but a more critical measure is it enables insurers with a proper, well-informed way of marketing their products.
It has to be noted that sometimes the insurance products raise many disputes among people. In such a situation, what helps the most to resolve these disputes are the guidelines or the terms and conditions of the policy that has been bought. Suppose the customer has chosen a standardised product. In that case, the dispute gets resolved in a much easier fashion as the terms and conditions of s standardised product are easier to understand and quite transparent.
Moreover, in an atmosphere like Covid19, it becomes even more imperative to buy a standardised insurance product where everything is full of uncertainties. It makes even more sense, that we have an insurance product standardised with simplified terms and conditions.
In the case of the standardised insurance products, the insurer’s responsibility is to explain all the product’s terms and conditions to the customer. This is crucial because, with increased competition, there is an increased supply of various types of insurance products. Standardisation eases that choice for us and makes for an even better outcome for the insurers where even they try harder to posit solutions for buying quickly accessible products.
Keeping all this in mind, we need to realise that promotion of these standardised insurance products is necessary to fill the gaps created in providing health protection to people and providing a stable product that will also help enhance the revenue of the insurance sector.
Whom are these products most beneficial for?
These standard insurance products are essential for people who are buying term or health insurance for the first time and do not have any other financial cover hereafter—those who do not believe in doing any savings for the future.
Now, for people who have huge families to take care, feel a significant liability of risk, and find this kind of standardisation not fulfilling any of their hugely lit demands, they can opt for more comprehensive and elaborate health or term covers encompass more options within them. Despite this small drawback that is in itself an option available to be discarded out of choice, this measure by IRDAI is becoming hugely popular in other countries as well as Russia. It is also to be borne in mind that all health insurance policies cannot be covered in this standardisation process as a life insurance policy cannot be made standardised. For that, you will have to stick to a policy that is covering life insurance in all its details. That is one thing that you need to keep in mind, otherwise, keeping all these factors of standardisation in mind, and its easy accessibility, one cannot deny how necessary these measures of standardisation are.
With a wide array of insurance products available to choose from, it is critical to select the right product that suits your needs. BimaKaro.in is the perfect place to research various insurance products and make an informed decision. You can compare different products and even select additional features or riders as per your needs.