The opening day of the month, September marks a new phase for life of insurance companies.

In this new phase, anyone buying a ULIP will be subjected to lesser charges, but will be forced to buy a higher level of insurance. Even, the investment performance, service, brand, product design and agents’ training would be the vital differentiators for the growth of any ULIP product.

 

Insurers Need To Look Long Term

However, in the short term, life insurance companies would have a bleak benefit. Now, insurers will need to restructure distribution model and improve persistency ratio for break-evens. The expansion plans of insurance companies will also be on hold.

The Products

There will be tremendous change in the product-mix of insurance companies. Earlier, all the companies had almost 5-10 ULIPs products. But now, each insurance company would offer basic two-three ULIPs, providing fewer options to the customers.

The companies who had 80% of their business coming from linked business will now be focusing more on traditional products. Now the product mix of ULIP Vs non-ULIP, will be reduced to 50:50 from 70:30.

Buyers Are The Winner

Of course, there are enough reasons to be unhappy for the insurers but customer have lot of reason to celebrate as the products will be much more attractive now—charges will reduce and returns will increase. Insurers will now have to be on their toes to hear out their customer and help immediately.

Now, if you want to understand the nuances of different types of policies and its price, feel free to seek the help of InsuranceMall to select the right products based on your need.

InsuranceMall is the leading and first online insurance broker in India. With the motto to make our customer delighted and proud about their decisions, we’re always there to help them with best possible policy.

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