Impact of Demonetization on Indian Insurance Market

Subir Mukherjee, Founder, GIBL
Monday, January 30, 2017
Subir Mukherjee, Founder, GIBL
Headquartered in Kolkata, Greenlife Insurance Broking Limited (GIBL) is an online insurance marketplace that facilitates consumers with effortless search, compare, purchase and renewal of general insurance policies from all the leading insurance companies in India.

Demonetization, in a bid to curb black money which is one of the main constraints on the progress of strengthening Indian economy, has taken the entire country by storm. To get billions of unaccounted cash back and to trace out the true source of income of people, the decision of removing currencies with high denominations from circulation was taken. It is undeniable that this sudden act of demonetization has an impact on all industries, and Indian insurance market has its fair share as well. With the advent of fintech ecosystem, Indian insurance tech space has been coming off age over the past few years like other fintech verticals. The new age online insurance portals are easing out the traditional cumbersome process of purchase and renewal of insurance policies. In the aftermath of demonetization, online transactions in Indian insurance market are expected to go mainstream. Here are some consequences of demonetization that Indian insurance industry is most likely to face.

Boost in Online Cashless Premium Payment

As soon as the demonetization came into effect, common mass in India hopped a step closer to cashless transactions. Scarcity of cash and the ordeal of braving interminable queues in front of ATMs and banks have already forced people to resort to plastic money. Usage of debit and credit cards, along with net banking are becoming increasingly popular even among older consumers. Demonetization has proved to be the next big thing after UPI was introduced in last April in Indian economy.

To leverage this change and changing mindset of Indian insurance policyholders, portals of Insurance company, aggregator and brokers like GIBL.IN are also being proactive in ensuring that their customers' online payment for purchase and renewal of insurance plans are fully safe and secured. Incorporation of SSL certificate will be a more widespread practice among online insurance business owners in coming years.

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