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IMDR’s Journal of Management Development and Research 2022-23

turning point since it made them part of a channel that the regulator recognized and approved as a
potential growth sector.

The general growth seen by firms using an aggregation strategy is uninspiring; yet, over the previous
two years, Policybazaar saw spectacular 200%growth. Nowadays, 70% of all online sales
Policybazaar currently accounts for 70% of all Internet insurance sales. Policybazaar also dominates
the industry in the online lead generation area, where insurance aggregators offer leads to insurers,
accounting for 4 out of every 5 leads (via Internet).

Online insurance regulation
In April 2011, the Insurance Regulatory and Development Authority (IRDA) in India issued guidelines
on the distance marketing of insurance products. These guidelines applied to all non-face-to-face
methods of distributing insurance products, including telemarketing and the Internet. With the new
regulations, insurance companies are now able to provide coverage for products sold through distance
marketing without needing a physical application on hand. With these plans, the insurers must include a
transcript of verbal dialogue or an electronic record of the questions the consumer asked and the
responses they received as an attachment to the policy document.

Online life insurance growth in India
Development of online life insurance in India The general growth experienced by businesses in the
aggregation model is uninspiring, yet Policy Bazaar saw spectacular 200 percent growth over the last
two years. Policy Bazaar currently accounts for 70% of all internet insurance sales. Moreover, Policy
Bazaar dominates the industry in the online lead generation category where insurance aggregators sell
leads to insurers, claiming 4 out of every 5 leads generated online.

India Online Insurance Market Analysis
People are growing more accustomed to conducting business online as internet usage increases in India,
and the e-commerce industry in the nation is seeing a boom. A growing number of consumers are
purchasing insurance online on a daily basis. Many advantages that insurance policies purchased online
offer are fuelling the expansion of internet insurance. As more people utilize the internet and mobile
devices, their preferences are shifting since they are becoming accustomed to doing their purchase
research online. While traditional insurance purchasing is still the most popular in India, it was
discovered that internet life insurance research has been noticing an upward trend. By 2028, India's
online insurance market is anticipated to expand at a CAGR of 5%. Although having a market share of
more than 70% for traditional channels like agency and third-party distribution, buying insurance
online is becoming more and more popular. A typical internet customer is also well aware of his or her
wants and has been making informed judgments, according to research. The pandemic has forced
companies in all industries to alter the way they conduct business, and the insurance sector is no
exception. The prolonged shutdown that followed COVID-19 forced insurance companies to rely
heavily on their digital architecture for everything from marketing new policies to handling claims.
People became much more aware of the pandemic as evidenced by the fact that the sale of health
insurance has increased significantly since COVID-19.

India Online Insurance Market Recent Developments
In February 2023, State-owned general insurer New India Assurance entered the surety insurance
bonds business, becoming the second such domestic insurance company.

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