Indian consumer can’t be bothered with going outside and buying anymore. Yes, the statement I am presenting bold. But, it’s a lot closer to reality, isn’t it. Whether it’s the matter of simple household products like milk or nuanced services like Insurance, people are now more willing to buy them both online.
And the government is willing to cater to this need. Therefore, IRDA has introduced regulations for ISNP or Insurance Self network platform. Their purpose is to regulate e commerce in insurance domain. In this article, we are going to touch upon the significance of ISNP or E commerce of insurance products.
ISNP is just the next step
if you think that ISNP is just government’s first attempt to take insurance services online, you’d be wrong. There also exist Insurance Web Aggregators whose services are somewhat similar to an ISNP. However, unlike insurance self network platform, no one from the insurance domain can become an Insurance web aggregator. It’s only for independent entrepreneurs who possess knowledge of the insurance market and can provide insurance comparing facilities to the customers.
However, once the government saw the potential an online mode can bring to insurance sector, they came up with ISNP as a next step. With its introduction, all the insurance intermediaries, insurance companies and corporate agencies can now establish online platforms to solicit insurance services.
E Commerce approach can accelerate insurance processing
One of the detrimental factors that have stopped the insurance domain from achieving what it deserves is time, or more of it. What we mean to say is most insurance proceedings takes a lot longer than they are supposed. The chasm of time between when a client proposes to get an insurance policy and when he buys it is high. Furthermore, when the time of make the claims arrives, this chasm widens even more.
However, with the introduction of insurance e commerce because of Insurance Self Network Platform, processing time has reduced. It has accelerated the process of insurance services – granting more satisfaction to the customers – speeding up the growth of insurance sector.
Insurance intermediaries need innovation
Insurance intermediaries, whether they are brokers, marketing firms or repositories, have always been complacent about how they provide their services. The reliance on their comfort zone has alienated customers who live in remote regions. Most remote citizens of India aren’t aware of insurance services. To this day, they are relying brick and mortar insurance centres with probably no approval from the IRDA.
With the introduction of ISNP, insurance intermediaries are now forced to innovate. Now they face a challenge to cover most regions of India to dispense their services. They finally have a customer base in the remotest corners of India and India is now thankful for it.
Also Read: Here is what you need to know about TEC certification
With the introduction of ISNP, IRDA has revealed room to grow
Even though we are riding high the wave of digitization and e commerce, the truth is when it comes to government regulations, we are still novices. Yes, India has made many strides in the digital arena over the last few years. However, as far as regulations are concerned, we still haven’t updated them. Same goes for Insurance Regulatory Development Authority of India. The introduction of ISNP has revealed that there is a lot more room for growth within the regulatory authority. A major part of it is the need to make the regulations more flexible while the eligibility criteria more stringent.
Conclusion
Insurance Self Network Platform is India’s answer to introduce E-commerce element to the insurance sector. It has paved the way for insurance domain’s growth, has revealed to need the introduce flexible regulations and has forced the insurance intermediaries to innovate. Don’t deny these signs when choosing an IRDA license.
Go beyond what you’re capable of. The online venue to solicit your insurance services is now open. You better take advantage of it.