Three quarters of insurance sales influenced by digital channels by 2020

Three in every four insurance policies sold by 2020 will be influenced by digitals channels, according to a study by Google and the Boston Consulting Group (BCG).

The report, which was produced for the Indian market, said the exploding popularity of smartphone and the Internet had become a core part of life for many consumers across the globe. As a result of this increased digitisation the report claimed that insurance sales from online channels will multiply by 20 by 2020.

"As insurers seek new avenues to grow profitably, they have a unique opportunity to embrace and benefit from the digital wave, which also addresses many key issues that plague the offline world today.

“We estimate that digital adoption could result in potential savings of 15-20% of total costs in the case of life insurance and 20-30% in the case of non life, thereby showing the path towards profitability for the industry", said Alpesh Shah, a BCG senior partner and the author of the report. 

The research also found that two in every three consumers will change their mind about a brand or product during the course of researching a purchase and the Internet allowed companies to leverage pull-based propositions around insurance products.