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How PoSP Model Can Foster Insurance Growth Near & Far across India

Submitted by admin on March 16th, 2024

How PoSP Model Can Foster Insurance Growth Near & Far across India

The PoSP model is extremely powerful. On the strength of technological progress and regulatory structure, the model brings a unique opportunity to tap into the untouched segments of the population and boost higher insurance purchases.

Insurance Industry in India: Problems & Solutions

The current insurance industry of India has enough potential to grow bigger and stronger, with an accelerating swell in the middle-class segment projected to welcome 14 million people by 2030. However, India’s insurance industry shows a slow penetration rate compared to the 7 percent global average rate. To address such sluggish growth, some immediate steps are needed to increase awareness, create new distribution channels, and improve customer trust in the entire system.

According to a renowned industry expert, about 80% of policy buyers come from the Tier-II and Tier-III cities. These people are internet-savvy and hence, search and research online but buy insurance products offline. This demographic also trusts agents whom they have known for a long time.

IRDAL, introduced by the Point of Sales Person (PoSP), is an effective model to facilitate and accelerate penetration by reaching out to people to sell insurance products. This model nicely blends human intervention with modern technology to make insurance adoption faster, better, and more reliable for customers.

Leveraging the Power of Phygital via PoSP 

The PoSP model is based on agents’ empowerment through extensive training, excellent compensation structure, and powerful modern technology. Agents, thus empowered, can provide customized guidance and support to policy buyers, assisting in the process of informed decision-making while buying insurance.

The PoSP model, based on the seamless integration of digital tools with age-old agent networking, improves distribution efficiency and at the same time, preserves human interference in sales interaction. By enabling agents to have a wider selection of insurance products and solid information about all these, insurance companies can easily make their way to an extended demographic with diverse preferences and pockets.

It establishes and retains confidence and trust in the industry’s inner working circle. The PB Partner network has already covered 19.1K pin codes across the country. Policyholders from Tier-II and Tier-III cities constitute nearly 50 percent of the incoming insurance business.

Future Projection

The growth curve in the insurance industry is tilting towards a service-centric model. There has been an unmistakable shift towards customized service fine-tuned with individual policyholders’ personal requirements and lifestyles. Furthermore, integrating AI-driven data analysis has also made changes in risk assessment.

This evolved approach helps insurers embrace more accurate pricing strategies that will seek an optimally possible equilibrium between risk appetite and available coverage. In this context, the PoSP model will provide customers with an ideal factor salad to ensure a uniquely gratifying insurance experience for every individual.

Distribution Enhancement through Technological Integration 

The PoSP model is pivoted around technological integration for an approach towards more transparent, efficient, and personalized services. AI-supported tools including PB inspection facilitate the claim process, accelerate settlements, and reduce complexities.

Strategic partnerships with tech InsurTech organizations will enable PoSP agents to harness innovative solutions that will contribute towards extending their reach to previously virgin regions, streamline online-offline integration, and foster greater inclusivity. It will also bridge the gap between personalized service and digital convenience.