Regardless of the tremendous losses caused to home and property due to natural disasters, like the latest floods in Kerala, there is few takers for home insurance from India. Home insurance accounts for less than 1 percent the premium received by the insurance agencies in the country. According to senior business officials, lack of consciousness apart, supply side constraints, also, have influenced offtake for these products. Whenever there’s such a natural disaster of such magnitude, then we unexpectedly see a surge in questions for products.
Nevertheless, the attention dies down soon and hardly any of it translates into sale, Amit Bhandari, Magma HDI General Insurance, Chief Technical Officer, told BusinessLine. A most of the home insurance providers offered in the marketplace comes as bundled supplies along with a mortgage loan, and is a push item as opposed to a pull one’. The little ticket dimensions of products also gives very little incentive to insurers to come up along with advanced catering to the needs of the segment. Distribution is also a significant roadblock. We’re, in actuality, working on the way to make the item more accessible through different channels, including bancassurance.
He said. With regards to retail insurance, it’s still life, health and motor which dominate the space. The penetration of home insurance depends on the value of the asset, said Sukhesh Bhave, Head – SBI General Insurance, Accident and Health Claims. Potential for expansion .
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