Insurance tech and digital insurance platforms are likely to be compelled into recalibrating their life insurance products, overhauling board structures and rethinking their sales approach amid a push by the regulator to prevent misselling of life insurance products. Insurance unicorn Acko has already taken the step and announced commitment to “pure protection” to its insurance customers. As a part of this initiative, the company will disassociate insurance from investment. For context, a large part of India’s life insurance market is mixed insurance with investment products such as unit-linked insurance plans (ULIPs) and endowment plans. Pure insurance plans make up a fraction of the market. While these mixed products promise hefty returns to the consumers, it often lacks transparency and higher premiums —- which alters the idea of having an adequate life cover. Speaking on this, Acko founder Varun Dua said, “Investment-linked insurance products break that logic. They lure you with the promise of ‘getting something back’. And because we’re so enamoured by the idea of getting something, we find ourselves paying for nothing. Inflated premiums, inadequate cover and investment ‘returns’ that an FD would outperform.” Acko has decided to not mix insurance with investment to avoid alteration of protection “with… Read MoreInc42 Media
