Navigating marine-cover landscape: changing trends and preferences
Marine insurance market is undergoing signi cant transformation driven by evolving consumer preferences, emerging trends; insurers must leverage technological advancements to o er tailored solutions and enhance transparency to address evolving demands of
trThe growth of the Indian economy in the age of rising digitisation has had a visible impact on every sector. Conventional consumer-buying patterns have made way for newage behaviour shaped by online presence, which has deeply contributed to the growth ofmarine insurance. What’s signicant here is this growth is intertwined with a growing consumer anity towards online mediums.
This shift marks the advent of the digital era for a traditional business-facing sector like marine insurance. The convenience and potential for substantial cost reductions through online channels have been major drivers of this trend. Also, the increasing number of repeat customers opting for online transactions underscores a growing condence in these platforms.
Consumers have also found online claims processes to be not only streamlined but occasionally more ecient than traditional methods, bolstering trust in online transactions.
Traders and companies procuring marine insurance regularly are increasingly turning to digital aggregators or other online platforms to meet insurance needs. Online platforms also o er customers convenience, transparency, and the ability to simultaneously evaluate multiple products, empowering them to make informed decisions.
Cost savings
Our data suggests digital mediums can yield savings of up to 40% or more compared with traditional channels.
Albeit minor, there’s been a growth in the number of repeat online buyers as well, which highlights growing trust in digital channels. Those who now buy marine insurance online, in contrast to popular belief, nd greater transparency and convenience in the online claims process. This change in perspective vouches for the eciency and dependability of the digital mediums, even in primarily B2B-facing industries like marine insurance. The shift towards online purchasing could be expedited if consumers grow more accustomed to the simplied experiences provided by the channels.
The pandemic has had a substantial impact on global trade and supply chain dynamics, which has led to a 16% rise in demand for maritime cargo insurance. The outbreak has highlighted how crucial it is to use risk-mitigation techniques and all-inclusive insurance coverage to lower losses resulting from supply-chain interruptions.
A noteworthy development since the outbreak began is a signicant 60% rise in single-transportation inquiries. This demonstrates the rising demand for adaptable, short-term coverage options catering to certain shipments and transportation needs.
Here are some interesting industry trends:
With a market share of 40%, traders remain the predominant consumer base inclined towards embracing marine insurance, followed closely by manufacturers at 30%, with individuals and transporters at 8% and 22% respectively. These patterns underscore the nuanced needs and risk proles inherent in each sector. Insurers must grasp these intricate business dynamics to tailor offerings e ectively, delivering targeted solutions that adeptly address the specific demands of each market segment. To navigate the escalating intricacies of global trade and transportation, businesses seek insurance solutions characterised by enhanced exibility and agility.
Preferred sum insured
Given the diverse spectrum of cargo valuations and associated risk proles addressed under annual open policies, the prevalent sum insured typically ranges up to ₹1 crore. Household commodities commonly carry insurance coverage extending up to ₹5 lakh, while a predominant sum insured for individual transit stands at ₹25 lakh. These underscore the importance of aligning coverage with risk exposure and cargo valuation to ensure adequate safeguarding.
Mode-speci c coverage
Ninety-eight percent of consumers opt for singular transit cover for road transport, highlighting a predominant preference within the market. Also, 87% of clients exclusively seek coverage for auto transportation, underscoring the imperative for tailored solutions catering to the distinct needs of diverse transportation modes. It is incumbent upon insurers to provide specialised policies adept at mitigating specic risks linked to each mode of transport.
Complete coverage
The heightened demand observed for ITC-A (All Risk Cover) compared with ITC-B (Basic Cover) underscores a conspicuous preference among customers for a comprehensive coverage.
This signies prioritisation of risk mitigation over mere regulatory compliance, even at the expense of higher premium. Such dynamics catalyse overall market expansion.
In summary, the marine insurance market is undergoing a signicant transformation driven by evolving consumer preferences and emerging trends. Insurance rms must leverage technological advancements to o er tailored solutions and enhance transparency to address the evolving demands of their clientele e ectively.
(Sajja Praveen Chowdary is Director, PB For Business)
Those who now buy marine insurance online, in contrast to popular belief, nd greater transparency and convenience in the online claims process