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Portable and borderless protection for globally mobile Indians is set to become a key theme for the insurance industry over the next decade, as an increasing cohort of customers seek coverage that can travel with them across geographies, Sameer Yogishwar, Chief Operating Officer, HDFC Life, said.
"Finally, we are also seeing a rising cohort of globally mobile Indians who need portable, borderless protection that travels with them across geographies. I do strongly believe that building for that mobility will also be a defining theme of the next decade," Yogishwar said. He said changing customer needs have made life insurance products more need-based and customisable, although customer behaviour continues to be influenced by various factors. "With evolving customer needs, life insurance products have become more need-based and can be customized as per one's requirements. Customer behaviour can be influenced by various factors but at the same time one needs to remember that one size doesn't fit all," he said. Yogishwar said the COVID-19 pandemic increased awareness among customers about the benefits and need for term insurance. "During COVID we saw customers become more aware of the benefits and the need for term plans. With the GST exemption, Term plans have once again gained more traction as affordability has increased," he said. He said customers are also focusing on wealth creation and goal-based savings through savings and investment products. "There is also focus on wealth creation/goal-based savings through savings and investment products," Yogishwar said. On guaranteed savings products, he said such long-term investment products are designed to ensure that policyholders remain unaffected by external volatility while pursuing their financial goals. "The long-term investment products such as guaranteed savings plans are designed to ensure that policyholders remain unaffected despite external volatility. These products give you the guarantee that your long-term goal will be fulfilled no matter what," he said. Yogishwar said global uncertainty could increase the relevance of guaranteed, long-duration products for customers. "As the world becomes more volatile and unpredictable, guaranteed, long-duration products will increasingly be seen not just as savings instruments but as personal hedges against global uncertainty, much like gold has traditionally been," he said. On India's insurance protection gap, Yogishwar said insurance penetration remains at approximately 3.7%, compared with the global average of around 7%. He said life insurance had historically been purchased primarily as a tax-saving tool, while its role as a financial safety net for families was not adequately appreciated. He said awareness, accessibility and affordability would be important in narrowing the protection gap. "Looking ahead, I see the protection gap closing not through a single big push, but through insurance becoming invisible -- embedded seamlessly into everyday financial moments like salary credit, home loans, or UPI transactions," Yogishwar said. He added that initiatives such as Bima Sugam and Bima Vahak, along with insurer-led innovation, could provide the infrastructure needed to expand insurance coverage. Yogishwar's comments point to a shift in the way insurers may need to approach customers whose financial and personal circumstances increasingly span multiple geographies, with portability becoming an important consideration in designing protection solutions. (ANI)
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