IMPACT OF DIGITALISATION ON INSURANCE BUSINESS AMONG POLICYHOLDERS: A CASE STUDY ON OTTAPALAM MUNICIPALITY

Abstract

Purpose: One of the most innovations in the insurance business is the introduction of e-insurance. The study has been conducted to analyze the usage pattern of e-insurance among policyholders, especially life insurance policyholders.

Methodology: Percentage Analysis was used for studying the demographic profile of policyholders. Chi-square Test was used to study the goodness of fit between gender and satisfaction level towards e-Insurance. Co-efficient of correlation was calculated to analyze the relationship between age and the number of e-insurance policies purchased. The ratings of policyholders were done using the Weighted Average Score method. The effectiveness of e-insurance facilities was studied by using hypothesis testing.

Findings: As a result of the analysis conducted it was revealed that there has been a significant relationship between gender and satisfaction level of e-Insurance facilities. As per the result of the hypothesis analysis, it can be concluded that e-Insurance was effective.

Research Implications: Effective promotional activities should be conducted by insurance companies to make e-insurance popular. Internet connection should be made available to policyholders at concessional rates. Frequent meetings should be arranged with policyholders to make them aware of the facility. Banc assurance will be the most important channel for insurers to rapidly acquire new customers.

Originality: In India, the concept of Bancassurance and E-insurance is just an emerging package fulfilling both banking and insurance needs. High fixed costs in retail branches can be minimized by introducing this, as it improves productivity and economies of scale. The study proved that there is a significant difference in the purchasing pattern of policyholders as a result of e-insurance and the number of purchases increased as a result of the adoption of the e-insurance facility.