“Today’s working population will be tomorrow’s large, retired population. And it is imperative to register the urgency to plan for our retirement years as India manages its aging population and embraces longer lifespans,” Prashant Tripathy, MD of Max Life Insurance underscores the value of planning early retirement at the launch of the India Retirement Index Survey (IRIS).
The study reveals that millennials, who were surveyed for the first time, are better prepared for retirement than other age brackets. “With a retirement index of 48 points, millennials surpass others in retirement preparedness, backed by heightened awareness of financial products at 54 points,” says the report.
Tripathy attributes this result to the growing digital literacy in India amongst millennials and easy accessibility to the internet. “Level of awareness, exposure to digital mediums, and accessibility to a wider network of advisors is higher in millennials,” he says.
More than 2/3rd feel secure with current savings/investments for retirement—significantly higher than other age brackets, as per the report.
“At the same time,” Tripathy opines, “They are also value seekers; they will compare and research thoroughly on the basis on which they will make the investments.”
Digital revolution
In a world where volatility, uncertainty, and ambiguity are only one knockaway, every industry must shape itself to be agile, continuously evolving and embracing changes.
The insurance industry is no exception, although it has been following the traditional business model for as long as one can remember, it is now rebooting itself profoundly to incorporate the latest technological advancements.
With respect to new customers, nearly 22% of customers of Max Life are generated through digital mediums – either directly through the company’s website or aggregators' website. “These are sale-sourced wherein customers come with the intention to buy,” says Tripathy.
On the customer service front, the insurance company saw 85% of customer service transactions happening digitally in a particular month. With an aggressive approach towards digitising, the insurance company is rendering the majority of the service requests to be solved online.
“As we go along, we are making robust investments in that area with respect to putting out solutions and easing it for customers while looking at their journey. We intend to simplify it for different cohorts and we are close to 90% achieving it,” shares Tripathy.
However, he acknowledges that from a service perspective, people are yet to wholly absorb digital solutions while investing in life insurance. “Nonetheless, overall footfalls have been coming down which means that the digital option is becoming popular,” he adds.
