Flexible Insurance Products All Set To Be The Game Changers

Millennials, also known as Generation Y, currently make up around 34 per cent of the Indian population i.e., roughly 440 million individuals, according to a Deloitte report. Born in the epoch of technological advancement, this generation is characterized by a high disposable income and tech-savviness. As opposed to previous generations that believed in ownership, millennials are moving away from buying homes and owning vehicles. Renting and sharing are widely preferred. According to a poll conducted by The Entrepreneur in 2017, 47% of millennials said that they would prefer renting if that meant they could afford small luxuries like eating out and enjoying the movies every once in a while. A glance at social media is telling of the millennial collect moments, not things approach to life. 

Generation Y is a generation consumed by wanderlust; a desire that has found its business model in home-sharing. Couchsurfing and co-living are increasingly popular trends, allowing millennials to drift away from the typical hotel experience and feel at home as they indulge in their favourite pastime – travel. Additionally, such services appeal to the millennials’ frugal tastes. By the same token, car ownership among millennials is also witnessing a decline and ride-sharing services such as Uber are gaining acceptance. Millennials worldwide are questioning the need for owning a vehicle. The reason is as much the concept of ownership as it is economics. Car-pooling and ride sharing are comparatively cheaper than owning and maintaining a personal vehicle. Moreover, millennials are tech-savvy and more importantly, tech-dependent; the natural sequel is absolute faith in the power of digital solutions. 

In India, millennials account for nearly half the working-age populace, naturally driving its consumer market. With easily accessible information, millennials today are more health-conscious than any other generation. The effect of their lifestyle and preferences is reflected in the insurance industry. According to a 2019 study by Max Life, only one in five Indian millennials have a proper term insurance. Survey after survey has revealed that millennials prefer financial products with a low-ticket size, that are easy to understand and aligned to their lifestyle choices. This is why small-ticket lifestyle insurance is finding huge traction among millennials. Ola has come up with an insurance policy that covers losses that may occur during cab rides. For a premium as low as Re. 1 per ride, a coverage of up to Rs. 5 lakh can be availed.

From traditional firms to new-age insurance start ups, insurance firms are offering innovative and context-based products that offer cover from an hour to a year at prices as low as Rs. 10 to Rs. 499. Car rental insurance on an hourly basis, laptop insurance and mobile insurance are a few examples of bite-size insurance products that are becoming popular. Besides these, the new-age firms also offer coverage against ligament tears and minor fractures and also no-frills insurance cover that provides protection against mammogram/Pap smear.

Well, from renter's insurance to a monsoon health cover to even insuring a bicycle or a backpack, today's millennials have a lot of insurance products to choose from that offer the flexibility they desire and cover their lifestyle needs. 

The author is Co founder and Head, Networks, Symbo Insurance