nsurance Regulatory and Development Authority of India (IRDAI) in its conti...
Online term plans are gaining immense popularity among Indian consumers. Net savvy customers prefer to buy term plan online firstly because of the low premiums and also because of the hassle-free and convenient process. Term insurance is a simple and easy to understand product with high coverage benefit at a low premium. Since no agent is involved in the sale of an online term plan, companies are able to save on various costs and hence these are priced atleast 30% lower than the offline term plans.
Warren Buffet led Berkshire Insurance, which started operations in March 2011 by selling motor insurance policies of Bajaj Allianz General Insurance Company, is now looking to enter the life insurance space with an online term plan.
Arun Balakrishnan, CEO, Berkshire Insurance said that they have a corporate agency licence with Bajaj Allianz Life, and in the coming six months, they will launch an online term insurance product.
“We would give some inputs to the underwriting team, and these might be incorporated. Whether it would still be an exclusive product to be sold by Berkshire remains to be seen,” he added.
Berkshire India is a majority owned non-direct subsidiary of Berkshire Hathaway Inc incorporated in India. The company is a licensed corporate agent of Bajaj Allianz General Insurance Company and sells their products directly through the internet on BerkshireInsurance.com.
Berkshire Insurance started operations in March 2011, and offered its customers a unique opportunity to meet Warren Buffet on his visit to India. According to Arun Balakrishnan, their real launch happened in August when the site was revamped along with increased marketing activity. Since then their monthly sales figures have crossed the peak of 300 policies.
The company recently added travel insurance plans to extend its product range. With the addition of an online term plan, the company hopes to take a plunge into the life insurance space as well.