Online Insurance Will Become a Daily Practice
Askhat Otegenov, Interteach Director of Sales and Business Development, answers the questions of Petroleum Journal:
– Mr. Otegenov, why do customers need online insurance?
– Starting from January 1, 2019, compulsory insurance is carried out only online on the Internet resources of insurance companies.
Unlike the classic form, online insurance has undeniable advantages in terms of security and convenience.
According to the Forrester Research Agency, every fourth Briton acquires an insurance policy on the Internet, in Germany – every third resident. On average, 40% of Europeans use online insurance without leaving home. In Kazakhstan, this market is just beginning to develop. Internet sales are gaining momentum, about 50% of the gross non-cash turnover on bank cards in Kazakhstan are online payments, which is 27% more compared to last year.
The benefits of online insurance are obvious:
- Convenience. The system of issuing an electronic policy of compulsory car insurance, first of all, is convenient for motorists, previously forced to carry a paper copy of the contract. According to the new rules, the police will check the availability of insurance bysending a request to in a single insurance database. All information on insurance policies is stored in the information system of the insurance company and the Single Insurance Database. It is also worth noting that the paper car insurance policy, issued before January 1, 2019, will be valid until the end of the contract. When purchasing a tourist package in the field of outbound tourism, the tour operator is obliged to provide the tourist with an insurance policy.
- Speed of registration. You can apply for a policy via the Internet around the clock, and it's quick and easy, simply use a payment card. It is not necessary to spend time on a visit to the insurer, you just need to go online – and in a short time you can visit the virtual offices of different insurance companies. On the Interteach website in a few clicks, you complete your electronic insurance policy by completing the form and paying by credit card. Then you receive an SMS-notification about the policy purchase with a unique number assigned in the Single Insurance Database (SID) and confirmation of purchase – by e-mail. When taking out the policy online on the Interteach website, you can get a 10% discount.
- The absence of intermediaries. One of the advantages of online insurance is the absence of intermediaries in the purchase. This means direct contact without an agent, which is convenient for many customers and insurance companies.
- Security. Fraudulent actions on forgery of insurance policies are excluded. When choosing online insurance in trusted companies, you can be sure that third parties will not have access to your personal data.
In the future services of insurance companies regarding online insurance include the possibility to change, renew or terminate the insurance contract based on registered phone number or e-mail. In case of an insured event, you can submit an application for an insurance benefit through the website or mobile application of the insurance company, attaching scanned documents.
– What are the benefits for insurers?
– There are also positive aspects for insurers. Offering online insurance, insurers significantly save their resources (time and money) for the selection and training of agents, rental of office space and organization of the workflow, the production of paper policies. The savings can be directed to the development of IT infrastructure to expand the service and improve the quality of services in the field of online insurance, for critical and information work, which is necessary due to the lack of agents who could convey information to each client.
– What problems can arise in the formation of this direction?
– When implementing any innovation on such a scale, problems which are common for both clients and insurers are inevitable: integration of the SID with state authorities, with the payment system, technical difficulties. It takes time for the process of online insurance policies registration to become smooth and quick. Despite the growing popularity of online insurance, not allpeople trust it, some customers are skeptical and still prefer personal communication with a manager in the office or an agent, which makes it possible to verify his competence while asking for policies on paper.
Not all population of Kazakhstan has payment cards and Internet access, and it also creates difficulties.
Insurance is a special financial product, which not everyone can understand on their own. Therefore, the development of online insurance is moving along the path "from simple to complex" – in the initial stages, typical products such as compulsory insurance are sold. To implement more complex programs it takes time and work to advise and increase awareness of broad layers of the population. Kazakhstani insurers are actively seeking to introduce online insurance for different products.
Interteach provides the possibility to use any available communication channels for processing insurance policies. The round-the-clock dispatching service consults clients on all questions.
– What recommendations would you give to clients regarding online insurance?
- It is recommended to choose a reliable insurance company with a good reputation and buy a policy only on the official website of the company.
- Keep in mind that the purchase online, as well as the purchase of a policy in the office, requires non-residents to provide the necessary documents (identity document, driver's license, technical certificate for vehicles).
- Carefully read the terms of the insurance contract. If details were missed in case of an insured event, your expectations might not correspond to reality. When settling losses, the insurer is guided by the single rules of insurance.
- When choosing a company, pay attention to the simplicity and convenience of the process of registration of the insurance policy online. All steps should be accessible and understandable.
- Payment terms are also important for the client. Some companies offer terms less than prescribed by law (up to 15 working days). Interteach issues payments within 7-10 working days.
Experts believe that online insurance is the future. We agree with that statement.