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New-age Insurance vs Traditional Insurance

Team AckoJul 22, 2021

New-age Insurance vs Traditional Insurance

Evolution is defined as a change in characteristics over successive generations. The insurance industry has also evolved and new-age insurance is on the rise. With simplicity at its core, digitization has changed the way insurers offer insurance and the way customers purchase it.

Have a look at the five points that distinguish between new-age insurers and traditional insurers.

  • Pricing

Traditional insurance has high operational costs owing to their several branches and offline strategy. New-age insurance is based on an online model that is economical and cost-effective. These companies are fully-digital, and hence their policies are less expensive as compared to their traditional counterparts.

  • Buying Process

The purchase journey in case of traditional insurance is complicated and involves a multi-step process. Customers often get confused and irritated due to the lengthy and confusing buying process. On the other hand, the buying process in case of new-age insurance is extremely simple and quick. It is similar to the buying process followed by leading E-commerce websites. Something that the users are comfortable with and used to.

  • Communication

People often perceive insurance as difficult to understand. This perception is mainly due the way the information is presented to them. Traditional insurance uses a lot of jargons while communicating features and benefits of the policies whereas new-age insurance relies on communication that is easy to read and understand.

  • Claims

An insurance company’s claims process is of utmost importance to its credibility. Policyholders often find it difficult to claim insurance as they face roadblocks throughout the insurance claims process. New-age insurance addresses this issue by providing customer-friendly and hassle-free claim settlement.

  • Paperwork

There’s a lot of paperwork in case of traditional insurance. Filling lengthy forms and keeping track of all the documentation involved seems like an added task for the customers. New-age insurance relies on a digital process that requires minimal paperwork and offers maximum convenience.

Points to Be Noted

Make sure to go through the inclusions and exclusions of your insurance policy before purchasing it. Read the terms and conditions and make an informed choice. Get your doubts cleared on call or via email with the insurance company. Reading, understanding, and buying insurance is easy, convenient, and hassle-free with Acko, the new-age insurer.

Also, read: Vehicle Scrappage Policy in India


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CIN: U66000KA2016PLC138288

IRDAI Registration No: 157

Category: Non-Life Insurance

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