In the near future, insurance companies will actively offer subscription policies to Russians, similar to the sale of video content. This forecast was given to socialbites.ca by Katrin Soomre, advisor to the general director of the Rosgosstrakh Insurance Company.
“It’s time for big players with traditional services to start offering a subscription model, among other things. Insurance companies know that sometimes selling insurance and not using it for a year can lead to regret. The customer thinks his money is wasted and does not buy a new policy. Then, by chance, an insured event occurs. Therefore, we expect a serious transformation in the insurance market in the near future. People will have the opportunity to purchase a subscription policy from any company for a month, a week, a day, or even a few hours. For example, during flight on an airplane,” said the expert.
The first advantage of the new model is accessibility. According to Soomre, it is much easier and psychologically simpler to give 200, 500 or even 1 thousand rubles a month than to give 3-6-10 thousand rubles a year. Additionally, insurance is purchased only for the required period. The consultant explained that the client did not pay for the period for which insurance was not required.
“The disadvantages of the model include the fact that the customer may forget to deactivate the subscription and pay for a period of time that he no longer needs. Additionally, from our observations, some services can make disabling the service extremely difficult,” Soomre said.
He gave three recommendations to Russians who want to get an insurance policy through subscription.
“First of all, you need to make sure that the service warns you about withdrawals in advance. If it doesn’t, it’s better to set a reminder on your phone a day or two in advance and think about whether you need to pay for the next period. It’s also worth checking in advance how easy it is to unsubscribe. If this is not easy, you can contact the support service. Or choose another service,” Soomre explained.
He also advised calculating whether the overpayment for a subscription is large when paying monthly. The expert concluded that it may be more expensive than an annual subscription, but the overpayment should not be significant and should not exceed 5-10% of the annual payment.
According to a report by J’son & Partners Consult, the ecosystem subscription market in 2022 grew by 24% compared to 2021, reaching 58.1 billion rubles. Last year, the total number of subscribers increased by 36%, reaching 42.45 million Russians. The average number of subscriptions per user in Russia increased from 1.1 in 2021 to 1.5 in 2023. As of March 2023, 53.5% of megacity residents aged 18-55 have at least one subscription of this type. Basically, subscriptions are arranged for the consumption of video content, music and literature.
Previously happened It is known that Russians took out insurance in 2023.
Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.