I have seen balance sheet of LIC. So atleast in LIC case, I can say that they dont invest totally in fixed instruments. Almost 17% is into equity also. Also since this business is push business and not a pull business…so no.matter what technology comes, whether aggregators, Apps, direct purchase from website, it will remain a Push based business and hence agency model is backbone of insurance sales, which is very costly and commission is the highest cost for the companies, which will always be there. Internet has come in US and western world from last 50-60 years, but even there, today also, policies are sold and never bought. But the positive thing there is people are very much aware of insurance. In India, we are still making movies like Toilet -ek Prem Katha, to make people aware of where they should do their nature-calls…so insurance awareness is very very faar away.
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