Reported by: banking|Updated: June 19, 2019
Though wedding insurance was available for Indian consumers for some years, insurance companies had restricted its marketing to high-profile customers. These companies faced challenges like people’s traditional mindset about wedding ceremonies, unpopularity of the product and old distribution channels used by the general insurance companies. A report in the June issue of Banking Frontiers says the growing wedding market has now created opportunities for insurance companies. The market is valued at an estimated $50 billion, which is second only to the United States and it is predicted to grow at 20-25% annually for the next few years.
Sanjay Datta, chief – Underwriting & Claims at ICICI Lombard General Insurance explained that with wedding budget intact but with motivations no longer the same, destination weddings are the new hit among the millennials. Says he: “Destination weddings and theme-based weddings are popular among millennials. Nowadays, weddings involve lot of ceremonies, and these ceremonies are spread across different locations. There is cost, planning and resources involved in the weddings, so weddings must be backed by insurance. We get majority of our business from the metro cities like Mumbai and destination wedding locations like Jaipur, Udaipur, etc. Wedding insurance is useful when it comes to cancellation of weddings, loss of baggage, security and safety of the guests. We also provide coverage to the celebrities performing during the wedding functions.”
Datta adds that the company’s wedding insurance products start at Rs 200,000. The company has tied up with wedding planners and event managers for promotion of the wedding insurance. “Safety, security and cost are important tools for wedding insurance. Each wedding insurance policy is customized based on the needs and requirements of our customers,” adds Datta.