The traditional axiom "insurance is sold, not bought" has long guided insurance sales strategies, rooted in the belief that insurance products require active selling due to their complexity. However, the rise of digital insurance and InsurTech is reshaping consumer behavior and challenging this conventional wisdom. As the insurance industry evolves through digital transformation, it's worth examining whether this adage still holds true.

Traditionally, insurance has been promoted through direct sales efforts, including agents and brokers who educate potential customers on the benefits and importance of various policies. This approach has been necessary due to the inherent complexity of insurance products and consumers' general reluctance to think about future negative events. The personal touch of agents and detailed consultations have been key in translating complex insurance jargon into understandable terms and aligning product offerings with individual needs.

The digital transformation in insurance has introduced significant changes. Digital insurance platforms and InsurTech startups, powered by data analytics, artificial intelligence, and machine learning, offer a more intuitive and user-friendly approach to purchasing insurance. These online insurance platforms provide automated recommendations, instant price comparisons, and real-time risk assessments, enhancing engagement and transparency.

Younger demographics, particularly Millennials and Gen Z, who are digital natives, show a greater preference for online transactions, including insurance purchases. They value speed, convenience, and control over the insurance purchasing process. This shift is evident in the growing popularity of usage-based and on-demand insurance products tailored to modern consumers' desire for flexibility and customisation.

While the idea that insurance is sold, not bought, may still apply to certain segments and products like complex life insurance policies, long-term health insurance, and substantial commercial policies, the role of insurance agents is evolving. The value of professional advice and personalised service remains significant but is now complemented by digital tools and platforms.

In conclusion, the digital transformation of the insurance industry is empowering consumers to make more independent purchase decisions. Insurance is increasingly both sold and bought, with the balance depending on the product complexity and consumer preferences. As technology continues to evolve, the insurance industry must adapt to these changes, finding new ways to engage with today's digital-first consumers.

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