Insurance Report India ~ We have seen a very reluctant kind of discussions around insurance. In our country, there was a general perception that insurance was actually a wasteful thing. But education has made things better and now there is a change in this perception.
It is also clear that only a few possess significant knowledge about insurance and it’s pros and cons. A study of consumer insights by Policybazaar.com shows that people rely mostly on recommendations to get an insurance. Before buying insurance, they take advice of people around.
The report titled ‘How India Buys Insurance’ talks about this issue. It’s approach is descriptive and depth. It provides a total view of consumer awareness, needs and frictions when it comes to the purchase of health and life insurance, and highlights that it is important to build trust at every touchpoint of the consumer journey.
The reports says that personal recommendations are the top criteria for selecting and insurance. Approximately 80% of the respondents have expressed these views. Trigger for purchasing health insurance is also from friends and family. 56% of the respondents believe in friends and family recommendation on this criteria. For Life insurance, this number is around 54%.
One of the key factors to select an insurance is familiarity with brand. There are issues of affordability and lack of product understanding. Many a people still do not understand what is covered in health insurance and what is not. This is just the same with accidental insurance as well.
This indicates a clear need for education in the category along with simpler, more affordable options. The earlier this education starts, the easier it will be to hit the message home.
Insurance as a category lacks instant gratification and everything boils down to customer experience. In this research as well, consumers indicated that tedious paperwork, complex processes and the fear of claim rejection makes their faith in insurance weak. It is imperative for the industry to ensure seamless customer experience and technology can play a pivotal role in this process.
Sarbvir Singh, CEO, Policybazaar, said about this report, “Policybazaar’s efforts to maximize insurance penetration are in alignment with the IRDAI’s vision of a fully insured India. In order to achieve that objective, we need to deeply understand the changing consumer needs. With a detailed series of face-to-face interactions, we have gone beyond tier-I and tier-II cities in this research and also explored the perspectives of tier-III India. We hope that the insights from our research will pave the way for more relevant and consumer-centric solutions from the insurance industry.”
Insurance Report India