With its latest survey, InsuranceDekho throws insights into the insurance buying preferences and consumer behaviours according to age, gender, occupation, location, preferences, and risk factors among others
March 08, 2022, New Delhi: InsuranceDekho, one of the leading Indian insur-tech player recently conducted a survey among insurance buyers across the country to gauge the various factors influencing their insurance buying decision. The company released its findings through a survey report.
The survey was conducted among 1266 random insurance buyers across the country during January’22. 67.2 % of those surveyed had bought a policy less than a month ago. 33.7% of respondents were from metro cities indicating higher insurance penetration in the top metros compared to other regions in the country.
90.8% of respondents were males indicating that while women may influence the insurance buying decision but the final purchase is made by the male head of the family. 8.8% of respondents were female and the remaining 0.4% of respondents didn’t identify with either gender.
The survey findings reveal that the majority of the insurance mandate lies with the mid-age people followed by other age groups – 37.4% (age group 26-35 years) followed by 25.6% (age group upto 25 years), 16% (age group 46+ years), and 21% ( age group 36-45 years).
The survey respondents consisted of 41.2% salaried people, 28.8% self-employed/ business owners, 15.6% students, 9.6% professionals and the rest were retired.
Following the survey, InsuranceDekho plans to further scale up its various awareness campaigns about insurance to build a secure and better future for all genders and age groups.
Despite recent growth, insurance in India continues to have a low penetration rate as compared to other countries, especially when it comes to women. The survey explored underlying trends in customer awareness levels and their significance on insurers.
Despite the increased digital penetration, offline agents continue to be the dominant channel for users to buy insurance with 39.6% of users buying insurance from them. Online insurance sellers (e.g. InsuranceDekho.com, PolicyBazaar.com) are the second most preferred channel with a 32.6% share. Insurer’s direct website came distant 3rd at 15.6% and direct insurance company agents came last at 12% share.
Among the key influencing factors for users to choose a particular channel, 32.5% of users look for references for ‘from where to buy’, insurer and type of policy before buying insurance while 25% of users bought insurance based on the insurer brand image.
Indian insurance consumers are a vocal lot with the majority admitting to recommend policies to others if they are satisfied with the product. Customers often speak to multiple parties, look through online information sources to understand the various products, and then shortlist a few desirable brands and policies before buying.
48.2% considered insurance coverage to be the most important factor in their buying decision. If the coverage is good, then the probability of buying an insurance policy is also high. 13.5% of consumers consider a low insurance premium before investing in an insurance policy followed by 9.8% whose analysis involved risk and 9.7% check for returns before any final commitment.
Ankit Agrawal, Founder of InsuranceDekho said: “This survey gives us in-depth insights into the consumer behaviour when it comes to the Indian insurance purchase decision. These findings not only help in understanding our customers better and planning accordingly but also assist in understanding the effect of the pandemic on the insurance coverage, and where we are lacking in terms of creating awareness among people and getting them suitably insured. The survey is not just limited to consumer behaviour, it tells a lot if we dig deeper.
The findings of InsuranceDekho also state the reasons behind the mindset of people when it comes to investing in an insurance policy. According to the findings, 62.2 % bought insurance policies due to Risk coverage, and the rest invested for investment purposes, tax benefits, and even for pension schemes.
The insurance industry witnessed a radical shift in customers’ needs, behaviour, and expectations during the pandemic alongside a shift to digital. The sector certainly matured and collectively held its ground in 2021, and it is preparing well to make 2022 another differentiated year. So, what would the next year be like? 2022, will witness insurers focusing on these changing customer behaviours to play an expanded role – from payer to a caring partner to preventer.