According to a survey conducted by Policybazaar and reported by The Economic Times, a significant number of Indians rely on personal recommendations from friends, family, or known agents when purchasing insurance. The survey, which included 3,300 respondents from 27 cities across India, found that 80% of those surveyed preferred this method. Additionally, 58% stated that brand familiarity played a crucial role in their decision-making process.
The survey also shed light on the reasons why some consumers hesitate to buy insurance products. Approximately 40% of the respondents cited high premiums as the main deterrent for not purchasing health and life insurance. Additionally, 53% found insurance products difficult to understand, indicating a need for greater clarity and transparency in the industry.
India currently has one of the lowest insurance penetration levels in the world, as highlighted by Sarbvir Singh, CEO of Policybazaar. He emphasized the importance of building trust at every stage of the consumer journey to encourage greater adoption of insurance products. To address this issue, the report suggests several strategies, including the development of simpler and more affordable insurance products, the increased use of technology throughout the insurance process, and early education on the importance of insurance.
By making insurance products more accessible and understandable, insurance providers can overcome the barriers that deter potential customers. Simplifying the language and terms used in insurance policies, as well as offering more affordable options, can help attract a larger customer base. Additionally, embracing technology can streamline the insurance process, making it more efficient and convenient for consumers.
Furthermore, the report emphasizes the need for early education on the importance of insurance. By raising awareness about the benefits and necessity of insurance coverage from a young age, individuals can develop a better understanding of its value and make informed decisions when it comes to purchasing insurance products.
In conclusion, the survey conducted by Policybazaar highlights the reliance on personal recommendations and brand familiarity among Indians when purchasing insurance. To increase insurance penetration in India, the report suggests simplifying products, leveraging technology, and providing early education on the significance of insurance. By implementing these strategies, the insurance industry can build trust, improve accessibility, and ultimately encourage more individuals to protect themselves and their families through insurance coverage.
