Affordability concerns and a lack of understanding about insurance products stand out as the main barriers preventing individuals from availing themselves of health and life insurance in India, as highlighted in a recent consumer insights report by insurance marketplace Policybazaar.com.

Cost and Complexity

According to the ‘How India Buys Insurance’ report, more than 40% of respondents cited high premiums as the primary deterrent for not acquiring insurance. Additionally, about 53% expressed challenges in comprehending the intricacies of insurance products and processes, leading them to forgo the idea altogether. The survey, conducted across 27 cities in India, including metros, Tier II, and Tier III cities, sheds light on the prevalent issues influencing insurance uptake among the populace.

Role of Trust

Personal recommendations from friends, family, or known agents emerged as pivotal influencers in the insurance purchase decision. Around 80% of respondents identified these recommendations as the primary factor motivating them to consider insurance. Notably, 56% attributed their decision to purchase health insurance to recommendations from friends and family, while 54% did the same for life insurance. Moreover, the survey found that 58% of respondents trusted familiar brands when purchasing health insurance, and 64% expressed a similar sentiment for life insurance. This underscores the significance of brand recognition and a strong market presence in fostering consumer trust in insurance providers.

Insights from the CEO

Sarbvir Singh, the CEO of Policybazaar, emphasized the importance of conducting detailed research encompassing Tier-I, Tier-II, and Tier-III cities to gain comprehensive insights into consumer perspectives. He expressed optimism that the findings from the research would pave the way for more tailored and consumer-centric solutions within the insurance industry.

Online Research vs. Offline Purchase

Despite a significant majority (80%) of respondents relying on online platforms for insurance-related information, over 85% ultimately chose to purchase insurance offline. The preference for offline channels, particularly through acquainted agents recommended by friends and family, highlights the enduring significance of personal connections and trust in the insurance purchasing journey.

In conclusion, addressing affordability concerns, simplifying product comprehension, and enhancing trust-building efforts are paramount for fostering greater insurance adoption across diverse segments of the Indian population.