Insurance Outlook: Volume 11

The research focuses on the responses received from 1000+ people on their behaviours for not buying Health and Life insurance despite multiple enquiries from multiple sources. The report also uncovers sources of enquiries and the affinity of people towards them. This report broadly explores:

• Proportions of enquiries on various touchpoints
• Likelihood of approaching the touchpoint in the future
• Reasons for not buying Health and Life insurance despite enquires

Approximately 3/4th of those who enquire about Health and Life Insurance from multiple touchpoints don't purchase them:

People have various beliefs and apprehensions about buying Health and Life Insurance. This is largely based on 2 aspects. 

1. Lack of correct information and its source
2. Their observations of their surroundings

People approach multiple touchpoints to get information regarding Health and Life Insurance. This is largely done to understand the category and offerings. While both genders actively seek information through various channels, a significant gender gap emerges when it comes to conversion.

A worrying 85% of women who inquire about health insurance drop off before purchasing, compared to 77% of men. This percentage increases even higher for Life Insurance, where 80% of females leave the Life Insurance journey mid-way post enquiry compared to only 69% of males. In more than 60% of cases, people approach more than one touchpoint for enquiries. The complexities of these categories and long-term investment make people apprehensive about purchasing instantly and enquire from multiple sources. The first level of enquiries is always done with the immediate social circle and then moves to other touchpoints.

Online channels like websites are preferred by Tier I cities, with 65% and 43% for Health and Life Insurance inquiries, respectively. On the contrary, the preference to visit a physical branch for Health Insurance enquiries is driven by Tier II with 33%. This indicates a higher reliance on traditional methods and a stronger personal touch preference in these smaller urban centres. Interestingly, when it comes to agents and call centres, both tiers are on the same page, preferring them equally for both types of insurance enquiries.

When it comes to Health and Life Insurance enquiries, agent satisfaction is at its highest

Navigating the world of insurance hinges on touchpoints that not only inform but also inspire trust and confidence. At the core lies expertise. Whether it's an agent, branch staff, or call centre representative, customers want accurate information and insightful policy suggestions. Knowledge builds trust, which in turn leads to the highest level of customer satisfaction. Factors such as company reputation, financial stability, and reliability also influence their satisfaction levels. Prompt response to customer queries and concerns is vital. Even the website design, ease of navigation, and overall user experience greatly impact customer satisfaction.

The satisfaction level with the agent is found to be highest for Health and Life Insurance enquiries. This is driven by both Tier I and Tier II cities. On the other hand, satisfaction with call centre representatives is found to be lowest for both Health & Life Insurance enquiries. Although call centre representatives play an essential role in handling insurance enquiries, the personalized service, expertise, relationship building, accessibility, responsiveness, and continuity of service provided by insurance agents contribute to higher satisfaction levels overall. Insurance agents provide a more personalized and one-on-one experience compared to call center representatives. Agents understand the cultural context, specific needs and circumstances of customers in their locality to provide tailored solutions accordingly. This personalized approach creates a more positive and satisfying customer experience. Agents also outperform on long-term relationship building, accessibility, responsiveness and continuity of services.

Despite enquiries from several touchpoints, people deter from purchasing Health and Life Insurance since they depend on other sources for emergencies

People depend on family, friends and social support during times of financial emergency. This lowers the perceived need for Health and Life Insurance as people believe they can rely on their loved ones in challenging situations. Complexity and mistrust on insurance providers also make people deterrents to purchase insurance. Lack of awareness about the importance of Health and Life Insurance is another roadblock.

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When it comes to Health Insurance, people consider it as unnecessary expense due to the following reasons:

1. People don't consider this as an investment as they don't get any return
2. Other financial responsibilities involving tangible assets such as home & car loans are prioritized over Health Insurance
3. People prefer saving for life events such as marriages, but Health Insurance has never been a priority culturally in India

A lot of people think that they are in good health and don't need any Health Insurance, and if they need anything during emergencies, they will turn to their loved ones. They are also concerned about the premium and often try to negotiate for better coverage. However, they end up not buying the insurance. Prospects are apprehensive about disclosing information about their lifestyle and lifestyle-related conditions. They find the processes too complex and tiresome and this often deters them from buying Health Insurance.

Trust in insurance providers for the claim process is also found to be low despite their enquiries with various touchpoints. The negative word of mouth and adverse social media positioning refrain people from trusting the insurance providers for Health and Life Insurance claims. Other mistrust stems from concerns about hidden terms and conditions or fraudulent practices. This skepticism deter people from buying Health and Life Insurance.

In India, the idea of social security is still evolving, and insurance can act as a means for people to secure themselves and their families. The promise of financial stability and safety against unforeseen events can be an encouraging factor for many. With the growth of the digital and social media ecosystem, there has been a steady increase in awareness regarding the importance of Health and Life Insurance. People are gradually becoming more informed about the risks and benefits of insurance coverage. Seeing friends, family, and social circles benefit from their insurance coverage can certainly persuade individuals to consider purchasing health and life insurance. Personal experiences and recommendations are pivotal in motivating individuals to buy insurance policies.