A new survey reveals how Indians buy insurance and what frustrates them about their policies. The study was conducted by the Insurance Brokers Association of India (IBAI) and McKinsey.
The survey found that insurance brokers and agents are the preferred channel for buying policies. This is especially true for High Net-Worth Individuals (HNIs). Among HNIs, 75% purchase insurance through these advisors.
This trend is less pronounced in the retail segment. Only 51% of retail customers use brokers or agents. Overall, 59% of all policyholders prefer to buy through an advisor.
Friends and family also have a major influence. They affect the decisions of 41% of all customers. This influence is stronger in the retail segment, impacting nearly half of those buyers.
High Premiums and Complexity Are Top Concerns
The survey identified several key customer pain points. The biggest issue is high premium costs. This is a challenge for 63% of retail investors and 40% of HNIs.
Complex policy terms are another major problem. They affect 57% of retail customers.
Many customers are also unhappy with the claims process. Poor claims experiences trouble nearly half of all individual investors. Furthermore, 62% of HNIs feel their policies are not customized to their needs.
Claims Experience Drives Customers to Consider Switching
A bad claims experience makes many customers think about changing providers. This is true for 50% of HNIs and 32% of retail customers.
However, actual switching is less common. Only 22% of HNIs and 13% of retail customers actually change providers after a claim.
Satisfaction levels differ between the groups. More retail customers remain loyal after a claims experience. Thirty-two percent of retail customers stay with their provider, compared to just 15% of HNIs.
Customers Want Help During Claims
The survey also highlighted what customers want during the claims process. Most customers expect help negotiating a settlement. Seventy-three percent of all customers want this assistance. That number rises to 88% among retail customers.
Timely processing is also a major priority for 63% of customers. Help with documentation is sought by 70% of HNIs and 49% of retail customers.
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