Increase in premium amount of life insurance a big concern for customers

The increase in premium amount for life insurance has become the biggest concern for consumers, while affordability is becoming a more pressing matter, shows a new survey.

Mumbai-based consumer insights and market research company Hansa Research on Tuesday conducted a survey that contains responses from nearly 3,300 life insurance policyholders in India. The report highlights three major barriers to customers' life insurance purchasing decisions -- behavioural biases/ perceived need, economic constraints/affordability, and perceived difficulty in a purchase.

'Company does not keep in touch' is cited as the potential reason for customers leaving, according to 22 per cent of the people, suggests the report. In addition, eight out of ten customers would like the bank RM/agent to call or meet them after purchase at least once every six months, it said.

The survey also added that digital behaviour is also on the rise across the customer journey, be it for pre-purchase information on the company website serving as the first frontier or service communication like payment reminders. 

For an online buyer, apart from customer support, another critical aspect is the brand perception of digital service, highlights the report.

According to a CNBC TV18 report, in the month of March, the premium for the private life insurance industry grew at a steady pace of 35 per cent on a year-on-year  (YoY) basis and 20 per cent for FY23. In March 2023, HDFC Life Insurance was the strongest stakeholder and its premium grew by 83 per cent, with Max Life Insurance following at 43 per cent, shows report.