Insurance CuES 2023, an annual syndicated report completed by Hansa Research, has revealed insights into Indian consumers’ perceptions and their experience with life insurance brands.
The report found that, with premiums continuing to increase, affordability has become a major barrier to life insurance purchases. This was particularly pronounced for women who much prefer to pay their premiums monthly.
The human touch… except when it comes to payments
The report also revealed that 22% of customers cited ‘Company does not keep in touch’ as a potential reason for leaving. Direct contact at regular intervals was found to be more effective than impersonal digital channels in preventing lapse; 8 out of 10 customers desired calls/meetings after purchase – at least once every six months.
WhatsApp was found to be the preferred mode of reminder communication, with 41% preference in 2023 a 10 percentage point increase from 2022.
Digital behaviour was also found to be on the rise across the customer journey, with a preference for online payment modes increasing from 62% in 2021 to 73% in 2023.
The strength of brands
Simplicity, transparency, and customisation/personalisation were identified as key factors for differentiating between brands, with physical consultative advice remaining a highly desired element when part of the online purchase process.
The report ranked the leading life insurance brands per industry Net Promoter Score (NPS) with ICICI Prudential Life Insurance at the top with an NPS of 62. They were followed by HDFC Life Insurance with a score of 59 and Max Life Insurance with a score of 59. Other brands such as Tata AIA Life Insurance and SBI Life Insurance improved their rankings, and the industry’s Net Promoter Score increased overall from 48 in 2022 to 54 in 2023.
LIC retains the highest brand awareness, though it slipped marginally in terms of advocacy and has been displaced in the overall ranking for the year 2022. Other brands that score high on brand awareness include SBI Life Insurance, HDFC Life Insurance, Bajaj Allianz Life Insurance and ICICI Prudential Life Insurance.
What it means for life insurers and the IRDAI
The Insurance Regulatory and Development Authority (IRDAI) has an Insurance for All by 2047 goal, which aims to greatly increase insurance penetration in India over the next 25 years. This week, the All India Insurance Employees’ Association (AIIAE) expressed their concerns over the IRDAI increasing the number of insurers in the country, claiming that in itself would not increase insurance penetration.
The Insurance CuES 2023 report provides valuable insight into consumer behaviour and preferences in the life insurance space. The findings highlight a key issue of affordability – a challenge that the IRDAI and industry will need to overcome if it is to increase insurance penetration in India significantly. There are also key lessons to be learned for the industry – including the importance of personal touch in maximising client retention.
