Max Life –Nielsen Survey on gauging Knowledge, Attitude &Behaviour of Digital Natives on Protection & Life Insurance
Online search for Life Insurance high in West India but purchases low
Pune: Max Life Insurance, one of the leading life insurers in India, has released an extensive research that aimed togauge knowledge, attitude and behavior of active internet users in India on Protection and Life Insurance. The research imparts insights on awareness and attitude of Indian digital natives towards family protection. Max Life Insurance conducted this research in association with Nielsen India, India’s premier market research institution.
The key findings from a sample of1009 respondents have indicated that Life Insurance is one of the most searched financial productsonline, but does not translate into proportionate purchases. West Residents display highest engagement on the online channel and are well aware of benefits received by purchasing life insurance online.However, despite this displayed sensitivity towards life insurance, it does not fare well in the action quotient.
- Understanding ‘Protection’ – Beliefs & Realities:61% of West Residentsdisplay high confidence on family protection, however, thepercentagecannot be considered high given that internet users are considered to have higher awareness and education levels. Reality shows that tendency of postponement is high with remaining 40% of underinsured people intending to buy Life Insurance after 6 months
- Understanding the role of Internet in Life Insurance:Casual attitude pertaining to protection is also reflected in West Residents search of financial products.Only 50% of West Residents have searched Life Insurance online.The trend is opposite to that witnessed in India
- Online Life Insurance – Perceived Benefits: A majority of West Residents believe that purchasing Life Insurance online enables consumers with benefits like quick turnaround and price competitiveness. Other perceived benefits from buying insurance online are- option of comparing multiple policies, no relying on agent and no paperwork
- Online Life Insurance – Barriers to growth: Lack of personal interaction and absence of transparency are the major concerns shown by West Residents while buying insurance online. Also, ironically, a majority of Internet savvy Indians came to know about online life insurance from traditional sources like agent &peer group. Internet, thus, has marginal contribution in creating awareness about Online Life Insurance
- Role of Internet in Purchase decision making:69% of Life Insurance owners from West searched the category over internet prior to last purchase. Majority of them searched through online retailer as well as the websites of life insurance companies.60% people did embark on the online purchase journey however, three fourths dropped off before the purchase was made. This reflects majority of West residents have still not accepted internet as a buying channel for insurance and find the online purchase process tedious or difficult
- Preference of Distribution Channel:Contrary to common belief on higher awareness about online insurance, Agent Advisors are the most preferred channel of purchase for immediate planned purchases. 57% of West Residents prefer buying life insurance from Agents
- Engagement on online platforms:West Residents are high in engagement on online channel.Older population is comparatively more comfortable transacting online than younger people.Inspite of the fact that they are highly active for paying premiums, checking NAV/Policy values and accessing premium payment receipts, only 16% have purchased policy online
Commenting on the research findings, Ms. AnishaMotwani, Director & Head – Marketing, Direct Sales & Ecommerce, Max Life Insurance said, “The research findings are a crucial insight into the customer’s behavioral psychology towards this evolving distribution channels and how people actually respond to it.These observations will, going ahead be the key in facilitatingproduct development.”
She further added, “The insights through the Nielsen survey is an attempt at decoding how the digital natives of today are increasingly adapting technology in their daily way of life.
The methodology adopted for this study was online questionnaire which was shared with avid internet users.These include Salaried, Businessmen/Self-employed aged between 28-35 years and 45-50 years and having varied income range from 5 lacsto 25 lacs and upwards.
About Max Life Insurance Co. Ltd. (www.maxlifeinsurance.com)
Max Life Insurance, one of the leading life insurers, is a joint venture between Max India Ltd. and Mitsui Sumitomo Insurance Co. Ltd. Max India is a leading Indian multi-business corporate, while Mitsui Sumitomo Insurance is a member of MS&AD Insurance Group, which is amongst the top general insurers in the world. Max Life Insurance offers comprehensive life insurance and retirement solutions for long-term savings and protection. It has a country-wide diversified distribution model, including the country’s leading agent advisors, exclusive corporate agency arrangement with Axis Bank and several other partners. Max Life Insurance is a quality business, focused on delivering excellence to customers through advice-based sales process, customer-centric approach to business, financial stability & investment expertise, and strong human capital.