65% of Indians like to use digital medium to purchase insurance in future, says Swiss Re study
The COVID-19-enforced lockdowns led to a rapid rise in online transactions in insurance products and the same has now been established by the latest study conducted by Swiss Re.
The survey results underline Indian consumers’ extensive use of digital platforms and their preference to purchase insurance through them.
Around 65 per cent of Indian respondents are likely to use digital channels such as e-wallets, bank or insurance websites, and e-commerce platforms to purchase insurance in the future said the study. The finding also presents an opportunity for insurers to push sales through digital mediums.
The Swiss Re Institute study was conducted among 1,800 consumers in India, Indonesia, and Malaysia in June 2020 to understand their attitudes toward digital platforms and perceptions of buying insurance online.
The study states that digital payment apps such as Paytm are most popular, used by 85 per cent of Indian respondents at least once a week, closely followed by health-tracking apps (84 per cent), e-commerce apps and websites (76 per cent), and connected commuter platforms (69 per cent).
On the topic of difficulties faced through digital mediums, 45 per cent of Indian respondents said they find it hard to decide on the best product while 37 per cent said there is no agent to help explain the terms.
The survey tested six hypothetical life and health products to gauge consumer interest in insurance offered through different digital channels. They include medical reimbursement insurance, cancer reimbursement insurance (to cover cancer-related medical expenses), critical illness pay-per-use insurance, cancer insurance (pays a lump sum upon cancer diagnosis), hospitalisation cash – parametric haze or smog protection, and income protection for gig workers.
The results show that Indian consumers (nearly 80 per cent) are strongly inclined to purchase hospitalisation cash and critical illness pay-per-use insurance through digital platforms, but the other four products also have relatively high levels (over 70 per cent) of interest.