Close to 78% respondents from India are planning to buy life or health insurance products in the next 12 months, according to a recent survey done by Swiss Re.
Life insurance is not as expensive as people may perceive and Indians can afford it, the study finds.
For a term insurance cover, 80% of respondents in India are willing to pay at or above the market price range.
Amit Kalra, head of economic and consulting India, Swiss Re Ltd says, “There is willingness to buy insurance cover and Indians find it affordable.”
“We also got a perception that insurers try to sell more of investment products than protection plans. Lack of customised products was another problem,” he said.
Insurance penetration in India is at 5.1%---life contributes 4.4% and 0.7% comes from non-life.
The survey was conducted across 11 Asia Pacific markets, covering 13,800 consumers between the 20 and 40 age group. People between 20 and 40 age group in India are the most willing to take risk in their lifestyle, such as pursuing danger sports and working for longer hours.
“But, 83% of Indian respondents still consider capital preservation as their top priority in making an investment. This proposition is the highest in the region,” added Kalra.
The insurable population in India would be 250 million by 2020. Hence, the insurance products should be innovative enough to satisfy the requirements.
“Insurers must demonstrate the benefits and their value propositions to meet the needs of consumers,” Amit Kalra says.
In India, 71% of the respondents are concerned about increasing medical expenses, the study finds.
But, lack of awareness about long-term healthcare products, where premiums are locked in for multiple years, is the reason why healthcare market is not picking up.
No comments:
Post a Comment