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In India’s rapidly digitising economy, you would assume that one of the staples of such a process — basic term life insurance — is an almost no-brainer: just sign up online. After all, 62% of buyers now look up their policies digitally — scrolling through aggregators, watching videos, and reading social media posts. But here’s the thing: most of them don’t finish the journey online.
There is a curious gap between research and conversion — the “How India Buys Insurance 2.0” report reveals. Despite most potential buyers going to online platforms to figure out, many end up relying on friends and family, agents or offline channels to buy the policy. This survey is based on responses from 3,955 individuals across all Indian states and union territories.
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The report highlights key findings of a survey on how Indians go about researching term insurance. It shows that 62% of respondents searched for information after they were triggered to think of buying term insurance for the first time. This translates to a strong tendency towards self-education prior to purchasing. In contrast, 38% were passive buyers without any proactive search, indicative of a significant group of passive buyers who may follow immediate connections or default preferences.
When it comes to information sources, family and friends emerged as the most trusted advisors, with 56% of respondents seeking their guidance. This reliance on personal networks underscores the emotional and social nature of financial decisions like term insurance. Digital platforms — such as comparison websites and insurance company portals — were used by 52% of respondents, reflecting a significant shift toward digital-first behaviour in insurance research. Interestingly, this figure slightly surpasses the 50% who consulted agents, indicating that digital tools are now as influential as traditional advisory channels.
Further, Google Search was used by 41%, while banks were a source of information for 30% of respondents. YouTube videos and online articles followed closely with 29% and 28%, respectively, showing a clear appetite for video and written content. Surprisingly, even ChatGPT was cited by 11% of respondents as a source — signalling growing openness to AI tools in insurance education.
Sarbvir Singh, Joint Group CEO of PB Fintech, said, “This year's edition of How India Buys Insurance report puts a spotlight on the awareness gap even more evidently than before. A large proportion of consumers plan to sell ancestral assets or borrow money during a crisis rather than opt for simple, accessible solutions like health and life insurance to protect their families. As an industry, it's imperative that we strengthen awareness and improve the overall customer experience to drive broader adoption and ensure financial security for all.”
The average number of sources used per person was 3.1, reflecting a diversified and cross-verified decision-making process. Overall, 85% of respondents used offline sources, while 78% used online sources, highlighting that both channels continue to play crucial roles — often in combination — in shaping insurance buying decisions. This hybrid approach points to a need for insurers to ensure consistency, clarity, and trustworthiness across both online and offline touchpoints.
The study employed a mixed-method approach comprising qualitative discussions and quantitative face-to-face interviews using a structured questionnaire. The quantitative component was divided into two modules: listing and main interviews. Fieldwork for the study was conducted between July and September 2024.
The target group for the research included key decision-makers or individuals who play a significant role in selecting insurance products for themselves. Participants ranged in age from 23 to 65 years and included both males and females from the NCCS AB socio-economic segments. The study focused on individuals who had purchased health or term insurance in 2022 or later. It included a mix of buyers—those currently using insurance products—and non-buyers who had considered purchasing health or term insurance at some point but ultimately chose not to proceed.
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