Life insurance premium rise a big concern for consumers

Barriers to life insurance sale

• 22% of customers cited ‘Company does not keep in touch’ as a potential reason for leaving

• 8 out of 10 customers would like the bank RM/agent to call/meet them after purchase at least once every 6 months

• Brand perception of digital service is extremely critical aspect for the online buyer, along with customer support

New Delhi: The rise in premium amount for life insurance is the biggest concern for consumers, and affordability has become a more pressing issue, according to a survey released on Tuesday.

The report identifies three major barriers to customers' life insurance purchasing decisions - behavioural biases/ perceived need, economic constraints/affordability and perceived difficulty in a purchase.

The survey done by Hansa Research includes the response of about 3,300 life insurance policyholders across India. Respondents were asked a series of questions relating to their experience as a policyholder. Another key finding of the report is that 22 per cent of customers cited 'Company does not keep in touch' as a potential reason for leaving.

In addition, 8 out of 10 customers would like the bank RM/agent to call/meet them after purchase at least once every six months, it said. Digital behaviour is also rising across the customer journey, be it for pre-purchase information on the company website serving as the first frontier or service communication like payment reminders, it said. Brand perception of digital service is another extremely critical aspect for the online buyer, along with customer support, it added.