Identifying the consumer trends in the
Insurance space
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How are the Urban consumers
dealing with personal finance
What are the relevant
segments of Indian online
consumersHow can the marketers reach
these segments across
various mediums
What is the level of
financial literacy among
Indian consumers
How profitable are these segments
for the BFSI marketers
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questions
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from the
SMEs
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the Industry
Experts
Survey
Live
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Some
sample users
fill the survey
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reward
program –
respondents
voluntarily
participate
Easy
interpretation
of data via
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access
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the
subject /
topic
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8
Apr Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
Healthcare and Health Insurance
RICS Project Timeline
2016 2017
Baseline
Fixed Income, Employee Benefits and Government
Schemes
Mutual Funds, ETFs, ULIPs
Stocks, Equity, Derivatives
Real Estate & Property
Retail Banking
Insurance and Risk Coverage
Pensions, Superannuation, and Retirement Planning
Gold, Commodities and Gold Schemes
Borrowing, Credit Cards and Loans
BFSI Services, Customer care and Digital Engagement
Already Published in April 2016
Next report in line to be published by end of June 2016
Ongoing survey – already captured responses from 2000 respondents
Survey is live in www.economictimes.com/surveys
Questionnaire design is in process
Questionnaire design is in process
9
ET RICSInsurance & Risk
Cover Survey
10
Awareness & Penetration Degree of awareness around various insurance plans
Reasons for purchase/ preference / ownership
Barriers & Influencers To understand the key triggers for purchase
Discovering trust levels associated with different channels
of insurance sales
Role of Internet
Post-purchase Behaviour Insights on returns, surrenders, free look period etc.
Scope of the Survey
The broad study of the insurance & risk cover survey includes the following
Choice of channel while purchasing Insurance
11
Sample Size, Demographics - key highlight
Over 6,000 urban netizens shared
their experiences in the insurance
survey
Covering all 4 zones with
diverse consumer profile
Responses from all adult age groups
defined in four buckets 18 to 25 yrs,
26 to 35 yrs, 36 to 45 yrs and 45+
The survey covers respondents
in Townclass 1 to 4
Insights derived from 10,880analysis tables
85 questions were asked on
consumer awareness, perception,
consideration and purchase
12
What do you understand by Term Insurance?
What are the main reasons that you do not have insurance cover?
What are the top 3 sources of information that influence your purchase decision?
What are the top 3 deciding factors you consider while selecting insurance policy?
What type of websites you refer to for information before buying insurance?
Please share your experience on entire insurance purchase journey.
What sources of information do you trust most?
What are the future objectives for which you intend to buy insurance in near future?
Sample - key Questions
13
Actionable Insights
Market your
strengths
3• Insurance
Coverage
enhancement
Key Opportunities
Boost performance on
opportunity drivers
needing improvement
2• Awareness
• Online presence
Keep watchful eye
on risk drivers
of relative strength
4• Customer
satisfaction
• Online reviews on
comparison portals
Key Risks
Boost performance
on risk drivers of
weakness
1• Product
misunderstanding
14
15
Insurance Ownership
by Zone & Gender
16
Insurance - Portfolio
4
10
14
14
15
18
25
51
51
72
Travel insurance
Critical illness insurance
Endowment insurance
Property insurance
Investment-cum insurance -ULIP
Investment-cum insurance – Money Back
Term insurance
Medical/Health insurance
Vehicle insurance
Life insurance
While 72% of 156
million urban internet
population claimed
that they had insured
their life,
only 1/4th of urban
netizens have taken
term plan
17
Awareness of Insurance terms
49% 47% 29%
Endowment Plan Term Plan Annuity Plan
45%
ULIP
Only ½ of the urban
netizens are aware of the
term Endowment Plan
The awareness amongst
the urban netizens in West
and South is more
compared to base of All
India netizens
Seems like Annuity or
pension plan is the most
misunderstood insurance
plan - only 3 out of every
10 urban internet
consumers is aware of the
term
At one point of time, ULIP
was one of the most
famous insurance cum
investment plan, but at
present only 45% of the
urban internet population
are aware of the term
"ULIP (Unit Linked
Insurance plan)"
18
Are you covered well?Over 1/3rd of the consumers feel that they are not well covered for Life Insurance
9 8 913
8 10 10 7
95
99
12 9 10 9
1621
1611
14 1710 15
28 30 27 21 32 27
27
31
26 25 26 2725 25
3624
All India North South East West 10L+ 5 to 10L Lessthan 5L
Definitely/Adequately well-covered
Probably well-covered
May or may not be well-covered
Probably not well-covered
Definitely not well-covered
4 out of every 10 urban consumers from east definitely feel that they don't have adequate life
cover. A similar trend is seen in big metros.
Zones Town classALL
19
Coverage amount (Now vs. what it should be)
Consumers feel they are under covered – Insurance players may focus in EAST and SOUTH
where the gap is huge. These are potential regions to increase the coverage amount.
Actual average cover amount for life
insurance and what it should be is
highest in West
20
Source – Most Trusted vs. Least Trusted
-8
-11
-4
13
9
5
-9
8
-2
LEAST TRUSTED MOST TRUSTED
1. Financial advisors/Agents
2. Bank employee who also sell
insurance products
3. Insurance Company employee
1. Search/comparison websites
2. Friends, Relatives, peers
3. Chartered Accountant (CA)
1. Insurance
company
websites
1. Insurance
company mobile
app
1. Online
insurance
selling sites
21
Online Purchase of Insurance
32
27
Purchased online
Have searched online butpurchased offline
Neither searched nor purchasedany insurance policy online
Searched online and bought onmobile
Bought on mobile app
Only 1/3rd of the urban internet population had ever purchased any insurance policy ONLINE
Close to 60%
consumers already
have online platform
entwined in their
insurance purchase
process either directly
or indirectly
22
Figures in percentage
Drivers for online purchase Roadblocks for online purchase
Got the best price 71 Don’t trust online buying 48
Hassle-free 55Expect the service will be an
issue, if there is a problem36
Speed of Policy Issuance 48Can’t make out how much and
for long insurance is needed25
No danger of miss-selling 32 Process is more cumbersome 17
More coverage 31The transaction dropped mid-
way while attempting to buy11
How to get them to buy insurance online –
Drivers and Roadblocks
23
Focus on improving consumer’s
lives…will be the mantra for
success!!
ET Surveys
1. Customized Studies - RICS
a. Region wise / geography split report
b. Customized report for specific target groups / segments
c. Customized dashboards
d. Management top-line Report
2. Brand track study
3. Customer / Client satisfaction study
4. Market segmentation research
5. Brand Equity Surveys
THANK YOUSANJAY SINDHWANI
VP & BUSINESS HEADThe Economic Times (Digital)
www.economictimes.com/surveysEmail: [email protected]