Some stats about our Indian consumer....

Are people yet not aware of the benefits of insurance? Or majority of the population has become risk takers? I feel, former is the more justified reason in case of our country….yes, people are yet not aware about the long term benefits of the insurance products, they are not even aware of the benefits of starting early. Statistics have highlighted that in India penetration level of insurance is only 5.1% out of which 4.4% has been contributed by Life Insurance and 0.7% by non-life.

There should be a match between the requirements of the customer and the insurance products, and that should be explained to the customer.  

The survey conducted by Swiss Re. It 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,” said Mr. Amit Kalra. The insurable population in India would be 250 million by 2020. Hence, the insurance products should be innovative enough to satisfy the requirements.

Life insurance is not as expensive as people may perceive and Indians can afford it, the study finds. For a term life insurance cover, 80% of respondents in India are willing to pay at or above the market price range.