India: 25% would cut life insurance premium payments to ease financial strain

| 23 Jun 2020

One in every five Indian consumers surveyed in Mumbai and Bangalore are feeling anxious about their financial situation, with a further 8% of respondents left feeling overwhelmed and unable to cope.

The survey conducted by Swiss Re revealed that in order to ease the financial strain, many Indian consumers were happy to sacrifice their home/ motor insurance (28%) while a quarter would cut life insurance premium payments (25%) to help ease the burden. These were some of the highest figures in the region.

Read also: India: Health insurers barred from contesting claims after 8 years of premium payments

But a huge majority (68%) also felt that insurance helped ease their stress and provide financial support during this time and 78% said their claims experience matched expectations.

Swiss Re head of P&C client markets for India Amitabha Ray said, "Indian consumers are among the most active and engaged when it comes to insurance, trailing only China when it comes to researching new policies and satisfaction levels, proving the potential and importance of insurance in this growing market."

According to the survey, when it came to health issues brought on by COVID-19, social disruption was the biggest concern (71%), followed by physical fitness (67%) and the inability to care for others (66%).

While it was last on the list, mental health issues resulting from isolation and loneliness was the highest of any other market – 64% of Indian respondents.

The Swiss Re-commissioned poll of 1,000 residents in Mumbai and Bangalore was conducted by global market research company, Ipsos, in the last week of May.

The same survey was conducted in the APAC economies of Australia, Singapore, Hong Kong and the Chinese megacities of Beijing and Shanghai in April. The data was collected in local language via smartphones, laptops, or tablets.

Swiss Re head of P&C reinsurance for Southeast Asia, India, Hong Kong, South Korea and Taiwan Victor Kuk said, "These findings have given us a unique opportunity to better understand consumers' financial and physical wellbeing needs during a global health pandemic.”

“It shows the change in consumer behaviour as they face times of stress and instability and the role our industry can play as we look to close the protection gap and build societal resilience across the region," said Mr Kuk.

Check these out:

Asian market falls behind in terms of pension systems- Allianz Global Pension Report 2020

COVID-19 Considerations for Life and Health Insurers in Asia - Oliver Wyman

5th Asia Trusted Life Agents & Advisers Awards receives 250 entries from 12 markets


For the full suite of stories and updates, always check in to our Facebook / LinkedIn. Click the following if you want to improve your sales, learn how to be a better leader, or you just need some motivation to kick start your engine.