Key highlights

85%+

of health & life insurance considerers are triggered by push : a recommendation from friends, family, or an agent reaching out

~50%

or more of buyers rank affordable premiums as the top evaluation criterion for both Health and Life Insurance purchase

40%+

cite high premiums as the top reason for not purchasing or lapsing, across both health and life insurance categories

Executive summary

India knows insurance matters. It just isn’t buying enough of it.

The report reveals a clear paradox: while insurance is widely considered important, this does not consistently translate into purchase. The barriers are affordability, product complexity, and a lack of urgency.

73% rate health and 70% rate life insurance as very important, yet most Indians remain uninsured. Purchase is overwhelmingly driven by push – recommendations from friends, family, or agents. When people lapse, cost dominates: 47% of health and 44% of life lapsers cite unaffordable premiums.

For non-buyers, complexity is the barrier: 53% of health and 57% of life non-buyers show poor product understanding. Closing the gap demands simpler products, trusted outreach, and early financial education.

Key insights

Finding 1

What makes Indians consider insurance?

Triggers cluster into three categories: Push, Fear, and Financial Prudence. Push dominates in both health and life insurance and is the trigger most strongly correlated with actual purchase. Notably, fear is more influential for life insurance than health, while financial prudence plays a bigger role in health consideration.

Push

Social and outreach

Health 88%

Life 85%

Fear

Event triggered concern

Health 60%

Life 66%

Financial prudence

Planned decisions

Health 60%

Life 54%

Finding 2

What do Indians look for when buying insurance?

When evaluating a policy, Indians prioritise price and coverage above all else. Health buyers lead with affordability; life insurance buyers seek value for money. Brand, claims settlement, and network coverage follow closely, pointing to a consumer base that researches carefully before committing.

Finding 3

Why Indians don’t buy, or stop renewing?

Across health and life insurance, affordability and product complexity are the two dominant barriers to both first-time purchase and renewal. Lapsers and non-buyers reveal distinct but overlapping concerns. The patterns are consistent across both categories.

Methodology

This study was designed to give a 360-degree view of Indian consumers; awareness, attitudes, and behaviour across health and life insurance categories.

Objective

To understand consumer awareness, needs, and gaps in health and life insurance across India.

Methodology

Quantitative analysis and face-to-face, structured interviews. Fieldwork conducted from February to March 2023

Target group

Key financial decision-makers and co-decision-makers, aged 23-60 years for health insurance and 23-50 years for life insurance. Mix of men and women across NCCS A, B, C socioeconomic classifications.

Coverage

3,327 respondents from 27 cities, across Metro, Tier 2 and Tier 3.

Sample composition

1,651 life insurance respondents and 1,676 health insurance respondents.

Industry speaks

Overall pleasurable experience. Pay a little first and Pay a little during the development of the app as milestones are achieved, which made me feel very confident and comfortable. Seamless and Easy process.

How India Buys Insurance

Key highlights

Executive summary

Key insights

What makes Indians consider insurance?

What do Indians look for when buying insurance?

Why Indians don’t buy, or stop renewing?

Methodology

Objective

Methodology

Target group

Coverage

Sample composition

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