The insurance industry is a large one. There are various kinds of insurance policies available in India such as life insurance, term insurance, health insurance, car insurance, property insurance, and accidental insurance, among others. Like any other industry, the insurance sector too offers analytical data regarding the performance of different policies, the claim settlement ratio, the current perception of different policies, forecast of the industry’s future performance, and various other insights. The data helps to recognize how certain policies are perceived. This is known as the market study of insurance.
These researches are conducted by different regulatory boards and companies and some of the recent market studies have shown that insurance is perceived in a better light compared to before. The studies indicate that the insurance sector has made a significant amount of progress recently. However, it is also clear that a lot of work still has to be done in order to improve the insurance industry’s performance in India. The researches focus on the entire country, including rural and urban India. The Insurance Regulatory and Development Authority of India (IRDAI) conducted and released the research-related data. The IRDAI and the government have it in their plans to spread awareness and improve the performance of the industry in the near future.
Awareness and understanding of insurance
A market study of insurance that was conducted in 2017 showed a huge improvement in awareness and understanding of insurance policies in urban India. More than 83% of the families in urban areas are aware of life insurance policies. The study also showed that the term plan is one policy that most people are aware of in India. This is very significant information, as the term plan was introduced no more than a decade before the study was conducted. This insurance policy is a pure life plan as it offers only a death benefit and there is no maturity payment. This fact makes term plan an affordable choice and the increasing awareness about it is a good sign.
The same study has revealed that more than 75% of the people, who have bought insurance, believe that a life insurance plan is a compensation for the life that is lost. A study conducted only five years prior to the 2017 study had shown only 51% of people believed that. There were many people, who believed that life or term life insurance is an asset- rebuilding cover. Thankfully, the percentage of people who believed this had decreased in time of the study conducted in 2017. The study revealed that the life plan is a means of saving and protecting financial security. That is the correct intention of the insurance policy.
The life insurance marketing research had shown that there was an increase in awareness about the insurance policy. A positive change can be noticed today because of the initiative.