ICICI Prudential Life Insurance ranks the highest on loyalty, followed by HDFC Life Insurance whereas LIC still tops the list on awareness, followed by SBI Life Insurance
Life insurance is a growing market in India. Over the last few years, a lot of reports have highlighted the big drivers of this market. A recent report also highlighted the brands that are ranking top at the segment. As per the findings of Hansa Research CuES 2023 report, ICICI Prudential Life Insurance has been ranked as the leading life insurance brand on loyalty as per industry Net Promoter Score (NPS), followed by HDFC Life Insurance and Max Life Insurance.Taken by the top spots among all the life insurance providers, with impressive NPS scores of 62, 59, and 59 respectively.
Customers rated the above brands significantly higher on multiple parameters such as digital experience, ease of dealing, easy documentation, communication, and responsiveness of their distribution channels. Following the trail, brands like Tata AIA Life Insurance and SBI Life Insurance have also improved their ranking. According to the report, the industry's NPS is now 54, up from 48 in 2022.
On the other hand, LIC retains the highest brand awareness, followed by SBI Life Insurance, HDFC Life Insurance, Bajaj Allianz Life Insurance, and ICICI Prudential Life Insurance.
The report highlights an increase in digital behaviour of a customer’s journey, be it for pre–purchase information on the company website or service communication such as payment reminders. A critical aspect recognised for an online buyer is the brand perception of its digital service along with customer support. Customers today seek multimode communication through digital channels. For instance, WhatsApp has become the preferred mode for reminder communication (41% in 2023). Online payment modes such as UPI, credit card, debit card and net banking witnessed a significant growth from 62 percent in 2021 to 73 percent in 2023.
Moreover, the report summits that 22 percent customers cited ‘Company does not keep in touch' as a potential reason for leaving. In addition, 8 out of 10 customers would like the Bank RM, agent to call or meet them after purchase, at least once every 6 months. Consumers rank simplicity, transparency, customisation and personalisation as key factors for differentiating between brands. In addition, physical consultative advice continues to remain a highly desired element in an online or offline purchase.
Nonetheless, the report points out three major barriers to customers’ life insurance purchasing decisions namely ‘behavioural biases or perceived need’, ‘economic constraints and affordability’, and ‘perceived difficulty in a purchase’. Affordability has become a more pressing issue than before and is even more intensified for women. Moreover, those with the existing policies have listed their preference for monthly premium payment terms as much higher as compared to men.
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