The outbreak of highly contagious Novel Coronavirus COVID-19 has impacted consumer sentiment towards their financial situation, overall health and future insurance purchases, reveals a survey conducted by leading reinsurance provider Swiss Re Group.
Based on responses received from about 1000 participants across Mumbai and Bangalore, life insurance and health insurance have been considered as the most significant policies in India in the past three months, by nearly 39 per cent and 63 per cent respondents respectively, while at least 1 in 3 people have searched for new policies and about 1 in 4 have purchased a new policy during this period.
A huge majority (68 per cent) of the participants felt that insurance helped to ease their stress and provide financial support during the time of COVID-19 crisis and 78 per cent of them said that their claims experience matched their expectations.
With almost one third of consumers in India are feeling anxious about their financial future, many are ready to sacrifice home / motor insurance (28 per cent), while a quarter would cut life insurance premiums (25 per cent) to help ease the burden.
In fact, Motor Insurance witnessed 23 per cent yoy decline in growth in May 2020 leading to sharp decline in premiums.
Due to the health concerns, retail Health Insurance segment registered a strong yoy growth of 25 per cent, while the overall growth in the health business was moderate at 9 per cent yoy as muted 3 per cent yoy growth in group health dragged the overall growth.
Covid-19 has provided opportunity to showcase value-add benefits and bundled offers as the disease has driven greater levels of vigilance around attention to policy coverage details.
Despite concerns about the financial future, Fire Insurance premiums, however, grew 22 per cent yoy in May 2020, likely due to higher corporate renewals compared to retail businesses as underlying borrowers focus on cash conservation.