New Delhi [India], October 22 (ANI): Online research now influences more than 40 per cent of health and life insurance sales in India, with consumers increasingly shortlisting insurers digitally before turning to agents for advice, according to a study by GoogleMcKinsey & Company as knowledge partner.
The study found that nearly 80 per cent of the insurance-buying journey unfolds online, highlighting the growing importance of digital platforms in shaping purchase decisions. It said insurers could gain from better connecting online research with offline advisory services as consumers increasingly expect agents to build on the information they have already gathered.
The report identified a growing group of buyers called Digitally Influenced, Closed with Assistance (DICA), who research and compare policies online before seeking human assistance to validate their choices. This segment represents four times the volume of purely digital insurance sales, making the transition from online research to assisted purchases a key opportunity for insurers.
“Closing the gap between a consumer's digital evaluation and their offline advisory experience is now the biggest lever for insurance penetration and value creation,” Siddharth Shekar, Director, Google India, said.
The study found that 78 per cent of consumers narrow their choices to two or three insurance brands online before speaking to an advisor. More than half retain their original shortlist even after consulting an agent, suggesting that insurers need to establish visibility early in the buying process.
Digital research is also becoming more detailed. Long queries account for 18 per cent of insurance searches on Google, while 41 per cent of users use AI Overviews to compare options and clarify their coverage requirements. Around 60 per cent of online insurance researchers use video during their decision-making process, with insurance-related content on YouTube recording more than 2.5 billion views in the past year.
However, the shift towards digital research has not eliminated the need for personal advice. Fewer than 30 per cent of buyers are comfortable purchasing high-value policies entirely online. More than 40 per cent said they were frustrated by having to repeat their requirements when moving from digital research to an agent, while over a third cited generic sales pitches that did not reflect their needs.
The report also found that insurance buyers whose offline purchases were influenced by online research generated around 40 per cent higher policy premiums than those reached through traditional sales.
“The future of insurance distribution will not be defined by where customers buy, but by how effectively we connect digital discovery with trusted advice,” Sumit Madan, Managing Director and CEO of Axis Max Life Insurance, said.
Parthanil Ghosh, Managing Director and CEO, HDFC ERGO General Insurance said, “The emergence of the DICA consumers will boost awareness and accessibility in the insurance sector”.
The findings are based on a survey of 1,039 insurance consumers, conversion data from life and health insurers, interviews with industry advisors and distribution platforms, and insights from Google and McKinsey. (ANI)
Digital research shapes over 40% of India's health, life insurance sales: Google-Mckinsey
