Young, lower income groups prefer online insurance: Bajaj Allianz Life

The online channel has gained popularity among insurance-seekers in the lower income brackets, particularly those earning under Rs 5 lakh, a trend analysis conducted by Bajaj Allianz Life Insurance has revealed. “There is a preference of the online medium amongst those with a income lower than Rs 5 lakh.

While 65% of the customers who purchased life insurance online belonged to the income slab below Rs 5 lakh, those earning Rs 5 to 10 lakh comprise 21% of online customers.

Higher income groups i.e. Rs 25 lakh and above comprise only 5% of the total customers buying life insurance online,” noted the analysis, which has taken into account purchase behaviour of the life insurer’s own online customers since 2008. The sample size for the survey was 2470, according to Bajaj Allianz.

This apart, the age profile of online insurance buyers, not surprisingly, is made up individuals between 26 to 35 years of age. They form 55% of the total online customers, followed by 36-45-years bracket, which accounts for 19%. “Younger customers in the age group of 16 to 25 years comprise only 14%, while older age group of 46 years and above contribute to only 9% of the total online customers,” the study stated.

Curiously, contrary to the common perception, the new-age sales channel has found favour among insurance-seekers in the non-metros. “Broadly, 35% of the online customers belong to metros while 65% customers hail from non-metro locations,” the analysis noted.

Within the metros, Bangalore tops the list of online buyers, with 29% of the total customers belonging to the city. New Delhi, Mumbai and Hyderabad follow – in order of number of policies bought online – with 21%, 19% and 15% respectively. “Among the non-metros, Pune, Thane, Ahmedabad, Gurgaon, Ghaziabad, Lucknow and Jaipur collectively contribute to 27% of the online policies,” Bajaj Allianz Life said.

http://economictimes.indiatimes.com/personal-finance/insurance/insurance-news/young-lower-income-groups-prefer-online-insurance-bajaj-allianz-life/articleshow/18515607.cms