Digital insurance market: In recent years, the motor insurance landscape in India has been undergoing significant changes, reflecting sweeping shifts in consumer behaviour, regulatory changes, and technological advancements. PolicyBazaar, a leading digital insurance marketplace, has compiled comprehensive data highlighting the latest trends shaping this dynamic sector. This story highlights the key trends identified by PolicyBazaar, the factors driving these changes and what they mean for insurers and policyholders.
- Customer Priorities in Motor Insurance:
Affordability: 29% of customers consider affordability as their top priority, emphasising the need for cost-effective solutions.
Brand Reputation: 21% of customers prioritise brand reputation, reflecting the importance of trust and reliability.
Customer Service: 19% value excellent customer service, reflecting the need for responsive and helpful interactions.
Coverage Features: 16% look for comprehensive coverage features, wanting policies that offer comprehensive protection.
Claim Process and Settlement: 15% focus on a seamless and efficient claim process, underlining the need for hassle-free claim settlement. Preferred Add-ons:
Roadside Assistance: 60% prefer this cover, indicating the importance of emergency assistance.
Zero Depreciation: 55% opt for this add-on, which offers greater financial protection.
Engine Protector: 20% want this coverage, which is especially beneficial during the monsoon season.
Consumables: 20% opt for this add-on to cover the cost of consumables.
Key Lock Replacement: 18% value this coverage for added protection.
Invoice Value Cover: 10% prefer this to ensure full reimbursement in case of a total loss.
Tyre protection cover usage is twice as high in the South (26%) as compared to the overall Indian average (13%).
- Seasonal coverage needed during monsoon:
Roadside assistance: 50% want this coverage to deal with emergencies.
Engine protector: 30% prefer it to protect against water damage.
Return to invoice value cover: 20% choose it to ensure full value reimbursement.
- Popularity of PAYD plans:
More than 1 in 3 customers choose Pay As You Drive plans (PAYD), while 3 in 4 renew them, indicating a shift towards personal motor insurance coverage.
Popular distance slabs:
5000 km: Chosen by 30% of customers
7500 km: Chosen by 25% of customers
10000 km: Chosen by 25% of customers
2500 km: Chosen by 20% of customers
Other trends
Additionally, 20% of these customers frequently opt for top-ups, indicating flexibility in their usage needs.
Interest in PAYD plans is highest in the South (55%) and lowest in the North (36%).
Top cities using PAYD plans: Delhi (8%), Bangalore (5%), Mumbai (3%), Pune (2%), Gurgaon (2%)
Metro cities have the highest adoption of PAYD plans, as collectively a significant percentage of insured vehicles are in these cities.
- Tier-wise distribution of motor insurance customers
Metro – 40%
Tier – 2 – 36%
Tier – 3 – 24%
Online adoption by residents of tier-2 and tier-3 cities has increased significantly by 13%, which was low earlier. This has been possible due to insurance awareness and advancement of digital technology.
