The next generation of India's consumers are increasingly aware of the benefits of insurance and are more willing than ever to buy cost-effective policies, according to survey results released this week by Swiss Re, the second largest reinsurance company.
The "Survey of risk appetite and insurance: Asia-Pacific 2011" was commissioned by Swiss Re to identify and examine changes in consumer attitudes regional risk since the first survey of the signing took place during the financial crisis world in 2009. Between April and May 2011, 13 800 consumers aged 20 to 40 years (generation X and Y) were surveyed in major cities in 11 countries in the Asia-Pacific. Data on the insurance needs of India and buying behaviors were collected through 2,000 individual face to face interviews with consumers in Delhi, Mumbai and Bangalore.
Once the data was collected, the results were tabulated using country of Swiss Re in the house metrics, consumers' appetite for risk index (Cafri). Cafri estimated the overall level of risk appetite in a specific population by strengthening their risk attitudes based on consumer responses to four key factors: health, finances, career and lifestyle. The Cafri ranges from 0 to 100, and the higher the index value of a population more likely it is to take risks. A score of 50 is equivalent to a neutral country at risk.
With a final score of 39.4 Cafri, India Ranked seventh in the country table, behind the developed markets of Japan, Hong Kong, Australia, Singapore, South Korea and Taiwan. While the combined number Cafri may indicate that the average consumer in India continues to be more risk averse than many of its neighbors, breaking the response to individual aspects of risk reveals the dynamism present in the Indian market. Through key 4 response categories, consumers in India indicated that they were very fearful of the risks including financing and security of the race (X-rated and IX 11), neutral in health care costs (seventh) but the safest in the region with the lifestyle associated risk (first). In this last category is only allowed to bring all the countries surveyed in emerging Asia (China, Malaysia, Vietnam and Indonesia) in the consumers' appetite for risk
Amit Kalra, head of Swiss Re Economic Research & Consulting Mexico, wrote in the report that India's national eclectic mix of respondents demonstrated risk priorities of the unique qualities and challenges of the insurance market in India. "In Asia Pacific, 20 to 40 years of age in India are more willing to take risks in their lifestyle, such as the pursuit of extreme sports, working long hours, and live for today without worrying about future. However, they remain one of the least willing to take risks in his career (9 th) and finance (10). For example, 83 percent of respondents still believe that capital preservation as their top priority making an investment. This proportion is higher in the region, "said Karla.
This endemic based savings culture is slowly changing however, as rising health care costs to encourage more Indians to invest now in the market and consider the insurance coverage. According to the survey, 71 percent of respondents in India concerned about the inability to pay out of pocket medical expenses in case of a major long-term illness, injury or threat of transmission of the debts due to premature death. The study also found that 70 percent of respondents would not be able to keep pace with rising premiums in the future. Both percentages were higher than the averages Asia-Pacific 67 percent and 58 percent respectively.
According to this need for protection remarkable, a remarkable 78 percent of Indian respondents told Swiss Re, who were planning to have a life or health insurance policy in the next 12 months, the highest proportion of the Asia Pacific near Indonesia. Medical expenses and financial risk are fueling the need for a secure and innovative financial planning. When asked what would stop the Indians from buying insurance at the moment, 42 percent said that high prices were the problem. However, when subjects were presented with various insurance products of modern life, many admitted that they were really affordable and within the price range you are willing to pay. In fact, 81 percent said they would pay at or above the market value of a specified period of life insurance coverage. Lack of awareness of long-term medical coverage, so that premiums are locked in against inflation for several years has prevented similar positive response to health insurance. To encourage the purchase of insurance in India, the work to be done to overcome this barrier perceived cost.
Amit Kalra said that this disconnection is needed to be corrected because of insurance in India is not as expensive as people may perceive. "More education is needed to ensure consumers understand the value of insurance to protect against the price they pay," he wrote.
According to the survey, these consumers in India from 20 to 40, its main source of education about personal finance and investment is television, with a response of 71 percent (the highest proportion in the region), followed by agents and newspapers. When it comes time to actually make a purchase, the traditional players have kept the dominant channel for the purchase of life insurance and health, with 89 percent of the vote, followed by banks and independent financial advisors, finally.
Swiss Re's research revealed what insurers must do themselves to attract the next generation of consumers in India. According to the survey, the most important criterion for the Indians when choosing an insurance company is value for money (55 percent prefer), followed by a good reputation (52 percent) and finally the financial accuracy (42 percent). Respondents also expressed concern that insurers tend to exaggerate their investment products compared with the security plans and the customization of each customer and the service was very lacking. "Insurers must demonstrate the benefits of insurance and strong value propositions to meet the specific needs of consumers, which emphasize the value, reputation and financial solvency," he said Kalra.
The "Survey of risk appetite and insurance: Asia-Pacific 2011" was commissioned by Swiss Re to identify and examine changes in consumer attitudes regional risk since the first survey of the signing took place during the financial crisis world in 2009. Between April and May 2011, 13 800 consumers aged 20 to 40 years (generation X and Y) were surveyed in major cities in 11 countries in the Asia-Pacific. Data on the insurance needs of India and buying behaviors were collected through 2,000 individual face to face interviews with consumers in Delhi, Mumbai and Bangalore.
Once the data was collected, the results were tabulated using country of Swiss Re in the house metrics, consumers' appetite for risk index (Cafri). Cafri estimated the overall level of risk appetite in a specific population by strengthening their risk attitudes based on consumer responses to four key factors: health, finances, career and lifestyle. The Cafri ranges from 0 to 100, and the higher the index value of a population more likely it is to take risks. A score of 50 is equivalent to a neutral country at risk.
With a final score of 39.4 Cafri, India Ranked seventh in the country table, behind the developed markets of Japan, Hong Kong, Australia, Singapore, South Korea and Taiwan. While the combined number Cafri may indicate that the average consumer in India continues to be more risk averse than many of its neighbors, breaking the response to individual aspects of risk reveals the dynamism present in the Indian market. Through key 4 response categories, consumers in India indicated that they were very fearful of the risks including financing and security of the race (X-rated and IX 11), neutral in health care costs (seventh) but the safest in the region with the lifestyle associated risk (first). In this last category is only allowed to bring all the countries surveyed in emerging Asia (China, Malaysia, Vietnam and Indonesia) in the consumers' appetite for risk
Amit Kalra, head of Swiss Re Economic Research & Consulting Mexico, wrote in the report that India's national eclectic mix of respondents demonstrated risk priorities of the unique qualities and challenges of the insurance market in India. "In Asia Pacific, 20 to 40 years of age in India are more willing to take risks in their lifestyle, such as the pursuit of extreme sports, working long hours, and live for today without worrying about future. However, they remain one of the least willing to take risks in his career (9 th) and finance (10). For example, 83 percent of respondents still believe that capital preservation as their top priority making an investment. This proportion is higher in the region, "said Karla.
This endemic based savings culture is slowly changing however, as rising health care costs to encourage more Indians to invest now in the market and consider the insurance coverage. According to the survey, 71 percent of respondents in India concerned about the inability to pay out of pocket medical expenses in case of a major long-term illness, injury or threat of transmission of the debts due to premature death. The study also found that 70 percent of respondents would not be able to keep pace with rising premiums in the future. Both percentages were higher than the averages Asia-Pacific 67 percent and 58 percent respectively.
According to this need for protection remarkable, a remarkable 78 percent of Indian respondents told Swiss Re, who were planning to have a life or health insurance policy in the next 12 months, the highest proportion of the Asia Pacific near Indonesia. Medical expenses and financial risk are fueling the need for a secure and innovative financial planning. When asked what would stop the Indians from buying insurance at the moment, 42 percent said that high prices were the problem. However, when subjects were presented with various insurance products of modern life, many admitted that they were really affordable and within the price range you are willing to pay. In fact, 81 percent said they would pay at or above the market value of a specified period of life insurance coverage. Lack of awareness of long-term medical coverage, so that premiums are locked in against inflation for several years has prevented similar positive response to health insurance. To encourage the purchase of insurance in India, the work to be done to overcome this barrier perceived cost.
Amit Kalra said that this disconnection is needed to be corrected because of insurance in India is not as expensive as people may perceive. "More education is needed to ensure consumers understand the value of insurance to protect against the price they pay," he wrote.
According to the survey, these consumers in India from 20 to 40, its main source of education about personal finance and investment is television, with a response of 71 percent (the highest proportion in the region), followed by agents and newspapers. When it comes time to actually make a purchase, the traditional players have kept the dominant channel for the purchase of life insurance and health, with 89 percent of the vote, followed by banks and independent financial advisors, finally.
Swiss Re's research revealed what insurers must do themselves to attract the next generation of consumers in India. According to the survey, the most important criterion for the Indians when choosing an insurance company is value for money (55 percent prefer), followed by a good reputation (52 percent) and finally the financial accuracy (42 percent). Respondents also expressed concern that insurers tend to exaggerate their investment products compared with the security plans and the customization of each customer and the service was very lacking. "Insurers must demonstrate the benefits of insurance and strong value propositions to meet the specific needs of consumers, which emphasize the value, reputation and financial solvency," he said Kalra.
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