The insurance market in India is seen as an anomaly compared to the rest of the world, because the domestic focus is more on returns on investment than on protection, according to Ms Anjali Malhotra, chief customer, marketing and digital officer of Aviva Life Insurance.
“In an under-penetrated market like India, the primary purpose of protection gets a little bit compromised in favour of the growth of money, and that’s an anomaly,” she said.
However, Ms Malhotra added that this trend is slowly changing with millennials in India more aware of the need for protection than their parents were at the same age, reports The Hindu.
“People are recognising the need for protection products at earlier ages, so the median age of consumption of term insurance is somewhat coming down,” she said. “Where earlier it was above 30, it’s now below 30. People are starting to buy these products as soon as they get employed.
“Our financial literacy survey that we took last year shows that millennials are more aware of the need for and importance of insurance than their parents were at that age,” she added.
Millennials are accessing insurance online rather than through an agent. Also, with greater life expectancy, people are looking for longer-term products as opposed to those that mature at 65-70 years of age.