Hansa Research: ICICI Prudential Life Insurance top-performing brand

Hansa Research has recently released its much-awaited annual syndicated report, Insurance CuES 2023, which captures exciting insights about consumers’ perceptions and experiences with life insurance brands. This year, the Insurance CuES 2023 report has ranked ICICI Prudential Life Insurance as the best life insurance provider in India, followed by HDFC Life Insurance and Max Life Insurance.

Customers rated these top-performing brands significantly higher on various parameters such as digital experience, ease of dealing, easy documentation, communication, and responsiveness of their distribution channels. As a result, they have taken the top spots among all the life insurance providers, with impressive NPS scores of 62, 59, and 59 respectively. Players like Tata AIA Life Insurance and SBI Life Insurance have also improved their ranking. According to the report, the industry's Net Promoter Score is now 54, up from 48 in 2022.

An additional noteworthy finding is that while LIC retains the highest brand awareness, it has slipped marginally in terms of advocacy and has been displaced in the overall ranking for the year 2022. Other brands that score high on brand awareness include SBI Life Insurance, HDFC Life Insurance, Bajaj Allianz Life Insurance, and ICICI Prudential Life Insurance.

Commenting on the findings of the CuES 2023 study, Praveen Nijhara, CEO, Hansa Research said, “The Life Insurance Industry continues to improve customer experience, but the magnitude may be narrowing due to the saturation of technology-supported improvements. Companies are also dealing with increased complexity as a result of omnichannel communication. To cater to the new generations, digital transformation and other customer-centric technologies will continue to play a key role in ensuring hassle-free, convenient, and on-demand services to enhance customer engagement and make it easier for customers to interact with the company.”

“Our study suggests that the life insurance companies that provide an advice-driven approach to support customers' broader financial priorities, including the well-being of their families, are likely to emerge as the "winners" of tomorrow,” he further added.

Considering the importance of the CuES 2023 study, Piyali Chatterjee, Senior Vice President - CX, Hansa Research said, “The life insurance market in India is highly competitive, driven by rising demand for insurance products, increasing awareness of financial planning, and the government’s push for financial inclusion. Companies need to adopt innovative strategies to grow their market share rather than relying solely on their strong brand equity, extensive distribution network, and diverse product portfolio."

Our report identifies three major barriers to customers’ life insurance purchasing decisions: behavioral biases/ perceived need, economic constraints/affordability, and perceived difficulty in purchase. With the increase in premiums over the last year, affordability has become a more pressing issue, which is exacerbated for women.

Among the numerous insights and trends uncovered in this report, specific Industry takeaways that are worth highlighting.

1. Recognize the Generational Divide, Start focusing on the Youth: Given the youth bulge in our country, the industry needs to increase contact with the younger generation, which is showing a growing interest in insurance. It is also important that the brand aligns itself with the customer’s life stage. To maximize growth opportunities, the brand must evolve alongside the consumer as he or she progresses through various life stages. According to our data, those married with children have nearly 2.5 times the penetration of life insurance as those who are single or married without children.

2. Expectations & Needs vary by Gender: Women have listed affordability as one of the key barriers to having Life Insurance. And those who have policies have listed their preference for monthly premium payment terms as much higher as compared to men.

3. Going forward build on Simplicity, Transparency, and Customization/ Personalization: These are becoming more important and will play a key role in differentiating between brands.

4. Stay in touch to build a connect: According to the study, 22% of customers cited 'Company does not keep in touch' as a potential reason for leaving. Direct contact at regular intervals can be more effective than impersonal digital channels alone in preventing lapse. According to Insurance CuES 2023 data, 8 out of 10 customers would like the Bank RM/Agent to call/meet them after purchase, at least once every 6 months.

5. Recalibrate your direct-to-consumer distribution mechanisms, as physical consultative advice continues to remain a highly-desired element even when making an online purchase.

Methodology: Approximately 3300+ life insurance policy holders, pan India were asked a series of questions relating to their experience as a policy holder, including the Net Promoter Question. This is an annual survey which covers 12 brands each year and 2023 is the 3rd edition. A separate sample of non-customers of life insurance were also surveyed. Insurance CuES 2023, which captures exciting insights about the perception and purchase of life insurance in India, ranks Insurers by Net Promoter Score (NPS).