IRDAI’s initiative to spread awareness about insurance seems to have paid off. The latest IRDAI survey shows that six out of 10 people buy insurance policies due to its increasing popularity.
The National Council of Applied Economic Research (NCAER) carried out the survey for the insurance regulator. Close to 30,200 households, from across 29 states and union territories, participated in this survey.
Since 2009-10, IRDAI has undertaken various consumer education initiatives through print, electronic, and other media to spread awareness about insurance. The most recent one includes connecting to the aam aadmi through radio jingles. This initiative is currently on air and covers topics related to life insurance, motor insurance, health insurance, home insurance, policy renewals and mis-selling of products.
The second important factor that influences insurance buying decision is advice of agents. Over half of the respondents said they bought insurance on the advice of an agent.
Other factors influencing buying decisions are advertisements and advice of friends, relatives and neighbours.
In addition, a marginal percentage of investors said that they bought insurance policies directly through insurance companies. These respondents bought insurance policies by comparing premium rates and policy features.