India’s life insurance sector is experiencing significant growth, driven by the country’s vast population of approximately 1.4 billion people. As of 2023, around 4% of the population, or about 56 million individuals, have life insurance coverage, indicating substantial room for expansion in this market.

In FY23, the Life Insurance Corporation (LIC) of India issued over 20.4 million new individual policies. In comparison, private insurers issued around eight million policies. Overall, there were over 28 million new individual policies issued across the country that year.

In FY24 (Until January) Among the private players, SBI Life, HDFC Life and ICICI Prudential Life led the industry in premium collection. SBI Life collected Rs. 31,218 crore (USD 3.75 billion) premium while HDFC Life and ICICI Prudential Life received Rs. 22,744 crore (USD 2.73 billion) and Rs. 13,091 crore (USD 1.57 billion), respectively.

The industry is poised for further growth, with the market projected to expand at a compound annual growth rate (CAGR) of 9%, reaching a size of approximately INR 12.0 trillion ($146.5 billion) by 2028, reflecting significant growth from INR 8.5 trillion in 2022 (IBEF, Global data). These trends underscore the immense potential for digital innovation and increased penetration in India’s life insurance industry.

Our report, “CX benchmark of top 8 life insurance service providers India 2024,” delves into how industry leaders are revolutionizing the insurance sector.

Explore with us as we delve into the practices of these leading life insurance providers. See how these industry leaders are transforming the life insurance experience, enhancing accessibility, efficiency, and customer focus in the digital age.

Introduction

Life insurance has undergone a digital transformation, making it easier and more convenient than ever to secure financial protection. Customers can now explore policies, get instant quotes, and complete the entire purchase process online, without the hassle of paperwork or branch visits.

With secure digital verification methods, like document uploads, Aadhaar verification, and e-signatures, simplify the process while ensuring security, the process is streamlined and user-friendly, allowing individuals to protect their loved ones quickly and efficiently from the comfort of their homes.

Twimbit’s CX benchmarking research methodology

Top 8 life insurance service providers in India for purchasing a life insurance policy

The life insurance service providers are evaluated based on the following five key metrics:

Discoverability

Discoverability refers to how easily users can find and access specific features, information, or actions on a website or application.

1. Channels to purchase life insurance– Allow customers to purchase life insurance via public website, mobile application, whatsapp and chatbot.
2. Clear CTA to check premium on public website– Use a clear, eye-catching button labeled “Check Premium” prominently on the homepage and relevant insurance product pages.
3. Number of CTAs to check premium on a webpage– Provide more than 5 CTAs to check premium/get a quote on public website.

ICICI Prudential provides an engaging experience with gamified insurance details, over five CTAs for premium checks, and easy navigation.

Premium calculation process

It refers to the method and user experience for determining the cost of an insurance policy.

1. Number of input fields to check premium– Reduce the manual input required for users to check premium to only 3 essential fields.
2. Use of labels and icons– Clear, descriptive labels and intuitive icons.
3. Gender inclusivity option– Include options beyond traditional gender categories.
4. Option to Resume the Application: Allow users to save progress and return later.
5. Option to Calculate Premium Without Sharing Personal Details– Require only key details like age, coverage amount, and policy term for the calculation.

HDFC Life excels with minimal input fields, clear labels and icons, and the option to resume applications, making for a streamlined and user-friendly experience.

Information availability

It refers to the accessibility and comprehensiveness of details provided on a website or application.

1. Different Types of Plans– Clearly categorize and present various life insurance plans, such as term, whole life, ULIPs, and retirement plans, to help users easily find and compare options.
2. Category-Wise Display of Plans– Organize plans into distinct categories (e.g., savings, investment, child, retirement) to simplify navigation.
3. Information Related to Life Insurance Policy– Provide comprehensive details about each policy, including coverage, benefits, exclusions, and premium structures.
4. Glossary List of Important Terminologies– Include an alphabetical glossary of key insurance terms, with brief definitions and supplementary videos.
5. Option to Download Brochure– Offer downloadable brochures for each plan, giving users a convenient way to review detailed information offline.
6. FAQs– Maintain a well-organized FAQ section addressing common questions about policies, premiums, and claims, categorized for easy access.
7. Customer Support– Provide accessible customer support options, such as live chat, email, or phone.
8. Disclaimer– Include a clear disclaimer outlining the limitations and conditions of the information provided.
9. Customer Feedback– Implement a system for collecting and reviewing customer feedback to continually improve the customer experience.

ICICI Prudential excels by offering intuitive, gamified insurance details in a narrative format.

Application process

It refers to the steps and procedures customers follow to apply for life insurance. Details About the Plan: Comprehensive coverage, benefits, and terms.

1. Plan Summary Details– Overview of key features and benefits.
2. Add-Ons/Riders to Combine with the Plan– Optional enhancements and additional coverage.
3. Documents Required– List of necessary documentation for application.
4. Details of Documents Required– Specific document numbers or types needed.
5. File Format Compatibility and Support– Maximum File Size: Largest allowed file size for uploads.
6. File Format Compatibility and Support– Supported Formats: Acceptable file types for submissions.
7. Total Number of Steps Involved– Total steps in completing the application process.
8. CKYC/KYC (Number of Input Fields)– Number of fields required for identity verification.
9. Any Other Verification Method– Additional methods for verifying applicant identity.

ICICI Prudential, Bajaj Allianz and HDFC Life offer easy-to-understand application process with 3-4 simple steps.

Payment summary details

It provides the tax amount along with the base premium in the payment summary.

1. Payment Flexibility Option– Option to fill form first or pay first.
2. Availability of Payment Methods– Multiple payment options available.
3. Payment Summary Details– Clear overview of charges and transactions.

ICICI Prudential offers 10 and HDFC Life offers 8 different payment methods.

Best practices and learnings from peer regions

Leading life insurance providers have mastered the art of creating visually appealing and user-friendly digital experiences. Their designs are not only attractive but also strategically use white space to maintain a clean and uncluttered interface. This approach makes key information stand out and ensures that content is presented in a clear and concise manner.

The result is an intuitive, user-friendly interface that simplifies navigation and enhances overall satisfaction. By adopting these design principles, insurers can significantly improve user engagement and streamline the application process.

Leading life insurance providers offer valuable lessons for digital transformation:

Clear Filtering and Comparison: Use advanced tools to display plan differences clearly, helping users make informed decisions.

Simplified Applications: Reduce manual input with intuitive sliders for coverage and policy terms, making the application process more user-friendly.

Progress Indicators: Implement progress bars and supplementary resources to keep users informed and engaged throughout their journey.

Conclusion

In the competitive landscape of life insurance, a well-designed and intuitive digital experience is a powerful differentiator. By focusing on streamlined interfaces, comprehensive comparison tools, and minimizing manual inputs, insurers can simplify complex processes and make the journey more engaging for users. Clear visual presentation, effective use of white space, and strategically placed call-to-actions (CTAs) are crucial for guiding users effortlessly through key decisions.

To further enhance the digital life insurance experience, consider the following recommendations:

1. Streamlined Input Options: Reduce the number of manual input fields by offering predefined choices for common details like occupation and salary range, making the process quicker and more user-friendly.
2. Progress Indicators and Real-Time Assistance: Incorporate progress indicators and AI-powered virtual assistants that provide step-by-step guidance, ensuring customers stay informed and supported throughout the application journey.
3. Enhanced Comparison Tools: Implement detailed filtering and comparison features that allow users to easily contrast different policies based on coverage, benefits, and add-ons.
4. Category-Wise FAQs and Glossary: Organize FAQs and key terminologies into categories (e.g., savings plans, retirement, child policies) with easy navigation, supplemented by explanatory videos.
5. Flexible Completion Options: Give customers the flexibility to decide whether to fill out forms first or make payments first, depending on their convenience.
6. Seamless Rider Addition: Ensure adding riders or modifying policy options is effortless, with a single-click process to enhance customization.