One of the defining characteristics of mature consumer markets is not simply the abundance of products, but the quality of consumer decision-making. Across sectors, rising financial awareness, easier access to information and digital discovery are changing what people choose to buy and how they choose to buy. Consumers now expect to evaluate multiple options, understand trade-offs and make decisions based on their individual needs rather than limited visibility.
Well-functioning markets around the world have something in common – informed choices. Insurance is undergoing the same shift. As customers become more informed and digitally engaged, purchasing decisions are becoming more deliberate, more comparison-led and ultimately more aligned with individual protection needs. While not necessarily the cheapest, the chosen product is often the one delivers the greatest value.
The data is starting to reflect this shift. Nearly 75% of customers on our platform now compare at least three plans before choosing one.
That effort is certainly paying off. Customers who compare policies end up paying, on average, at least 20 per cent lower premiums for similar levels of coverage than those who buy without comparison. In an industry that still suffers from low awareness and limited product understanding, this comes as a welcome change.
Here’s what the data tells us about changing consumer outlook:
Amid rising healthcare costs, consumers want to better understand the quality of financial protection they are signing up for. Two policies may appear similar on paper, but they can actually differ significantly.
For instance, the premium for a ₹10 lakh family floater health plan for a young family of 3 in Delhi ranges from ₹773 to ₹2,426 per month, which means ~68% difference in price.
This is also visible among senior citizen plans. For a 62-year-old couple in Delhi with pre-existing conditions, the range is from ₹2,423 to ₹5,562 per month, which shows close to 60% variation in premium from options available to them.
The variation comes from factors like whether the policy has room-rent limits, co-payment clauses, restoration benefits, and optional riders, among others.
Similarly, when it comes to term insurance, age and habits can make all the difference.
For a 30-year-old salaried non-smoker seeking ₹1 crore cover until age 60, monthly premiums can range from ~₹635 to ₹958, representing a difference of about 50%. For a 30-year-old woman seeking ₹1 crore cover, monthly premiums range from ₹551 to ₹812, while for a 35-year-old woman, premiums range from ₹633 to ₹975 for a similar profile.
Some interesting trends come to light when we analyse these buying patterns. In health insurance, first-time buyers tend to be more price-sensitive, and use comparison primarily to reduce premiums. Repeat buyers, however, engage more deeply with features, claims experience, and long-term value. Comparison engagement is highest among customers aged 28-45, particularly families. This group reflects a segment that is both digitally active and financially conscious. Preferred network, deductibles, co-pay, and single private room are add-ons or features that are most commonly traded off for lower premiums.
In term insurance, claim settlement indicators emerge as the single most influential comparison feature among buyers. Claim settlement ratios are an important measure of confidence that their family’s claim will be honoured even in their absence.
When customers make informed choices, they look for better value for money. So, the market forces respond by improving product quality, increasing affordability, simplifying the offering, and most importantly, strengthening the claims experience.
(The author is Chief Business Officer, General Insurance, Policybazaar)
Published – August 24, 2026 06:24 am IST
