Gurgaon, June 9, 2020: A recent survey on consumer sentiment conducted by Policybazaar.com, India’s largest online insurance marketplace, found that nearly two in three respondents were confident of their household expenses remaining stable and manageable over the next 12 months. This indicates that people have reasonable savings for the coming few months and are ready to make informed decisions when it comes to spending.
This online study conducted to understand consumer sentiment towards household finances, investments and insurance during the Covid-19 pandemic surveyed 14,624 Policybazaar.com users.
The study found that people seem well in control of their financial health but are extremely worried about the risk to their and family’s physical health. As a result, the perception of the importance of health and life insurance is now higher than ever. 51% of the respondents considered having an insurance cover important while nearly 80% said they were aware of the benefits of insurance especially during a pandemic.
Unlike in the past, insurance has now become a product that consumers are likely to buy without the need for a big sales push. Health insurance purchases doubled between March and May this year compared to the same period in 2019. Only 15% of the respondents said they were worried about a cash crunch. On the job security front, only 19% respondents indicated any anxiety about retaining their employment.
Commenting on the study findings, Sarbvir Singh, CEO, Policybazaar.com, said, “During times like these, it is important to understand people’s outlook towards personal finances, investment and spending. This study clearly points towards both term life and health insurance starting to become a cornerstone of personal financial planning in times of the Covid-19. The pandemic has definitely accelerated awareness about insurance in India where insurance penetration remains low even today.”
To understand people’s attitude towards long-term savings and investments during this period of uncertainty, the survey asked people about their intention to invest in various market instruments. Nearly 47% of the respondents felt this was a good time to invest to earn good returns. This indicates increased investment literacy among Indians as usually, the stock market’s rebound strongly after a fall during the times of a widespread health crisis or pandemic.