Informed consumers can shape insurance market, data shows

Nearly 75% of customers on the Policybazaar platform now compare at least three insurance plans before choosing one, according to data shared by the company's Chief Business Officer for General Insurance. Customers who compare policies pay on average at least 20% lower premiums for similar coverage than those who buy without comparison.

The data highlights wide price variation in health insurance. A Rs 10 lakh family floater health plan for a young family of three in Delhi ranges from Rs 773 to Rs 2,426 per month, a difference of about 68%. For a 62-year-old couple in Delhi with pre-existing conditions, monthly premiums range from Rs 2,423 to Rs 5,562, a variation of close to 60%. In term insurance, a 30-year-old salaried non-smoker seeking Rs 1 crore cover until age 60 sees monthly premiums ranging from approximately Rs 635 to Rs 958.

First-time health insurance buyers tend to be more price-sensitive and use comparison to reduce premiums, while repeat buyers focus more on features, claims experience, and long-term value. Comparison engagement is highest among customers aged 28-45, particularly families. In term insurance, claim settlement ratios emerge as the most influential factor for buyers.