Customer sentiment shifting towards term insurance amid Covid-19 in UAE: Policybazaar.ae survey

Consumers feel a greater need for term insurance; more than 60% mulling insurance purchase

  

Dubai: A recent survey on consumer sentiment conducted by PolicyBazaar.ae, a lending and insurance marketplace group venture of PolicyBazaar, found a majority of people are unaware of the features and benefits of term insurance, the most simple and no-frills of insurance products. Only 20% of the respondents knew that term insurance plans cover pandemics like Covid-19. The online survey conducted during the month of May among PolicyBazaar.ae users points to a lack of adequate understanding of pure life insurance cover.

Nearly two-thirds of the respondents had never bought term insurance. The reasons for their reluctance highlight the widespread misconceptions about term insurance. 38% of the respondents stayed away because term insurance offered no returns; 31% because their families stayed away from them in another country; and nearly 20% because they felt it was too expensive. A smaller proportion were concerned that insurance firms do not honor claims. However, the Covid-19 pandemic seems to be forcing a rethink. About a third of the respondents said they plan to buy term insurance in the next 12 months and 44% said they would consider investing in the same.

Commenting on the findings, Neeraj Gupta, CEO, Policybazaar.ae, said, “The current pandemic is forcing a change in consumer attitude towards insurance. This is a positive development that will increase pure term life insurance penetration in the UAE, which currently stands at around 0.7%.”

"Our long-term intent remains raising awareness around the death, disease and disability products in the region, and we will continue to work in that direction to educate the consumer about the true benefits of term life insurance, so that people make an informed and smarter decision for their family future," 

Unlike in the past, insurance has now become a product that consumers are likely to buy without the need for a big sales push. Term insurance queries on PolicyBazaar.ae website doubled between March and May this year compared to the same period in 2019.

About Policybazaar.ae

Policybazaar.ae started in 2018 is Policybazaar Group's first overseas venture and is an online financial products marketplace aimed to educate people on the importance of insurance as a protection tool and becoming a one-stop-shop for consumers’ personal finance needs in the UAE market. Policybazaar.ae currently partners with more than 35+ insurance and banking partners with 400+ products on offer ranging from new-age life insurance, health insurance, motor insurance, personal loans, car loans, home loans to credit cards, and more. Policybazaar.ae’s web traffic has increased 10X in the last one year.

PolicyBazaar.com is India’s largest insurance marketplace. It has backing from a host of investors including the likes of Soft Bank, InfoEdge (Naukri.com), Temasek, Tiger Global Management, True North, Premji  Invest, besides investments from other PE funds and family offices. The portal started with a purpose to educate people on insurance products and has had a significant influence on how insurance is bought in India. It has helped in driving penetration of pure life insurance, health insurance, and such products which were barely bought earlier.

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