Insurance customers struggle with complex policies: Praxis Global Alliance report
A study by Praxis Global Alliance reveals that most insurance customers in India find policies complex, face delays and lack transparency in claims, and often receive less than the claimed amount.
Hyderabad: A new independent study by Praxis Global Alliance, a management consulting firm, covering 1,203 motor and health insurance customers revealed a significant gap between what the intermediary model promises and what customers actually receive.
The report, ‘General Insurance Industry Economics Uplift’, said 83 percent of consumers find buying insurance complex. Two-thirds rely on agents because they cannot understand the product, not out of loyalty or preference, it said.
Nearly 40 percent of customers who filed a claim faced long delays in turnaround times and lack of transparency during settlement. More than 50 percent of health insurance claimants did not receive the full amount they claimed, the report found.
Agents were frequently cited as unavailable at the claims stage, especially when customers needed their support most. Despite these structural constraints, 52 percent of motor customers and 54 percent of health customers said they would switch to buying directly from an insurer if service quality was guaranteed, according to the report.
