The pandemic has radically changed things for individuals and organizations around the world. Habits, expectations and needs have changed, forcing organizations to make customer comfort the core of their strategy. Over the past 18 months, consumer behavior has changed dramatically, with the Internet gaining popularity for all financial products.
We did a study – Life Freedom Index (LFI) – focused on the situation during the pandemic. LFI assessed the state of financial freedom of urban Indian consumers, their product knowledge, the adequacy of financial planning and their current state of financial freedom. Nielsen conducted the study in July 2021 in 14 cities, covering nearly 2,000 consumers.
The interesting ideas were as follows:
Consumers seem less confident about financial preparation.
Subways and nuclear families are more affected, while small towns and mixed families are more stable.
Financial health has become a priority: People seem to be worried about growth, jobs and the accumulation of debt due to the loss of income.
Covid-19 has resulted in a transformation in customer engagement with life insurance, resulting in high product familiarity and preference.
These findings highlight the impact of a few habits that have long prevailed – lack of insurance awareness, purchasing insufficient coverage, lack of preparation for an eventuality such as loss of income or loss of life.
The importance of insurance
Customers are now showing increased interest in life insurance. Medicare has also grown in importance as people realize that a health emergency can mean a financial setback for the family. While this has been a reality for those suffering the financial impact of cancer or heart disease, a large portion of the population has faced it due to Covid-19.
Adequate life insurance helps families cope with the financial impact of losing breadwinners, but many did not anticipate it. Today, individuals are buying life insurance for the first time; and existing clients revise the amount of coverage to ensure adequate security for their loved ones.
Liabilities such as loans and major expenses such as child rearing and marriage cannot be ignored when planning for financial emergencies. Inflation impacts the quality of life over time. The rule of thumb of buying life coverage of at least 10 times annual income should not be overlooked.