Cyber insurance is gradually emerging as a new must-have in the digital age. Though still in nascent stages, cyber insurance seems to be the next big opportunity for the insurance industry as there is a great market opportunity for the new-age insurance product, especially in tier- 2 & 3 cities, revealed an online survey by Policybazaar.
According to the survey, at 31 percent and 29 per cent, the highest number of respondents from tier-2 and 3 cities respectively indicated the propensity to buy cyber insurance as opposed to 16 per cent in tier-1 cities. However, out of those who had purchased a policy, 20 per cent of respondents belonged to tier-1 cities, while 17% belonged to tier-2 & 3 cities.
Inclination towards family cyber protection plans emerged as another interesting trend in the survey. While 45 per cent of insured customers purchased family plans, 35 per cent purchased individual plans and 20 per cent were covered under corporate plans. Not only this, but 53 per cent of non-purchasers also showed an interest in buying family plans, which is the highest among all.
Nearly 20 per cent of overall respondents had suffered a financial loss due to cybercrime and out of those, only 24 per cent ended up buying the policy.
Financial loss due to unauthorised transactions emerged to be the threat that most respondents (57 per cent) wanted to cover through cyber insurance.
Policybazaar conducted the survey to analyse consumer awareness levels and uptake of emerging protection products in India.
The brand surveyed over 4500 of its customers and app/website visitors regarding relatively lesser-known products including cyber insurance, mental health insurance, home insurance and pet insurance.
The survey depicted that around 23 per cent of respondents had a cyber insurance policy in place.
Another remarkable trend was that nearly 48% of respondents in tier 2 & 3 cities had bought or showed the willingness to buy insurance, as opposed to 36% in tier-1 cities.
Mental health: A growing scope of awareness and coverage
The survey revealed that awareness of mental health covered under a comprehensive health insurance policy still has a long way to go. While 60 per cent of the respondents were covered under health insurance, which by default covered mental health, only 26 per cent out of those insured were aware of this coverage.
Also Read | ICICI Lombard partners with Airtel Payments Bank to offer ‘Cyber Insurance’ to customers
Home insurance: Varying needs for protection across geographies
The survey projected a lower level of awareness and purchase propensity in the home insurance segment. Only 10 per cent of the respondents were aware that home insurance could also be purchased by tenants and not just home-owners. 74 per cent respondents did not have a home insurance policy, and merely 25 per cent had considered buying one. Those who purchased or considered buying a policy showed a varying set of preferences for coverage.
Pet insurance: Stark contrast between consideration and purchase
The pet insurance segment witnessed a stark disparity between purchase consideration and actual purchase. Even though as many as 70 per cent of the pet owners considered buying a policy, only 10 per cent of them actually bought one. While the pet insurance penetration overall was significantly low, among the buyers, tier-2 respondents ranked the highest with 10 percent.
