Tier 2, 3 cities see demand for new era products like cyber insurance: Report

There is a big market opportunity for new age insurance products like cyber insurance, especially in Tier 2 and 3 cities, according to an online survey by Policybazaar.

The results showed that around 23% of respondents had a cyber insurance policy in place. This represents a significant portion of cybersecurity coverage in a country like India where the penetration of fundamental products like life and health insurance is still low.

Policybazaar conducted the survey to closely analyze consumer awareness levels and adoption of emerging protection products in India to observe National Insurance Awareness Day 2022. The brand surveyed over 4,500 of its customers and app/website visitors for relatively lesser-known products, including cyber insurance, mental health insurance, home insurance, and pet insurance.

The overall survey findings revealed a broad scope of awareness and purchase consideration for these products, with cyber insurance being an exception.

Another remarkable trend seen here is that almost 48% of respondents in Tier 2 and Tier 3 cities had purchased or shown a willingness to purchase insurance, compared to 36% in Tier 1 cities. The results clearly establish a parallel between growing Internet consumption in small towns in India and very similar levels of awareness to protect this consumption.

Although still in its infancy, cyber insurance appears to be the next big opportunity for the insurance industry, according to the survey results. At 31% and 29%, the highest number of respondents from Tier 2 and 3 cities respectively indicated the propensity to purchase cyber insurance, compared to 16% in Tier 1 cities. a police, 20% of respondents were from Tier 1 cities, while 17% were from Tier 2 and 3 cities. The figures represent a growing level of awareness about effectively countering intangible threats to critical digital assets across India.

Besides the potential opportunity in small towns, another interesting trend that emerged was the propensity to purchase family cyber protection plans. While the highest number of 45% of insured customers purchased family plans, while 35% purchased individual plans and 20% were covered by corporate plans. Moreover, even among non-shoppers, 53% expressed an interest in purchasing family plans, which is the highest of all. This implies an apparent preference for comprehensive all-encompassing protection not only for individual cybersecurity, but also for the whole family.

Nevertheless, it cannot be denied that there is still a field of coverage here. Nearly 20% of all respondents suffered financial loss due to cybercrime and of these, only 24% ended up buying the policy and 39% did not buy or consider buying one. . Financial loss due to unauthorized transactions emerged as the threat that most respondents (57%) wanted to cover through cyber insurance.

To subscribe to Mint Bulletins

* Enter a valid email

* Thank you for subscribing to our newsletter.

Comments are closed.