Understanding the Gap: Why 40% of Non-Life Policyholders Struggle with Life Insurance

According to the Insurance CuES Report 2025 by Hansa Research, a notable 40% of individuals who own non-life insurance policies—such as health or motor insurance—report difficulty in comprehending life insurance products. The findings are based on insights collected from 3,600 insurance customers across life and non-life segments.

The Call for Simpler Communication

One of the key observations from the report is a widespread demand for simplification. Policyholders believe life insurance products should come with clear, concise information regarding features, benefits, and the often-overlooked terms and conditions. This sentiment suggests that greater transparency and user-friendly language may help bridge the comprehension gap.

Understanding Why People Buy Life Insurance

While life insurance is generally purchased to secure the future of one’s family, motivations vary with age and circumstance. The survey highlights that:

• Many individuals see it as a means to provide financial safety for their loved ones.

• A significant portion, especially those aged 40 and above, buy policies to support long-term goals like retirement planning or funding their children’s education.

Millennials Seek Value and Flexibility

Millennials, as a consumer group, display different behavioural patterns compared to older generations. They are more willing to switch insurance providers in search of:

• Better pricing and affordability

• Seamless digital access to products and services

• 24/7 customer support

• Faster, more transparent processes

Their expectations are shaped by convenience and speed—traits they find essential in all financial services, including insurance.

Women Policyholders Have Specific Priorities

The report notes that women tend to prioritise different aspects when choosing life insurance. Their preferences often include:

• Savings-oriented plans

• Future income security

• Provisions for child education

• Affordable premiums

• A smooth, hassle-free onboarding experience

• Consistent communication with insurance advisors

These insights underline the need for tailored offerings and better client servicing in a traditionally male-dominated sector.

Read More: Different Types of Insurance Policies. 

Digital Services: A Standard Expectation

A noteworthy trend is that digital-first services—once considered innovative—are now regarded as standard. Online policy access, digital customer support, and app-based service interactions have become baseline expectations for all customers, irrespective of age or gender.

Conclusion 

By focusing on these findings, the Insurance CuES Report 2025 sheds light on evolving customer needs in the insurance sector and the importance of accessibility, clarity, and service personalisation.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.