Nearly 80% of the insurance-buying journey in India now unfolds online, with consumers using search and video to evaluate policies before contacting an agent. A new study by Google, with McKinsey & Company as knowledge partner, finds that this digital research influences 40% of health and life insurance sales.
Titled Decoding the DICA Consumer, the study identifies a fast-growing segment of buyers called Digitally Influenced, Closed with Assistance (DICA). These consumers research policies online and narrow their choices before turning to advisors to validate their decisions.
DICA buyers account for four times the volume of purely digital sales, making the transition from online research to offline assistance a key growth opportunity for the insurance industry.
“Purchasing insurance in India is an intricate journey where no single touchpoint or advisor operates in isolation,” said Siddharth Shekar, director at Google India. Bridging the gap between online research and offline advice is now a key lever for increasing insurance penetration and creating value, he added.
Non-metro consumers and young professionals lead online research
Consumers in major non-metro cities conduct roughly twice as much online research before buying a policy as the national average.
Salaried professionals aged 25–35 are the largest group driving this research, showing the highest engagement with comparison tools and policy explainers across age groups.
AI and video help consumers understand insurance
Consumers are increasingly using AI-powered search to understand complex insurance terms. Long queries account for 18% of insurance searches on Google, while 41% of users use AI Overviews to compare options and clarify their coverage requirements.
About 60% of online insurance researchers use video, and insurance-related views on YouTube crossed 2.5 billion over the past year. More than 15% of these views came through YouTube Connected TV, turning insurance research into a shared household activity.
Most buyers shortlist two or three insurers
In a market with more than 60 insurers, 78% of consumers narrow their choices to two or three brands online before speaking to an advisor. More than half stick with their original shortlist even after consulting an agent.
These buyers turn to advisors to assess their research, understand policy fine print and gain confidence in the continuity of service.
Buyers frustrated by disconnected sales processes
Despite doing much of their research online, fewer than 30% of buyers are comfortable purchasing high-value policies entirely online.
Instead, they seek advisors to confirm the long-term safety of their investment, understand exclusions and secure human assistance during hospital claims.
However, more than 40% of consumers are frustrated by having to start afresh as anonymous leads and repeat their requirements when they contact an advisor. More than a third also complain about generic sales pitches that fail to account for their individual needs.
The report says insurers need to establish a strong online presence early in the buying process and connect their digital platforms with their agency networks, allowing advisors to pick up where customers left off.
The commercial opportunity is significant: insurance purchases influenced by online research generate policy premiums about 40% higher than traditional sales, according to the study.
Parthanil Ghosh, managing director and CEO of HDFC ERGO General Insurance, said a seamless experience across advisors, websites, mobile apps and other digital platforms could build consumer confidence and trust, helping increase insurance penetration in India.
Sumit Madan, managing director and CEO of Axis Max Life Insurance, said the future of insurance distribution would depend not on where customers buy policies, but on how effectively insurers connect online discovery with trusted advice.
The findings are based on a survey of 1,039 insurance consumers, aggregated and anonymised lead-to-conversion data from life and health insurers, in-depth interviews with industry advisors and distribution platforms, and insights from Google and McKinsey.