Digital channels are playing an increasingly important role in India’s insurance buying journey, with digitally influenced customers generating 40% higher policy premiums than traditional offline buyers, according to a new research report. The findings come from the 46-page “Decoding the DICA Consumer” report, prepared from research conducted by Google with McKinsey & Company as knowledge partner.
The study identifies a growing category of consumers known as DICA — Digitally Influenced, Closed with Assistance. While customers increasingly use online channels to research insurance products, fewer than 30% complete the purchase entirely online. Most still seek human assistance before finalising their policies.
Among more than 60 insurers, 78% of consumers reportedly narrow their choices to two or three brands before speaking with an advisor. More than half retain their shortlist after the advisor interaction, indicating that much of the brand consideration occurs before the traditional sales conversation.
The study, based on 1,039 insurance consumers, anonymised lead-to-conversion data from life and health insurers, and interviews with advisors and distribution platforms, suggests that customers increasingly use advisors to validate their research, understand policy terms and assess service continuity.
For insurers, the findings point towards a hybrid distribution model in which digital education and discovery are combined with personalised human advice. The challenge is therefore not simply increasing online sales, but redesigning the customer journey around how consumers now research and purchase insurance.
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