80% of insurance-buying journey now unfolds online: Google study

These consumers research and prioritise their options online before turning to advisors to validate their choices and help them make a final decision. Despite a market comprising more than 60 life and non-life insurers, 78% of consumers narrow their online evaluation to just two or three brands before speaking to an advisor. “This fundamentally shifts the dynamics of offline sales: over 50% of consumers stand by their original digital shortlist after speaking with an agent, effectively pre-locking their brand conviction.”

The findings suggest that consumers increasingly approach advisors to validate their research, clarify policy details, and seek assurance on service continuity, rather than relying on them to introduce brands. “When the digital ecosystem directly influences more than 40% of all insurance purchases the online shortlist becomes an important decisive factor," said Siddharth Shekar, director, Google India.

According to him, closing the gap between a consumer's digital evaluation and their offline advisory experience is now the biggest lever for insurance penetration and value creation. Digital research before purchase is no longer limited to younger consumers in metropolitan cities. Consumers in leading non-metro cities conduct roughly twice as much online research before buying a policy compared with the national average, the study found.

Salaried professionals aged 25–35 form the largest demographic driving this trend, recording the highest engagement with comparison tools and policy explainers among all age groups. Consumers are also increasingly using AI-powered search to understand complex insurance terms, moving beyond general browsing to develop more informed shortlists. "Long queries now account for 18% of insurance searches on Google, with 41% of users using AI Overviews to compare options and firm up their coverage requirements upfront," the study said.

However, digital research has not eliminated the need for human assistance. Fewer than 30% of buyers are comfortable purchasing high-value policies entirely through digital channels, the study found. Consumers continue to rely on advisors to seek reassurance about long-term capital safety, obtain human support during hospital claims and clarify policy exclusions. ”For insurers, enabling this journey seamlessly across their omnichannel distribution network like advisors, websites, mobile apps and other digital platforms, can help in building consumer confidence and trust, and thereby increase insurance penetration in India,” said Parthanil Ghosh, MD & Chief Executive, HDFC ERGO General Insurance.

Sumit Madan, managing director and CEO, Axis Max Life Insurance, said, when more than 40% of policies are already digitally influenced, the industry's next growth opportunity lies in converting informed intent into meaningful protection.