80% of India’s insurance buying journey now happens online, Google-McKinsey report claims

Insurance buying in India is increasingly shifting towards online. According to a new study by Google, with McKinsey & Company as its knowledge partner, nearly 80% of India's insurance buying journey now happens online, with consumers using search engines and videos to research policies before approaching an advisor. The report also found that digital research directly influences 40% of health and life insurance sales.‘Decoding the DICA Consumer’ study shows an expanding category of purchasers who shop for insurance providers and filter options online before turning to human assistance to complete the purchase. The findings indicate that digital platforms are influencing insurance decisions, but customers still value a human adviser's input on policy wording, cover, and future financial security.Why Indians are buying insurance onlineThe report identifies these consumers as Digitally Influenced, Closed with Assistance (DICA) buyers. They research policies online, shortlist insurers and then approach advisors to validate their choices and understand policy details.Siddharth Shekar, Director, Google India, said, “The DICA consumer highlights that purchasing insurance in India is an intricate journey where no single touchpoint or advisor operates in isolation. When the digital ecosystem directly influences more than 40% of all insurance purchases the online shortlist becomes an important decisive factor. 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.”The report found that 78% of consumers narrow their choices to two or three insurance brands online before speaking to an advisor. More than 50% of consumers continue to prefer their original online shortlist even after consulting an agent.The findings indicate that advisors increasingly need to answer specific questions about coverage, policy exclusions, and service support rather than introduce buyers to insurance brands from scratch.Non-metro consumers and salaried professionals lead online researchOnline insurance research is not limited to consumers in metropolitan cities. According to the study, consumers in leading non-metro cities conduct roughly twice as much online research before purchasing a policy compared with the national average.Salaried professionals aged 25–35 represent the largest demographic driving this digital research. The group also shows higher engagement with comparison tools and policy explainers across age groups.The report calls on insurers to involve consumers at the research stage when they're considering options, rather than only through traditional sales channels.AI search and YouTube influence insurance decisionsAI-powered search tools and video content are helping consumers understand insurance products. The study found that longer queries account for 18% of insurance searches on Google, reflecting demand for information about specific coverage requirements and complicated policy terms.It also found that 41% of users use AI Overviews to compare options and establish their coverage requirements before approaching an insurer.Video is another important part of the buying journey. Approximately 60% of online insurance researchers use videos during their research, while insurance-related content on YouTube crossed 2.5 billion views in India over the past year. More than 15% of these views occurred on YouTube Connected TV, suggesting insurance research can also involve discussions among household members.Meanwhile, insurance mobile apps are seeing increased engagement for routine activities such as tracking policies and managing claims.Why insurance buyers still need human assistanceDespite the shift towards online research, the study found that fewer than 30% of buyers are comfortable purchasing high-value insurance policies entirely through digital checkout processes.Consumers still seek help understanding policy exclusions, confirming long-term financial security, and getting support during hospital claims. However, the transition from online research to offline sales is not always seamless.More than 40% of buyers said they were frustrated by having to repeat their requirements after being contacted as new leads. More than a third also cited generic sales scripts that did not reflect their specific needs.The report found that offline insurance purchases influenced by online research generate policy premiums approximately 40% higher than traditional sales.Parthanil Ghosh, Managing Director and CEO, HDFC ERGO General Insurance, said, “The emergence of the DICA consumers will boost awareness and accessibility in the insurance sector. 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.”Sumit Madan, Managing Director and CEO, Axis Max Life Insurance, said, “The future of insurance distribution will not be defined by where customers buy, but by how effectively we connect digital discovery with trusted advice. When more than 40% of policies are already digitally influenced, the industry's next growth opportunity lies in converting informed intent into meaningful protection.”The study's findings are based on a survey of 1,039 insurance consumers; aggregated, masked lead-to-conversion analysis across life and health insurers; interviews with industry advisors and distribution platforms; and insights from Google and McKinsey.You use AI every day. Now get your AI Quotient. Take the AIQ test.