Exploring Consumer Preferences and Decision-Making Processes in the Indian General Insurance Market

Abstract

In this study, we have analysed the determinants of consumer insurance premium expenditures in India using regional variation in insurance market characteristics, as well as demographic and economic influences. This finding, that of the significant geographic differences in spending behaviors, suggests important implications for the effects of local economic conditions and possibly cultural attitudes on insurance choices, which is supported by the findings of rough statistical significance from ANOVA and regression results. So descriptive statistics give us an average spending of ₹40,000 with a decent dispersion, and the distribution is also well behaved around this mean, revealing that different consumers spend differently. Likewise, age and income significantly influence spending on life insurance premiums, as older individuals and those with higher income spend more on such products both now and six months from now. The results of this research provide valuable indicators for insurance providers, underlining the need to adapt offerings and marketing approaches according to the regional or demographic groups they are intended for. It increases the consumer behavior knowledge within the insurance industry and lays a solid foundation for strategic decisions and further research efforts.