Decoded! Indian consumers mindset during COVID-19 crisis - from first impressions to relief, all you need to know

In a bid to understand consumers' sentiment during the current global COVID-19 crisis, Generali — a global Insurance and asset management company recently conducted a study in 22 countries. In India, Generali has a JV partnership with the Future Group to sell insurance products for the masses. The study in India was done through Epiphany – a global market research firm. Overall the findings show that there is a feeling of fear and anxiety as people are worried about the uncertainty of life as they knew it. Many are apprehensive about being able to protect their families and are worried about the economic losses likely to occur. Below are the findings specific to India.

What were the COVID-19 crisis first impressions
30% of the Indian respondents - who are adults living in large cities,perceive the COVID-19 threat as a severe national challenge. Further 30% feel that the crisis will worsen in the coming months. 4 out of 10 Indians worry about the impact of the pandemic on physical, mental, social and financial health. Urban families are mainly concerned about the impact on their physical health.

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What are thoughts and expectations 
Half the Indian working population now works from home. They expect this to continue for the next few months. Most of them put in the same number of hours as they did at their workplace.

What are the income relief measures they perceive?
95% - ie almost all Indians surveyed expect some form of relief in the case of income loss. 53% of those who have experienced losses expect help from the government. 60% are planning to dig into their savings and investments, while 39% expect help from family members. Significantly, 40% of Indians expect their employers to step in with some form of relief.  

What are the expectations from the Insurance industry?
Customers facing extreme income losses expect their insurers to provide flexibility in payment schedules. 38% people had contacted their insurance company proactively to get financial support or relief during this critical moment. The insurance company is seen as a wall that protects the customer from further suffering. Further, 63% of Indian insurance policy holders said that they would remain loyal to their current insurer.Awareness about purchasing insurance is one of the many changes that the COVID-19 pandemic has brought about. 73% of Indians consider life insurance purchase as a result of the crisis.Income protection shows the highest growth.

What is the preferred mode of communication?
Contact was mainly through e-mail, social media posts, phone calls, and in some cases, personal meetings. Those who were in contact with their insurers felt better supported and had more clarity about their coverage. Most respondents said that digital channels were the primary mode of communication. Hence, they perceive that the preferred channel of communication during the crisis is primarily going to be digital.

What were the global findings?
Globally people felt COVID-19 impacts daily life in multiple ways and consumers are now feeling the need to adjust to the ‘new reality’. Expectations of a quick recovery are low; people expect the pandemic to stay for at least a few months. But consumer’s hopes reveal aspirations for a better society. The impact on financial health is expected to hit hard with a long-lasting impact.