Millennials are the most active age group in seeking redressal for insurance-related grievances, accounting for 46 per cent of all complaints, according to a report by Insurance Samadhan, an insurance grievance redressal platform.
The report, which analysed 9,928 grievances, underscores a growing trend of younger consumers asserting their rights in the insurance sector.
The study found that individuals aged 39-52 accounted for 29 percent of total complaints, followed by the 53-66 age group at 16 percent.
The 11-24 age bracket contributed to 5 per cent of grievances, while the 67-80 and 81-94 age groups accounted for 4 percent and 0 percent, respectively. This trend suggests that millennials, typically aged 25 to 38, are more proactive in addressing insurance-related issues compared to older generations.
Among millennial complainants, claim rejection was the most significant issue, representing 88 percent of their grievances. Other key concerns included short settlement of claims and policy mis-selling. Across all age groups, claim rejection, short settlement, and delayed claim processing emerged as the top challenges faced by the policyholders.
Gender and Demographic Disparities
The report also highlighted gender disparities in grievance redressal, with men filing the majority of complaints. Among millennials, women accounted for 42 per cent of grievances, but their participation declined in older age groups. Additionally, professionals and service employees made up 62 per cent of the complainants, while 67 per cent of those seeking redressal held at least a graduate degree.
On a regional level, Maharashtra and Uttar Pradesh recorded the highest number of insurance grievances among millennials, reflecting variations in consumer awareness and insurance penetration across different States.
Industry Needs Greater Transparency
Shilpa Arora, Co-founder and COO of Insurance Samadhan, emphasised the need for improved transparency and customer support in the insurance sector. She noted, “Our data shows that despite being financially literate and tech-savvy, millennials still struggle with claim rejections and policy mis-selling. This highlights the need for greater consumer awareness and better communication from insurers.”
Arora pointed out that the increasing adoption of digital insurance platforms, coupled with rising awareness of policy terms, has contributed to the surge in grievances. She also stressed the importance of bridging gaps in insurance accessibility, especially for women and rural consumers. “While more young consumers are asserting their rights, we must work towards expanding awareness and ensuring that older demographics, especially women in rural areas, are not left behind,” she noted.
Bridging the insurance gap
Despite the growing awareness among millennials, a significant portion of India’s population still lacks insurance coverage. Arora noted that 31 per cent of Indians remain uninsured on health front due to factors such as low insurance penetration and high premium costs.
She urged insurers to develop more tailored products for different demographics and simplify the grievance redressal process to foster greater trust in the sector. “As India works towards achieving ‘Insurance for All by 2047,’ the industry must focus on making policies more consumer-friendly and improving redressal mechanisms to ensure fair outcomes,” she said.
Insurance Samadhan’s Role in Grievance Redressal
Insurance Samadhan has played a crucial role in addressing insurance-related disputes, having resolved over 18,000 cases and recovered claims worth ₹ 160 crores for more than 15,000 individuals. The company’s Polifyx app has reduced grievance resolution turnaround time by 55 per cent, bringing it down from the earlier 60 days.
By offering swift and effective redressal services, Insurance Samadhan aims to empower policyholders and contribute to the growth and credibility of India’s insurance sector. As younger consumers continue to demand accountability from insurers, the industry will need to adapt to their expectations by enhancing transparency and customer service standards, insurance industry observers said.
