More Indians rely on personal recommendations from a friend, family, or known agent to buy insurance, reports The Economic Times, citing a survey by Policybazaar.

While 80% of those surveyed preferred this method, 58% say brand familiarity also plays a crucial role in their purchasing decision. The survey included 3,300 respondents from 27 cities across India, including metros, Tier 2 and 3 cities.

What deters consumers from buying insurance products? While 40% respondents cited high premiums as the reason for not purchasing health and life insurance, 53% found the products difficult to understand, the survey showed.

India continues to have one of the lowest penetration levels of insurance products in the world, says Sarbvir Singh, CEO, Policybazaar. He adds that it is important to build trust at every touchpoint of the consumer journey.

Simpler and more affordable products, increased use of technology in the entire process, as well early education on the importance of insurance is key, the report says.