Hansa Research unveils nationwide study showing private insurers outperforming public sector with emphasis on digital adoption
09 Dec 2025 | 1541 Views | By Shristi Ohri
India's motor insurance landscape is witnessing significant changes in consumer behavior, with private sector insurers substantially outperforming their public sector counterparts, according to a comprehensive nationwide study released today.
Hansa Research, a leading consumer insights firm, launched its Motor Insurance Customer Experience Study (CuES) 2025, surveying over 3,700 consumers ...
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India's motor insurance landscape is witnessing significant changes in consumer behavior, with private sector insurers substantially outperforming their public sector counterparts, according to a comprehensive nationwide study released today.
Hansa Research, a leading consumer insights firm, launched its Motor Insurance Customer Experience Study (CuES) 2025, surveying over 3,700 consumers across 12 major brands in the two-wheeler and four-wheeler segments. The study reveals an overall Net Promoter Score of 59% for the motor insurance sector, with four-wheeler policies scoring 61% compared to 55% for two-wheelers.
HDFC Ergo emerged as the top-ranked insurer across both segments, achieving an NPS of 71%. Other strong performers include Acko General at 65%, followed by Tata AIG and Royal Sundaram, both at 62%. Public sector insurance companies registered notably lower scores in both categories.
"Consumers today are far more informed and selective, and that's reshaping how they approach renewals in this category," said Piyali Chatterjee, Executive Vice President of Customer Experience at Hansa Research.
The study identifies several key factors influencing consumer decisions. While brand reputation and trust remain important, competitive pricing and transparency have become critical differentiators. Round-the-clock customer support emerged as increasingly vital, alongside seamless claim processes and comprehensive service benefits.
Digital adoption shows strong momentum, particularly among metro consumers and those under 45 years of age. Metro-based customers are 1.3 times more likely to purchase policies digitally compared to non-metro consumers, driven by greater familiarity with comparison platforms and online financial services.
The research highlights heightened switching behavior among specific demographics. Four-wheeler owners, younger millennials, and metro residents demonstrate significantly higher propensity to change insurers. Price remains the dominant factor, with 37% of four-wheeler customers who switched citing cost as their primary reason.
Cashless claim settlements are gaining traction, showing higher popularity among four-wheeler owners and upper socioeconomic segments. However, 44% of consumers who filed non-cashless claims indicated their chosen garage was not part of the cashless network.
Value-added coverage options are seeing strong demand, with Zero Depreciation, Roadside Assistance, Engine Protection, and No Claim Bonus Protection emerging as the most sought-after add-ons. These features show particularly high penetration among four-wheeler policyholders.
Praveen Nijhara, CEO of Hansa Research, emphasized the study's significance: "As value, trust and service quality become non-negotiables for today's customers, the market is shifting toward solutions that are transparent, frictionless, and deeply personalized."
The findings suggest insurers must prioritize consistent service delivery, proactive communication, and always-available customer assistance to retain younger consumers, who demonstrate lower loyalty and greater willingness to switch after negative experiences.
The Motor Insurance CuES 2025 follows Hansa Research's previous comprehensive studies on life and health insurance, forming part of the firm's broader initiative to provide data-driven insights across India's insurance sectors.