Insurance jargon, complex products drive consumer confusion and purchase drop-offs in India: Report
India’s life insurance industry is losing potential customers as technical jargon and complex product information leave consumers confused and uncertain during the purchase journey. Capgemini’s World Life Insurance Report 2027 highlights the need for simpler, clearer and more contextual communication to convert consumer interest into completed purchases.
- Sep 10, 2026,
- Updated Sep 10, 2026 11:46 AM IST
India’s life insurance industry is struggling to convert consumer interest into completed purchases as technical language, sales-heavy communication and complex product choices leave potential buyers confused and unconvinced, according to the Capgemini World Life Insurance Report 2027.
The report highlights a significant disconnect between the industry’s communication and what consumers need to make informed insurance decisions. While consumers increasingly recognize the importance of financial protection, the content they encounter often does not provide the clarity required to understand policies, compare options and assess their relevance to individual circumstances.
Jargon adds to the insurance complexity
Capgemini found that Indian consumers face greater difficulty with overly technical language, contributing to higher purchase drop-offs than global peers. Across the insurance journey, consumers report that content is too technical or full of jargon, focuses on selling rather than helping them understand products, and makes it difficult to compare available options.
The findings point to a communication problem that extends beyond product design. Even when consumers are interested in buying life insurance, unclear explanations of policy features, benefits and terms can create uncertainty at critical points in the purchase journey.
According to the report, 40% of consumers say insurance content is too technical or full of jargon, while 38% say it is focused on selling rather than helping them understand. Another 37% find it difficult to compare options or understand the differences between products.
The result is a sizeable pool of consumers who remain confused, uncertain or unconvinced about life insurance, with some abandoning the purchase journey before completing it.
| Key finding | India (%) | Global (%) |
|---|---|---|
| Insurance content is too technical or full of jargon | 40% | 37% |
| Insurance content focuses on selling rather than helping consumers understand | 38% | 38% |
| Consumers find it difficult to compare options or understand product differences | 37% | 34% |
| Consumers remain confused, uncertain or unconvinced about life insurance | 42% | 37% |
| Consumers drop out of the purchase journey before completing it | 25% | 37% |
Source: Capgemini Research Institute for Financial Services Analysis, 2026.
From selling products to explaining value
The report argues that insurers need to shift from sales-led communication towards clearer, contextual and interactive education. Simplifying insurance concepts and connecting products to consumers’ actual life circumstances could help bridge the gap between awareness and action.
Capgemini recommends using short-form content, real-life scenarios and influencer-led communication to simplify policy concepts while remaining within regulatory boundaries. Insurers can also use AI-enabled conversational guidance to answer consumer questions in context and provide personalized financial narratives showing what level of protection may be relevant to an individual.
The report notes that Indian insurers are already ahead of global peers in delivering contextual and interactive education and guidance, suggesting that the market has an opportunity to build on existing capabilities.
ALSO READ: Private hospital vs government hospital cost: Hospitalisation is nearly 8 times more expensive
For insurers, the implication is clear: making policies easier to understand could become a competitive advantage. Better consumer education can improve decision-making, reduce purchase drop-offs and ultimately strengthen long-term customer relationships.
As life insurers seek to expand coverage, the report suggests that winning consumers may depend not simply on offering more products, but on making those products easier to understand, compare and relate to real-life financial needs.
India’s life insurance industry is struggling to convert consumer interest into completed purchases as technical language, sales-heavy communication and complex product choices leave potential buyers confused and unconvinced, according to the Capgemini World Life Insurance Report 2027.
The report highlights a significant disconnect between the industry’s communication and what consumers need to make informed insurance decisions. While consumers increasingly recognize the importance of financial protection, the content they encounter often does not provide the clarity required to understand policies, compare options and assess their relevance to individual circumstances.
Jargon adds to the insurance complexity
Capgemini found that Indian consumers face greater difficulty with overly technical language, contributing to higher purchase drop-offs than global peers. Across the insurance journey, consumers report that content is too technical or full of jargon, focuses on selling rather than helping them understand products, and makes it difficult to compare available options.
The findings point to a communication problem that extends beyond product design. Even when consumers are interested in buying life insurance, unclear explanations of policy features, benefits and terms can create uncertainty at critical points in the purchase journey.
According to the report, 40% of consumers say insurance content is too technical or full of jargon, while 38% say it is focused on selling rather than helping them understand. Another 37% find it difficult to compare options or understand the differences between products.
The result is a sizeable pool of consumers who remain confused, uncertain or unconvinced about life insurance, with some abandoning the purchase journey before completing it.
| Key finding | India (%) | Global (%) |
|---|---|---|
| Insurance content is too technical or full of jargon | 40% | 37% |
| Insurance content focuses on selling rather than helping consumers understand | 38% | 38% |
| Consumers find it difficult to compare options or understand product differences | 37% | 34% |
| Consumers remain confused, uncertain or unconvinced about life insurance | 42% | 37% |
| Consumers drop out of the purchase journey before completing it | 25% | 37% |
Source: Capgemini Research Institute for Financial Services Analysis, 2026.
From selling products to explaining value
The report argues that insurers need to shift from sales-led communication towards clearer, contextual and interactive education. Simplifying insurance concepts and connecting products to consumers’ actual life circumstances could help bridge the gap between awareness and action.
Capgemini recommends using short-form content, real-life scenarios and influencer-led communication to simplify policy concepts while remaining within regulatory boundaries. Insurers can also use AI-enabled conversational guidance to answer consumer questions in context and provide personalized financial narratives showing what level of protection may be relevant to an individual.
The report notes that Indian insurers are already ahead of global peers in delivering contextual and interactive education and guidance, suggesting that the market has an opportunity to build on existing capabilities.
ALSO READ: Private hospital vs government hospital cost: Hospitalisation is nearly 8 times more expensive
For insurers, the implication is clear: making policies easier to understand could become a competitive advantage. Better consumer education can improve decision-making, reduce purchase drop-offs and ultimately strengthen long-term customer relationships.
As life insurers seek to expand coverage, the report suggests that winning consumers may depend not simply on offering more products, but on making those products easier to understand, compare and relate to real-life financial needs.