Policybazaar, India’s leading online insurance platform, revealed key trends in the term insurance landscape for Karnataka at an exclusive press meet held in Bengaluru today. The event was chaired by Varun Agarwal, Head, Term Insurance, Policybazaar.com, who shared key highlights shaping consumer behaviour and coverage adoption in the region.
“Bengaluru, also known as the Silicon Valley of India is observing a high-value uptake in term insurance plans. Consumers in both the city and the state are increasingly becoming financially conscious and realizing the importance of protecting their loved ones during uncertainties, leading to a rise in term insurance purchases. Policybazaar is committed to serve customers at every step of their insurance journey—right from policy search and comparison to purchase and claims support,” said Varun.
Strong growth in term insurance
Karnataka emerged a strong market in term insurance as the growth stood at approx. 30% in FY 2024-2025, indicating strong buyer intent and awareness. While Bengaluru recorded a similar growth, reflecting steady momentum in term insurance adoption.
The average sum insured observed noteworthy figures. In Karnataka, the average sum insured was ₹1.2 crore, an impressive growth of 20% higher than the pan-India average of ₹1crore. What’s more remarkable is that the figure in Bengaluru was even higher at ₹1.4 crore, representing a staggering 40% increase as compared to the national average.This reflects a growing preference for high-value coverage among consumers who are factoring in evolving lifestyle needs and seeking protection that can keep pace with rising inflation.
Term insurance adoption amongst women increases
Women are becoming more aware when it comes to term insurance adoption.Thanks to the new-age term insurance plans that cater to all kinds of segments and offer tailored benefits. Women buyers accounted for 20% of policies bought in FY 2024-2025 in Karnataka, which is higher than the pan-India average of 18%.
Educated and salaried buyers take the lead
In Karnataka, graduates and above made up 85.8% of buyers, compared to 78.6% nationally, showing an 7.2 percentage points higher penetration. While, in Bengaluru, the figure was even higher at 88.9%, representing an increase of 10.3 percentage points. Salaried individuals represented 80% of policyholders in Karnataka and ~90% in Bengaluru, significantly higher than the 70% pan-India average. This shows that term insurance adoption is being driven by financially stable and educated individuals who understand the value of long-term protection.
More than half of the customer share in Bengaluru and Karnataka is under 35 years of age, which shows early stage awareness among young people regarding term insurance. Not just that, the city is home to a lot of High-net-worth individuals (HNI customers) as they make up 16% of Bengaluru’s customer base, which is more than double the national average of 6.8%. This shows a strong inclination amongst affluent consumers who want to secure substantial financial protection through term insurance.
The human touch still matters
While digital platforms continue to transform the insurance landscape, face-to-face interactions remain an important part of the customer experience. Many individuals prefer personal meetings when making important financial decisions, such as purchasing term insurance. At Policybazaar, the focus is on providing a holistic experience to customers, depending on their needs. Face to face appointments for Bengaluru saw a YoY growth of 12% and 25% for Karnataka.
Policybazaar’s end-to-end support at every step
Filing a claim for term insurance can be emotionally challenging for customers at difficult times. Policybazaar’s dedicated support teams are available to walk with the customers every step of their way. Our support term handles documentation, coordinating for formalities and other steps, thereby simplifying the process and ease the burden of customers. Our service is designed to eliminate the usual complexities associated with claims experience.
As Karnataka and Bengaluru continue to lead the way in term insurance adoption, Policybazaar remains committed to empowering consumers with the right plans, information and support to make informed financial decisions.
