Customer Journey for buying HLI

Insurance

Financing •Term or HLI

Buying •Premiums
•Banks •Benefits (death,
•Interest Rates disability, etc.)
Search •Price
Planning to buy •Credit Score •Coverage
finalization
a home •Loan-to-Value •Surrender Value
•Brokers •Other processes Ratio •Time of buying
•Online as per the
•Other charges insurance i.e.
•Budget contract
•Friends/Relative along with or
•Location s •Documentation after home loan
•Type •Ads
•Size
 Stakeholder Analysis

Stage 1: Customer

Customer

Awareness Interest Decision Action

Preferred Purchase
Product Awareness Interest in HLI Decision Triggers
Channels

Factors influencing
Source of Awareness Influencers Expectations
interest

Perception of HLI Concerns Evaluation Criteria Experience

Awareness of Preferred Info. Post-Purchase

Channels Barriers to Purchase
Benefits Behaviour

Additional Info. Timeframe

Awareness

1. Product Awareness: Customers need to be aware of home loan insurance as a product. This awareness can be
measured through surveys or market research. It’s important to understand the level of awareness among different
demographics and regions to tailor marketing strategies accordingly.
2. Source of Awareness: The sources from where customers have heard about home loan insurance can vary. These
sources could be advertisements, word of mouth, financial advisors, or online platforms. Identifying these sources can
help in optimizing marketing channels.
3. Perception of Home Loan Insurance: Customers’ initial perception of home loan insurance can greatly influence their
decision to purchase. This perception can be shaped by their understanding of the product, past experiences, or
opinions heard from others.
 4. Awareness of Benefits: Customers’ awareness of the benefits of home loan insurance is crucial. These benefits
include financial security, protection against unforeseen circumstances, and peace of mind knowing that their home
loan will be taken care of in their absence.

Interest

1. Interest in Home Loan Insurance: The level of interest customers have in home loan insurance can be influenced by
various factors. These factors could include their financial situation, risk tolerance, and understanding of the product.
2. Factors Influencing Interest: Factors that influence their interest could include financial security, loan repayment
terms, premium amounts, and the reputation of the insurance provider.
3. Concerns: Customers might have concerns or apprehensions about home loan insurance. These could include the cost
of premiums, the claim process, or the terms and conditions of the policy.
4. Preferred Channels: Customers may prefer different channels for receiving information about home loan insurance.
These could include email, phone calls, in-person meetings, or digital platforms.
5. Additional Information: Customers may want additional information about the product. This could include detailed
policy terms, claim process, customer testimonials, or comparisons with other insurance products.

Decision

1. Decision Triggers: Customers may decide to purchase home loan insurance due to various triggers. These could
include buying a new home, refinancing a home loan, change in their financial situation, size of loan, etc.
2. Influencers: The decision to purchase home loan insurance could be influenced by family, friends, financial advisors,
or online reviews apart from the lending financial institution.
3. Evaluation Criteria: Customers may use various criteria to evaluate different home loan insurance options. These
could include premium amount, coverage, flexibility (add-ons and riders), claim process, customer service, the
reputation of the insurance provider.
4. Barriers to Purchase: There could be barriers that prevent customers from purchasing home loan insurance. These
could include eligibility criteria, cost of premiums, lack of awareness, or negative perceptions about insurance.
5. Timeframe: The timeframe within which customers make the decision to purchase can vary. Some customers may
make a quick decision, while others may take time to research and compare different options.

Action

1. Preferred Purchase Channels: Customers may prefer different channels for purchasing home loan insurance. These
could include direct purchase from the insurance provider, through a broker, or online platforms.
2. Expectations: Customers may have certain expectations during the purchase process. These could include
transparency in the process, prompt customer service, and clear communication of policy terms.
3. Experience: The experience of customers with the purchase process can influence their satisfaction and loyalty.
Factors influencing this experience could include the ease of purchase, the responsiveness of the insurance provider,
and the clarity of information provided.
4. Post-Purchase Behaviour: After purchasing, customers may engage in various behaviours. These could include
reviewing the insurance provider, recommending the product to others, or staying informed about their policy and
any updates. Understanding this behaviour can provide insights into customer satisfaction and areas for
improvement.

Customer Pain Points during the process of taking the Home Loan

1. Restricted Eligibility criteria – loan rejections

2. Time consuming/Delayed Approval process
3. Requirement for a substantial down payment
4. Complex Paperwork
5. High interest rates and overhead costs.
6. Changing Policies and Regulations
 Stage 2: Banker

Banker (Lender)

Loan Specific Documenation and Overhead costs Loan servicing and Bank specific (HLI
Evaluation phase support introduction phase)

Appropriate income Various fees Online loan and

Loan options How does your bank
range, credit score, associated with home paymentmanaging
available with manage situations in
employment type if loans process
duration and case the borrower
associated interest necessary, criteria for faces financial
rates evaluating difficulties?
creditworthiness of
buyer
Penalties for late Customer support
repayment or provided - online and
Minimum down prepayment of loan offline, and what
payment for different Since HLI is a nascent
additional support is market, how is your
types of loans Duration of loan there in D2C bank making people
approval procedure aware of HLI ? ( ask
about channels i.e.
About loan figures - online or offline)
current interest rate,
ticket size Factors influencing
approval/decline of What will be your
HL different offerings for
How many % of HLI? (clubbed, non
people applying for clubbed..)
Home Loan actually
buy HLI and if not what
are their concerns?
Will you consider a
drop in interest in
case HLI is purcahsed
from your bank?

Would your bank

cancel HLI in case the
loan is shifted from
one bank to another?
Affinity groups special schemes (to be informed by banker at the time of HLI introduction) –

Affinity groups are basically linked with the same interest. Any borrower from the following community would be offered HLI at
a comparatively less premium. This serves as an important part for making a business community.

1. Defense Personnel
2. International employees
3. Christian employees
4. LGBTQ community
5. Veterans’ community
6. Women groups
7. Disability groups
 Stage 3: Builder & Brokers

Customer
Not the perfect spot to pitch in an HLI as:
Insurance can't be
• Broker not having that much of pitched as owner just
influencing power for customer would care about the
• Customer mindset that broker Broker Direct to owner
money he’s getting
has vested interests. and not about
anything else.
Relation limited to
Online Offline monetary
BUILDER

Magicbricks/9 Incentives
CROSS SELLING required
An offer can be
9Acres
Recommendation:
rolled out at the LIC agent model
time when can be followed
customer will give Already has VAS of
booking amount ,a Home loan
combined offer Assistance,
with HLI can be Insurance can be
offered. clubbed

HOW BROKERS GET TO KNOW ABOUT HLI

Customers

Broker

Bank Agents Fellow Brokers

Customer Pain Points during and the process of Home Loan Insurance

1. Documentation Hassles

2. Financial strain on customers because of high loan processing time

3. Claim Declines

4. Emotional stress because of dealing with home damage.

5. Improper valuation (Property Appraisal Issues)

6. Coordination and communication with numerous stakeholders

7. Ambiguity in Terms and Conditions because of lack of awareness of this product and market
 Stage 4: Post Insurance

Post Insurance Stage

Taxation and registrar

Payment of premiums Claim Process
compliances

Any specific tax

Frequency of making
Events covered for implications or
payments (One-time,
getting claim under HLI considerations related
Annually, Monthly)
to D2C HLI

Whether premium for Different tax implications if a

Ease of applying for the customer chooses to buy a HLI
HLI is to be merged
claim at the time of availing loan vs
with EMI of Home Loan
after loan has already been
availed.

Time taken to process

Mode of payment
the claim
Suggested improvements for
smoother implementation of
D2C HLI process.
Any tax implication
during the claim
process

Customer Pain Points after the claims process

1. High time taken to release the settlement amount

2. Unrevealed increase in premium after filing a claim

3. Limitations on coverage of certain damages

4. Owner’s claim history