Robo-Advisors over Human Advisors

in Insurance sector?
A Study on awareness and perception to buy insurance
policies on advice of Robo- advisors in Delhi- NCR

By: Meghna Jain & Adyaa Aggarwal

Symbiosis Centre for Management Studies, Noida
Introduction
What is insurance?
Insurance is a contract, represented by a policy, in which an individual or entity receives financial
protection or reimbursement against losses from an insurance company. The company pools clients
risks to make payments more affordable for the insured.

What is robo advisory?

Robo-advisors are digital platforms that provide automated, algorithm-driven financial planning
services with little to no human supervision.
 Human-
Robo- Advisors
Advisors

Fees 0.2%-1% 2%-3%

Additional
Manage
Services Specialised
Investments
Services

Lesser Assets
More assets prefer
Good for Long Term passive
flexibility
“Lazy” investors
 A survey was
conducted
among 200
people living in
the Delhi-NCR
region.

The questionnaire
included to
introductory,
demography and
main questions.

The research
hypothesis was
tested using
regression
analysis.
Purpose/objectives
1. To study the impact of awareness about robo- advisory on
decision to invest in insurance options suggested by robo-advisors.

2. To analyze the impact of perception and preference of robo-

advisory services on spreading positive word of mouth about the
same.
Findings
1. Low Awareness about robo-advisors

2. Customers consider their own evaluation for the selection of the optimum insurance
scheme or policy rather than any other mode

3. There is an effect of awareness and trust towards Robo-advisory on the

recommendation to others.
Limitations
1. The time and cost

2. Most of the respondents were students.

3. The resistance of older people to fill the form

4. Robo- advisory, being a new concept in India

5. To the best of our knowledge, hardly any study in India has been
conducted so far and this is an attempt to further bridge the existing gap.
Originality/ Value
1. We find that robo- advisory has potential to reshape insurance value framework.
2. With advancement and maturity, robo advisors have started to become an important
part in the indian wealth management business.
Conclusion
There's a sheer need to style a lot of comprehensive platforms that take into consideration the behavioural peculiarities into
consideration and enable higher customization of insurance selections

Need to understand the role of robo-advisors

Focus on enhancing awareness levels of the consumers

Creating hybrid robot advisory models

Thank you