Terragni Consulting’s Ease of Engagement Score (EAS) 2026 Study

The press release announces the publication of Terragni Consulting’s pan‑India neuroscience‑based Ease of Engagement Score (EAS) 2026 Study, which evaluates how Indian consumers experience financial services across health insurance, life insurance, mutual funds and personal loans. The study applies consumer neuroscience and behavioural science to assess cognitive processing and emotional response throughout financial journeys, concluding that India now faces a confidence crisis rather than an access gap.

Key Findings

  • Digital adoption has removed physical barriers, yet millions of consumers experience confusion, uncertainty and emotional fatigue when making critical financial decisions.
  • Health‑insurance claim settlement stands at 89%, but penetration fell from 4.2% to 3.7%, leaving more than 430 million Indians uninsured according to IRDAI and the National Insurance Academy.
  • A LocalCircles survey cited in the report indicates that nearly 69% of policyholders have faced claim rejections or partial approvals, reinforcing fear and mistrust despite positive settlement outcomes.
  • The mutual‑fund industry manages over ₹75 trillion in assets under management, yet investors often require multiple interactions to complete basic redemption requests.
  • Loan‑related complaints rose 43% year‑on‑year to 85,281 cases, while overall banking complaints surged 68% to over 934,000 cases, according to the RBI’s Banking Ombudsman data.
  • Borrowers report uncertainty around approval timelines, eligibility logic and bundled products rather than dissatisfaction with processing speed.

Business Implications

  • Terragni estimates that eliminating cognitive friction could unlock 25‑35% higher customer lifetime value and engage hundreds of millions of under‑engaged users.
  • The study highlights “dark patterns” such as hidden fees, jargon‑heavy documentation, complex surrender penalties and forced bundling (e.g., “No Policy, No Loan”) that increase customer confusion.
  • Internal sales pressure is evident: 57% of relationship managers acknowledge pressure to sell unsuitable products, and 51% fear job loss if sales targets are not met.
  • Comparative analysis with Singapore banks (DBS Bank and United Overseas Bank) shows that transparent, real‑time visibility into approval stages, rather than speed alone, is becoming the new competitive advantage.

Recommended Roadmap

Terragni proposes an 18‑month transformation roadmap for financial institutions, focusing on:

1. Transparency dashboards that provide real‑time status of applications and transactions.

2. Predictive communication systems that proactively inform customers of next steps.

3. Simplified language interfaces to reduce jargon and improve comprehension.

4. AI‑led financial guidance tools that help customers understand decisions in real time.

The report warns that traditional institutions have a 12‑18‑month window before digital‑native competitors reshape customer expectations across the industry.

Conclusion

The EAS 2026 Study frames financial friction as an economic challenge: reduced insurance adoption, weaker investment participation, lower credit utilisation and diminished entrepreneurial risk‑taking collectively constrain inclusive economic growth. Organizations that reduce cognitive friction and prioritise transparency are positioned to become the next generation of market leaders in India’s evolving financial ecosystem.

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