The Max Life survey highlights increase in term insurance ownership in Urban India
As normalcy sets in, Urban India’s priorities have re-baselined to the long-term objective of children’s education and retirement planning, a survey conducted by Max Life has revealed.
With increasing immunisation coverage and a growing positive outlook beyond Covid-19, Urban India’s ‘Protection Quotient’ has moved 3 points to 50, witnessing a gradual rise from previous IPQ editions.
This is reflected in the findings of the fourth edition of the India Protection Quotient survey (IPQ) released by Max Life Insurance in association with Kantar on Wednesday.
The trend line reflects a steady growth in the country’s overall financial protection that has led to prioritising financial security over all aspects, the survey findings show.
The survey indicates a marginal increase in Urban India’s knowledge index from 68 to 69, while the security index has increased by 5 points to 56 per cent. Metros, Tier-1 and Tier-2 cities have also witnessed an increase in the protection index, while Tier-2 saw a significant rise in life insurance awareness from 61 to 68. This indicates a strong potential for life insurance adoption in Tier-2 markets.
Conducted entirely online, the India Protection Quotient 4.0 surveyed 5,729 respondents across 25 Indian cities [between December 10, 2021 and January 14, 2022], making this one of the most comprehensive financial studies carried out during the recent wave of Covid-19.
Term insurance ownership
Term insurance witnessed an uptake in the last two years, with ownership rising to a significant 43 per cent from 39 per cent last year.
The survey also reflects increased ownership of other life-insurance products amongst Urban Indians such as savings and market-linked plans.
Managing Director and CEO, Max Life Insurance, Prashant Tripathy said, “The last two years have been indeed challenging due to the pandemic, but we also witnessed an upside with India developing financial resilience. This is evident from the insights in IPQ 4.0 that show a strong sense of financial security amongst urban Indians.”
Despite the positive movement, the survey also indicates key challenges that need to be addressed. “While India has realised the real value of term insurance, existing barriers are limiting efforts to drive increased awareness and adoption till the last mile. The IPQ study will help us create customer-centric measures to resolve these issues, while enabling collective responsibility to build a higher level of trust with customers,” Tripathy said.
Soumya Mohanty, Managing Director and CCO, Kantar Insights, South Asia said “The one key outcome that emerges from the survey is the significant increase in security levels of the urban milieu. Despite the unprecedented impact of Covid-19, this is an important indication of growing financial consciousness in the country.”
The other key findings of the survey include the salaried segment recording an improvement across all key indices, while the self-employed registered a fall in term ownership.