With a waning Covid-19 pandemic inducing optimism, urban Indians have shown a positive move towards protection both in terms of life insurance awareness and ownership, the latest edition of India Protection Quotient (IPQ) 5.0 revealed. Max Life Insurance.
Max Life Insurance India’s protection quotient increased from 39 in 2020 to 43 in latest survey thanks to a strong demonstration of safety levels, which has returned to pre-pandemic levels by 63% in the latest edition. The latest survey had more than 4,600 respondents, including 1,080 via digital mode.
Commenting on the IPQ 5.0 findings, Prashant Tripathy, Managing Director and CEO of Max Life Insurance, said: “This year, we see urban India transition to a safer space as health concerns shift to a background. Also, while India has begun to recognize the real value of term insurance, property remains a challenge area that the life insurance industry will need to work hard to address.”
Tripathy added: “While the current study findings instill confidence in India’s trajectory towards financial independence, a challenging journey awaits us, one that will be marked by lessons from the past, as well as insights that will shape India’s future.” the country’s life insurance sector.
Areas of concern
According to Tripathy, inflation was a major concern before Urban India, but he clarified that it would not negatively affect demand for life insurance.
Although Tier 1 cities have made gains in life insurance ownership, the gap with metropolitan areas remains considerable. Awareness of term insurance is at an all-time high of 64 percent and ownership has increased from 1 in 5 to 1 in 3 in the last five years.
The latest edition of the IPQ survey, conducted in partnership with KANTAR, also revealed that the degree to which urban Indians are aware of life insurance products or Knowledge Index increased from 39 (at IPQ 1.0) in 2019 to 57 and Property Life Insurance Levels increased by 800 bps from 2019 (IPQ 1.0) to 73 percent.
Reprioritization of investments
According to IPQ 5.0, with a respite from health-related concerns, urban India has started prioritizing investments in life insurance savings plans showing sustained growth in ownership, up 24 per cent on IPQ 1.0 . to 38% in IPQ 5.0, while term plan1 adoption rates have increased ~50% in five years.
On the bright side, urban India has made great strides in the knowledge index in the last five years. While the survey noted a change from 71% to 73% in IPQ 3.0 life insurance ownership, the increased awareness across all categories is reflected in increased product ownership, including the term (30%), linked to market (13%), and savings plans (38%).
Likewise, the South Zone celebrates five years of indisputable number one position in the Protection Quotient. IPQ 5.0 noted a marked increase in the Protection Quotient for the South zone from 41 to 47. The West zone ranks second with 42 points, followed by the North and East with 40 and 39 respectively.
understand behavior
Tripathy said Max Life Insurance had started the IPQ survey five years ago with the aim of understanding India’s behavior and perspective on financial protection, an important metric in determining the nation’s resilience.
“Since then, the IPQ survey has become a proxy for financial health, effectively allowing Max Life and the life insurance industry to discover the pulse of the nation on financial readiness,” he added.
