Beginning with a Protection Quotient of 35 in 2019, India has come a long way. As per the latest edition of the India Protection Quotient survey, urban India has showcased a positive movement, climbing up 8 points on the Protection Quotient to 43 – signaling steady progress in the country’s overall financial protection levels.
The survey, conducted by Max Life Insurance Company Ltd in partnership with KANTAR, also revealed that the degree to which urban Indians are aware about life insurance products or the Knowledge Index moved up from 39 (in IPQ 1.0) in 2019 to 57 and life insurance Ownership Levels increased by 800 bps from 2019 (IPQ 1.0) to 73%.
Against the backdrop of a waning pandemic, the survey highlights a massive recovery in Security Levels; it is observed to be steadily coming back to pre-pandemic levels – starting from 66% in IPQ 1.0 to an all-time–low of 57% during the pandemic, and back to 63% in this edition.
According to IPQ 5.0, with respite from health-related worries, urban India has begun reprioritizing investments in savings plans for life insurance showcasing sustained growth in ownership – up from 24% in IPQ 1.0. to 38% in IPQ 5.0, while term plan adoption rates have grown ~50% in 5 years.
Also Read: When taking a personal loan is a bad idea
Commenting on the launch of IPQ 5.0, Prashant Tripathy, Managing Director and CEO, Max Life Insurance, said, “We initiated the India Protection Quotient survey five years ago with the endeavor to understand India’s behavior and outlook towards financial protection – an important metric in determining the resilience of the nation. Since then, the India Protection Quotient survey has evolved into a financial health indicator, effectively enabling Max Life and the life insurance sector uncover the pulse of the nation on financial preparedness.”
He further commented, “This year, we see urban India transition to a more secure space, as health anxieties take a backseat. Additionally, while India has begun recognizing the real value of term insurance, ownership remains an area of challenge that the life insurance industry will need to work hard to address. While the current findings of study instill confidence in India’s trajectory towards financial independence, a challenging journey lies ahead of us, one that will be marked by the lessons of the past as well as insights that will shape the future of the country’s life insurance sector.”
Soumya Mohanty, Managing Director and CCO, Kantar Insights, South Asia commented on the results of the survey, “As a flagship survey, the India Protection Quotient study has played an instrumental role in serving as a valuable study that explores key consumer insights with a statistical lens. We are pleased to be partners of Max Life in their endeavor to increase awareness of life insurance and ensuring financial resilience in the nation.”
Key findings of the survey
* South India blazes ahead of all zones in Protection Quotient with 8 out of 10 owning life insurance
* Term Awareness at an all-time high of 64%, but uptake remains an area of concern
* The need for medical tests & poor seller service emerge as strong barriers for term purchase
* While fewer Indians think of term plans as expensive, premium still remains top-of-the-mind criteria
* Life insurance ownership increases significantly amongst working women
* Urban India’s self-employed still lag in financial awareness and protection levels compared to salaried
* Digitally-savvy urban India’s Protection Quotient crosses halfway mark in journey towards financial protection