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The ongoing pandemic situation has accelerated the knowledge and ownership of insurance in the country, and this is reflected in the findings of latest edition of the ‘India Protection Quotient’ (IPQ 3.0), said Prashant Tripathy, Managing Director and CEO, Max Life Insurance, on Tuesday.
Releasing the findings of the third edition of its survey, conducted in association with KANTAR, Tripathy noted that Indian households have, in the current times, increased focus on savings and investments while reducing spend on both basic needs and luxury. In the backdrop of Covid-19, however, India continues to feel financially insecure, he added.
Top concerns
Financial anxieties related to Covid-19, and the ability of current earnings to cover expenses, have emerged as top concerns for urban Indians, said Tripathy.
As per the survey, urban India witnessed a positive movement of 4 points on the Protection Quotient scale from 35 (as per IPQ 2.0) to 39 (as per IPQ 3.0).
Conducted in the most uncertain and challenging times, Max Life IPQ 3.0 assesses the notable shifts in the attitude of urban Indians from the beginning of the lockdown in March 2020, through the different phases of Covid-19, until the announcement of viable vaccine in December. Around 4,357 respondents were surveyed via face-to-face interviews with adequate safety measures across 25 cities comprising 6 metros, 9 Tier I and 10 Tier II cities, making this one of the most comprehensive financial studies carried out during Covid-19 situation.
The survey revealed that the degree to which Indians are aware about life insurance products or the Knowledge Index moved up by 9 points to 55, and Life Insurance Ownership levels increased by 500 bps from IPQ 2.0 to 71 per cent. The degree to which Indians feel financially secure and prepared or the Security Level dipped by 300 bps to 57 per cent amid uncertain times.
Notably, the survey shows a significant growth of Knowledge Index across all cities, age and gender, highlighting responsible outlook of urban India amiduncertain times.
In the wake of the pandemic, the survey witnessed an increase in India’s levels of term insurance awareness and term insurance ownership. Now, 28 per cent of urban Indians own term products, notably higher than the earlier 24 per cent as per IPQ 2.0.
“While the survey has observed a positive trend in urban India’s approach to financial protection over the last three editions, there’s still a long way to go. IPQ 3.0 survey reveals that while issues surrounding financial preparedness were magnified during the challenging Covid-19 times, there are long-term lessons to be learned when it comes to addressing and acknowledging financial protection. Slowly but gradually, we are seeing urban India move towards proactive financial planning that can avert anxieties and help build resilience,” said Tripathy.
Soumya Mohanty, Managing Director and CCO, Kantar Insights, South Asia, said IPQ as a flagship survey has grown to become a strong marker for the life insurance sector in India. Since its first edition in 2019, it has helped the sector sharpen focus and product offerings. “In the wake of the pandemic, IPQ 3.0 presents us with useful insights around people’s attitudes towards savings, investments, and the overall idea of financial protectionin uncertain times,” she said.
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