Strengthening its commitment towards ensuring greater financial protection for the country in the midst of COVID-19, Max Life Insurance Company Ltd. (“Max Life”/ “Company”) unveiled the findings of the COVID-19 edition of its flagship survey ‘Max Life India Protection Quotient- Express’ (“IPQ/IPQ Express”) in association with KANTAR. Titled IPQ Express, the survey reveals dominant consumer sentiment in the times of COVID-19 on the back of how protected digitally savvy urban Indians feel with respect to financial security, savings and investments, medical preparedness, key anxieties, and new acceptance levels in an increasingly digital world.
The digitally savvy, urban respondents of North India revealed a protection quotient of 45 during COVID-19 times, at par with national average of 45. North India demonstrated the highest life insurance ownership of 78% (at par with South) followed by East region that had an ownership of 77%, and West where life insurance ownership stood at 73%. The financial security levels too were highest in North (and west India) with 53% respondents feeling attitudinally secure, followed by 52% in East India and 48% in South India.
The region’s life insurance knowledge index however stood at 66, lower when compared to South (68) and East (67) but higher in comparison to west (63).
Commenting on the findings of IPQ Express, Aalok Bhan, Director and Chief Marketing Officer, Max Life Insurance said: “COVID-19 has created unique circumstances for all of us. The situation has not only affected us mentally and physically, but also brought its own set of financial challenges. Given the uncertainties surrounding COVID-`19, it is important for individuals to recognize the importance of life insurance in securing the financial future of loved ones. With a protection quotient of 45, at par with national average of 45, North India reflects scope for increasing financial preparedness. By presenting key findings of ‘India Protection Quotient Express’, the Covid centric edition of our survey at a meaningful juncture, we aim to reinforce the importance of continued coverage in tough times, encouraging the region to embrace comprehensive financial protection.”
- Key Findings
- COVID-19 has driven 84% digitally savvy North Indians towards proactive financial planning
IPQ Express revealed increase in importance of financial protection in the region. As opposed to 81% respondents in East and 79% respondents in West, a higher 84% respondents in North India believe that the current situation demands one to be more proactive about financial planning. The shift is highest in South, where 86% respondents believe that the situation calls for proactive financial planning.
- For 70% respondents in North India, financial security in absence of breadwinner key cause of anxiety during COVID-19
The survey found digitally savvy, urban respondents of North India to be more anxious about increasing number of COVID-19 cases and about financial security of family in the absence of a bread winner. With increasing cases of COVID-19, concerns about someone in the family falling prey to it was the biggest cause of anxiety for 72% in North India. Financial security of family in the absence of a breadwinner came a close second at 70%. Further, 69% respondents in North India worried about sustaining the cost of COVID-19 treatment, followed by 66% respondents for whom job security and stability of incomes was one of the topmost anxieties.
- North India saving more than investing; savings targeted towards COVID-19 treatment and medical emergencies
In wake of COVID-19, IPQ Express brought to light that respondents in North India are diverting more towards savings in comparison to investments and basis expenses. For digitally savvy, urban respondents of North India, 30% of income was diverted towards savings, 29% towards basic expenses and 24% towards investments.
The survey found that saving objectives too have witnessed a shift. Saving for COVID-19 treatment in case someone in the family gets infected with it was the topmost savings objectives for 59% respondents in North India. This was followed by saving for critical medical emergencies which was a key priority for 52% respondents. Providing for family in case of loss of job/business was a savings objectives for 42% digitally savvy respondents in North India.
IPQ Express survey revealed that Life insurance ownership in North India was highest across zones. While 35% digitally savvy, North Indian respondents owned term products, 34% owned endowment products and only 16% owned market linked products.
In comparison to other regions however, North India’s term insurance ownership of 35% is lesser than East and West where 40% and 37% respondents respectively own term insurance products, but greater than South where term insurance ownership stands at 34%.