Max Life Insurance Co. Ltd (“Max Life”) in association with Kantar recently unveiled the India Protection Quotient (“IPQ”) 4.0 survey. Tapping 5,729 respondents across 25 Indian cities [between 10 December 2021 to 14 January 2022], the survey was carried out during the recent wave of the Covid-19 pandemic.
North India registered a protection quotient of 50 equalling the overall zonal average and second to South, which registered a protection quotient of 51.While the knowledge index was highest at 71, life insurance ownership was the lowest at 76% in North. Despite drawbacks, North India impressed on the security levels (56%) and term insurance ownership (45%), outscoring other regions.
V. Viswanand, Deputy Managing Director, Max Life said: “With over two years since the pandemic, urban India has evolved its financial awareness and taken conscious steps to protect their future.IPQ 4.0 highlights a strong sense of financial security that prevails across regions, leading to a higher protection quotient generated in the survey compared to previous editions. While the Northhas seen a key shift in life insurance awareness, insurance adoption is the lowest among other regions leaving much room for improvement. With greater investment in driving insurance awareness and penetration, I am confident North India will be able to gain momentum and become financially protected in the true sense.”
The following findings reveal insights that highlight North India’s shift across financial priorities and anxieties studied by India Protection Quotient 4.0:
North leading term insurance ownership across regions North India registered the highest term insurance ownership at 45%, at par with South India. The ownership level isnotably higher than East (40%) and West (42%). North India also displayed the highest conversion ratio (from term awareness to term ownership) of 57%, at par with South India,
Children’s education and mental wellness form prominent worries The region’s security levels were at par with the overall average (56%) and marginally lesser than South India (57%).However, despite standing strong on financial security, 63% respondents worried about financing children’s education, followed by concerns over mental well-being (60%) and sustaining lifestyle/ expenses with current earnings (58%),
Focused on savings & investments Across regions, North India leads on savings/investmentswith 58% share of income going towards savings/ investment, followed by South (56%), East (56%) and West (55%). Savings objectives also saw some change with 46% saving for children’s education, followed by medical emergencies (45%), and retirement security (39%),
Less prompt on financial planning, health and fitness At par with South, 73% respondents in North India were proactive about financial planning, though far lesser when compared to East and West (75%). 75% respondents were also conscious of their personal wellbeing and maintaining a fitness regime,
55% feel term cover is insufficient; premium and cover form critical purchase factors for term insurance in North 3 in every 5 respondents in the region owning term insurance believed their term cover was insufficient to safeguard the future of their family. Additionally, 71% and 73% term insurance owners weighed the importance of cover and premium when purchasing term plans. 54% found claims settlement ratio to be an important parameter, while 50% sought agent accessibility.