The flagship survey of Max Life Insurance, the India Protection Quotient (IPQ) Survey, was carried out in association with KANTAR, a marketing data and analytics business. This time, IPQ covered diverse demographics, which included women, Millennials, and Gen Z, underlying the theme of protecting all. According to the survey, three out of four urban Indians carry a life insurance policy, indicating that the country has made impressive strides towards financial preparedness.
According to IPQ 6, which provided important demographic insights, Millennials and non-Millennials scored 45 and 46, respectively, indicating that Millennials trail behind older generations in terms of financial preparation. With a security rating of 42, Gen Z is the least financially secure age group, mostly because of their inadequate insurance coverage. One significant accomplishment is closing the gender gap in working women’s financial security. A working woman’s protection index has increased to 47 points, matching her male counterpart. Notably, eight out of ten working women currently invest in life insurance.
Highlights Of The Survey
• The knowledge index has risen from 57 to 61 and the number of people with life insurance has climbed from 73 to 75.
• The India Protection Index showed a noteworthy 10-point increase over a five-year period, from 35 at IPQ 1 to 45 at IPQ 6, indicating Urban India’s ongoing efforts to strengthen financial resilience.
• The most recent data also points to a shift in the nation’s financial circumstances. The economic security of urban Indians has not yet entirely returned to pre-pandemic levels, notwithstanding a minor uptick from 63 per cent to 65 per cent.
• Based on observations made in the previous year, this year’s metropolis is nearly at the 50-point level with a protection index of 49 points.
• In comparison, Tier 2 cities continue to see stagnation in life insurance acceptance and ownership, with an IPQ of 36 points behind.
• With a protection index of 49 points, South India continued to be the region most financially protected, in line with previous findings.
• Western Indians came next, demonstrating considerable improvement in their financial readiness from 42 to 46 points.
• The northern and eastern zones fell behind by 40 and 41 points respectively, in terms of economic security.
Prashant Tripathy, CEO and Managing Director of Max Life Insurance explained that there is a remarkable shift in the financial consciousness of this diverse group, with three out of four urban Indians now owning life insurance. This opens up new opportunities in the fields of digital transformation, customised product development, and raising public awareness through campaigns that will promote the goal of ‘Insurance for All by 2047’ and guarantee even greater insurance penetration in the country.
The IPQ 6.0 also highlighted the significant discrepancy between the Metro and Tier II cities’ IPQ ratings, with Metro cities barely missing the halfway threshold at 49, Tier I cities coming in second at 45 points, and Tier II cities trailing behind at 36 points.
This discrepancy highlights the need for focused initiatives to overcome barriers to financial pliability and highlights the continuous challenge of raising life insurance awareness and accessibility in smaller metropolitan areas, as per the survey. Over the course of six years, the IPQ findings have revealed substantial data relating to financial behaviour, savings patterns, and insurance uptake among urban Indians, making it an indispensable marker of the country’s financial preparedness.