India’s Tier II cities like Ludhiana, Jaipur, Patna and Pune beat metros in terms of buying term insurance or pure insurance products, as per a report.
According to India Protection Quotient survey (IPQ) commissioned by Max Life Insurance, awareness about term insurance products has increased post COVID-19 pandemic.
There has been steady progress seen in preference of online channels to purchase term insurance, while agents remain the top channel of purchase with 2 out of 3 urban Indians opting for it, it said.
The latest study IPQ 5.0 was conducted among 3,500 respondents in top 25 cities.
As COVID-induced anxieties take a backseat, inflation has emerged as a predominant concern for urban Indians, it added.
Beginning with a Protection Quotient of 35 in 2019, India has come a long way, it said, adding as per the latest edition of the survey, urban India showcased a positive movement, climbing up
8 points on the Protection Quotient to 43, signalling steady progress in the country’s overall financial protection levels.
The survey 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 per cent.
According to IPQ 5.0, with respite from health-related worries, urban India has begun reprioritising investments in savings plans for life insurance.
Max Life Insurance Managing Director Prashant Tripathy 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.”
This year, he said, the study points out that urban India transition to a more secure space, as health anxieties take a backseat.
Additionally, he said, while India has begun recognising the real value of term insurance, ownership remains an area of challenge that the life insurance industry will need to work hard to address.