3 Out Of 4 Urban Indians Own Life Insurance Products: Survey

Despite a modest increase from 63 per cent in IPQ 5.0 to 65 per cent in IPQ 6.0, urban Indians' financial security levels have not fully rebounded to pre-pandemic levels

Urban India has made significant strides in financial preparedness, with three out of four urban Indians now possessing life insurance products, according to the India Protection Quotient survey’s sixth edition (IPQ 6.0). In addition, the Protection Index has reached an all-time high of 45 in IPQ 6.0, up from 43 in IPQ 5.0, indicating a positive trend in the nation's increasing awareness and adoption of protection measures. 

As per the survey, the Knowledge Index rose from 57 (IPQ 5.0) to 61 (IPQ 6.0), and life insurance ownership levels climbed from 73 (IPQ 5.0) to 75 (IPQ 6.0). Over a five-year span, the India Protection Quotient has seen a remarkable 10-point increase, from 35 in IPQ 1.0 to 45 in IPQ 6.0, highlighting urban India's continuous endeavour to enhance financial resilience.

In collaboration with marketing data and analytics company KANTAR, Max Life Insurance Company released this report on Thursday.

The latest insights in the report reveal a shift in the nation's financial well-being. Despite a modest increase from 63 per cent in IPQ 5.0 to 65 per cent in IPQ 6.0, urban Indians' financial security levels have not fully rebounded to pre-pandemic levels. Consistent with last year's findings, metro cities are nearing the 50-point milestone this year, boasting a Protection Quotient of 49 points. Conversely, life insurance ownership and adoption in Tier II towns remain stagnant, with an IPQ lagging at 36 points. 

Meanwhile, South India maintained its status as the most financially protected region with a Protection Quotient of 49 points. This was followed by West India, which exhibited a notable improvement in financial preparedness from 42 points in IPQ 5.0 to 46 points in IPQ 6.0. However, the North and East zones lagged behind in financial protection, scoring 41 and 40 points, respectively.

Prashant Tripathy, CEO and Managing Director of Max Life Insurance said, "Over the past five editions, the India Protection Quotient has become a true barometer for measuring urban India's financial protection levels. By including incremental cohorts year-on-year, IPQ has become stronger, bigger, and more inclusive. Today, we are witnessing a remarkable shift in the financial consciousness of this diverse group, with 3 out of 4 urban Indians now owning life insurance.”

Revealing significant demographic insights, IPQ 6.0 highlights an intriguing trend wherein millennials closely trail older age groups in financial preparedness, scoring 45 and 46 for millennials and non-millennials, respectively. Conversely, Gen Z emerges as the least financially shielded age group, with a Protection Quotient of 42 points, primarily attributed to lower insurance ownership. 

In a noteworthy accomplishment, working women have notably narrowed the financial protection gender gap, with their Protection Quotient surging to 47 points, aligning with their male counterparts. Notably, 8 out of 10 working women now invest in life insurance, signifying a positive shift.