Urban India witnessed a positive movement of 4 points on the India Protection Quotient (IPQ) scale from 35 (in last survey) to 39 (in this survey) as per the findings of a survey conducted by Max Life India in association with Kantar.
However, it was found that in the backdrop of COVID-19, India continued to feel financially insecure.
The survey assessed the notable shifts in attitude of urban Indians from the beginning of the lockdown in March, through the different phases of COVID-19, until announcement of a viable COVID-19 vaccine in December 2020, Max Life said.
Around 4,357 respondents were surveyed via face-to-face interviews across 25 cities comprising of 6 metros, 9 Tier I and 10 Tier II cities, it added.
As per the survey urban India has grown more anxious about financial security and preparedness in the last one year and there has been a significant shift towards increasing savings and investments.
Financial anxieties related to COVID-19, and ability of current earnings to cover expenses have emerged as top concerns for urban Indians, it said.
The survey revealed that the degree to which urban Indians are aware about life insurance products or the Knowledge Index moved up by 9 points to 55 and life insurance Ownership levels increased by 500 bps from IPQ2.0 to 71%.
The degree to which urban Indians feel financially secure and prepared or the Security Level dipped by 300 bps to 57% amidst uncertain times.
The findings have shown a significant growth of Knowledge Index across all cities, age and gender.
In the wake of the pandemic, the survey witnessed an increase in urban India’s levels of term insurance awareness and term insurance ownership.
Now, 28% of urban Indians own term products, notably higher than the earlier 24% as per the previous survey.
“The survey reveals that while issues surrounding financial preparedness were magnified during the challenging COVID-19 times, there are long-term lessons to be learned when it comes to addressing and acknowledging financial protection. Slowly but gradually, we are seeing urban India move towards proactive financial planning that can avert anxieties and help build resilience,” said Prashant Tripathy, MD and CEO, Max Life Insurance.
Soumya Mohanty, MD and CCO, Kantar Insights, South Asia said the survey presented useful insights around people’s attitudes towards savings, investments, and the overall idea of financial protection in uncertain times.