Covid helped in Insurance awareness

The ongoing pandemic situation has accelerated the knowledge and ownership of insurance in the country, and this is reflected in the findings of the latest edition of ‘India Protection Quotient’ (IPQ 3.0), said Prashant Tripathy, Managing Director and CEO, Max Life Insurance.

Releasing the findings of the third edition of its survey, conducted in association with Kantar, Tripathy noted that Indian households have, in the current times, increased focus on savings and investments while reducing spend on both basic needs and luxury. In the backdrop of Covid-19, however, Indians continue to feel financially insecure, he added.

Financial anxieties related to Covid-19, and the ability of current earnings to cover expenses, have emerged as top concerns for urban Indians, said Tripathy.

As per the survey, urban India witnessed a positive movement of 4 points on the Protection Quotient scale from 35 (as per IPQ 2.0) to 39 (as per IPQ 3.0).

Conducted in the most uncertain and challenging times, Max Life IPQ 3.0 assesses the notable shifts in the attitude of urban Indians from the beginning of the lockdown in March 2020, through the different phases of Covid-19, until the announcement of viable vaccine in December.

Around 4,357 respondents were surveyed via face-to-face interviews with adequate safety measures across 25 cities comprising 6 metros, 9 Tier I and 10 Tier II cities, making this one of the most comprehensive financial studies carried out during Covid-19 situation.

The survey revealed that the degree to which 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 IPQ 2.0 to 71 per cent.

The degree to which Indians feel financially secure and prepared, or the Security Level, dipped by 300 bps to 57 per cent amid uncertain times.

Notably, the survey shows a significant growth of Knowledge Index across all cities, age and gender, highlighting responsible outlook of urban India amid uncertain times.