Key Findings of the Survey
- Mumbai witnesses significant increase in life insurance awareness and ownership
- While city continues to lead amongst all metros in term insurance awareness, ownership of term insurance at 22% ranked the lowest
- Security levels decline, city feels most insecure about job, fulfilling retirement needs
- Mumbai’s anxiety levels stood at an average of 64%; top anxieties include untimely death of breadwinner, cost of treatment of covid-19 infection, inadequacy of fund in case of critical illness in family
9th February 2021, Mumbai: Reinforcing its commitment towards ensuring greater financial protection for the country, Max Life Insurance Company Ltd. (“Max Life”/ “Company”) unveiled the findings of the third edition of its flagship survey ‘Max Life India Protection Quotient 3.0 (“IPQ 3.0”)’ in partnership with KANTAR. As per the survey, Mumbai witnessed a positive movement of 5 points on the protection quotient scale from 41 (as per IPQ 2.0) to 46 points (as per IPQ 3.0). However, it was found that in the backdrop of Covid-19, the city still continues to feel financially insecure.
Conducted in the most uncertain and challenging times, Max Life IPQ 3.0 assesses the notable shifts in Mumbai’s residents’ attitudes from the beginning of the lockdown in March 2020, through the different phases of COVID-19, until announcement of viable COVID – 19 vaccines in December 2020. Around 4,357 respondents were surveyed via face-to-face interviews with adequate safety measures across 25 cities comprising of 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 Mumbaikars are aware about life insurance products or the knowledge index moved up by a whopping 15 points to 70 during the pandemic and life insurance ownership levels increased from 87% during previous survey to 91% during IPQ 3.0, making it the most insured city across all metros in the country. Kolkata came next in line with 89% life insurance ownership, whereas the capital city Delhi, displayed an ownership level of 81%.
In the backdrop of Covid-19, Mumbai’s security levels also plummeted. While the city grew more anxious about financial security and preparedness in the last one year, financial anxieties related to security of family’s financial wellbeing in the absence of breadwinner, cost of treatment of Covid-19 infection and inadequacy of funds in case of critical illness in family emerged as top concerns for the citizens of Mumbai.
Furthermore, the survey witnessed a notable increase in urban Mumbai’s levels of term insurance awareness in the wake of the pandemic. So much so that, Mumbai now leads among metro cities by demonstrating highest term insurance awareness at 74%, surpassing leading metros such as Delhi and Chennai. On the flipside however, its term insurance ownership of 22% ranked the lowest among all metros.
V. Viswanand, Deputy Managing Director, Max Life said: “The latest findings of our marquee survey ‘India Protection Quotient 3.0’, present us with valuable insights on urban India including the city of Mumbai, and how it navigated finances over the course of an unprecedented and truly challenging year. While the pandemic has resulted in some positive outcomes when it comes to health, proactive financial planning and preparing for the future, there is a long way to go. We’re certain the findings will be instrumental in enabling Mumbai realize the importance of life insurance in safeguarding the future of loved ones amidst uncertain times, and encourage them to embrace comprehensive financial protection in the post Covid-19 era.”
The following findings reveal insights that highlight urban Mumbai’s shift across financial priorities and anxieties, compared from pre Covid-19 times:
- Mumbai’s financial security levels dip in the backdrop of COVID-19, city feels most insecure about job, fulfilling retirement needs
In the backdrop of Covid-19, the degree to which Mumbaikars feel financially secure and prepared deteriorated. Amidst uncertain times, Mumbai’s security levels declined from the earlier 67% to 62% now, considerably lower even in comparison to other metro cities’ security levels such as Hyderabad at 80% and Delhi at 73%.
The survey further revealed that amidst total or partial job losses, reduced income levels and escalated medical expenses only 55% Mumbai respondents felt financially secure about fulfilling family’s basic/luxury needs post retirement. Security of job/business is felt by only 54% Mumbaikars and only 51% felt secure about medical expenses involving high expenditure.
- Untimely death of breadwinner, cost of Covid-19 infection treatment, inadequacy of fund in case of critical illness in family amongst Mumbai’s topmost anxieties
On the back of health and financial challenges, the survey revealed that anxiety levels of Mumbaikars stood at 64% during Covid-19. Even while lower in comparison to hyper anxious metro cities Kolkata (78%) and Delhi (71%), Mumbai’s anxiety levels were higher in comparison to certain other metros - Hyderabad (49%) and Chennai (62%).
Financial security of family in the absence of breadwinner was the topmost anxiety for 74% Mumbaikars, followed by cost of Covid-19 treatment, inadequacy of funds in case of critical illness in the family and financial independence upon retiring which were the three other topmost anxieties.
- The pandemic compelled Mumbaikars to be more proactive about their health, fitness, financial planning
With a sense of increasing worries and reducing security, IPQ 3.0 revealed that urban Mumbaikars are becoming more proactive about financial planning and overall health and fitness. In the backdrop of Covid-19, 81% Mumbai respondents said that they’re proactive about financial planning and 86% said that they believe in saving more than spending. With pandemic having medical implications, city’s residents are also prioritizing health and fitness. A notable 89% of Mumbai respondents said that they actively look for products that will improve immunity and 90% pay attention to health and fitness regime.
- Mumbai continues to lead in term insurance awareness; but falls behind in term insurance ownership
Mumbai’s term insurance awareness saw a sharp increase of 12% compared to IPQ 2.0, however term ownership declined by 5% amidst pandemic. Surpassing all leading metro cities, Mumbai now leads by demonstrating highest term insurance awareness of 74%, but on the other hand its term insurance ownership of 22% ranked the lowest and remained abysmally poor in comparison to term ownership levels of Delhi at 44% and Chennai at 42%.
The same indicates that while urban Mumbai is increasingly waking up to the challenges of pandemic and realizing need for greater financial protection, term conversion is yet to see an uptake.
About India Protection Quotient
Instituted in 2019, India Protection Quotient is an annual survey by Max Life Insurance in association with Kantar aimed to understand the pulse of the Indian consumers in the financial protection space. Launched with the sub-objective to increase uptake of term insurance, as the most fundamental and economical form of life insurance, the survey aims to reveal the state of urban Indians with regards to current financial security levels, changing savings & investment patterns, key anxieties & triggers of financial protection in a contemporary world.
India Protection Quotient the degree to which Indians feel protected from future uncertainties, on a scale of 0 to 100, is a proprietary tool developed in partnership with Kantar. It is based on the attitudes, mental preparedness around future uncertainties, awareness, and ownership of life insurance product categories (term, endowment and Unit Linked plans).
About Max Life Insurance (www.maxlifeinsurance.com)
Max Life Insurance Co. Ltd. (“Max Life”) is a joint venture between Max Financial Services Ltd. and Mitsui Sumitomo Insurance Co. Ltd. Max Financial Services Ltd. is a part of the Max group, an Indian multi business corporation, while Mitsui Sumitomo Insurance is a member of MS&AD Insurance group.
Max Life offers comprehensive protection and long-Term savings life insurance solutions, through its multichannel distribution including agency and third distribution partners. Max Life has built its operations over almost two decades through need-based sales process, a customer-centric approach to engagement and service delivery and trained human capital.
As per public disclosures, during the financial year 2019-20, Max Life achieved gross written premium of Rs. 16,184 crore. As on 31st March 2020, the Company had Rs. 68,471 crore of assets under management (AUM) and a Sum Assured in Force of Rs. 913,660 crore. For more information, please visit the company's website at www.maxlifeinsurance.com
Kantar is the world’s leading evidence-based insights and consulting company. We have a complete, unique and rounded understanding of how people think, feel and act; globally and locally in over 90 markets. By combining the deep expertise of our people, our data resources and benchmarks, our innovative analytics and technology, we help our clients understand people and inspire growth.
The study is conducted in top 25 urban metro, Tier 1 and Tier 2 cities; hence, its findings are representative of metro, Tier 1 and Tier 2 cities of urban India only.
· Metro – Delhi, Kolkata, Chennai, Bangalore, Hyderabad, Mumbai
· Tier 1 – Ludhiana, Jaipur, Lucknow, Patna, Bhubaneshwar, Vizag, Ahmedabad, Bhopal, Pune
· Tier 2 – Dehradun, Moradabad, Guwahati, Bokaro, Kolhapur, Jamnagar, Raipur, Ujjain, Hubli-Dharwad, Tiruchirappalli
· IPQ 2.0 Vs IPQ 3.0 data comparison is amongst 25 markets only [6 metros, 9 Tier 1 markets and 10 Tier 2 markets]
· The minimum sample to conclude any findings of the study is 270 with an error margin of +-5.964%.