Max Life Insurance Company has unveiled the findings of the fifth edition of its flagship survey India Protection Quotient survey (IPQ)* conducted in partnership with KANTAR. Celebrating its 5th edition, the study has captured the financial journey of India over the past 5 years, setting its foundation as a reliable indicator of India’s financial protection and preparedness. First launched in 2019, the study was also conducted in the most uncertain and challenging times during the COVID-19 pandemic, and has so far reached out to more than 30,000 respondents in seven different surveys.
Beginning with a Protection Quotient of 35 in 2019, India has come a long way. As per the latest edition of the survey, urban India showcased a positive movement, climbing up 8 points on the Protection Quotient to 43 (as per IPQ 5.0) from IPQ 1.0 – signaling 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%.
Against the backdrop of a waning pandemic, the survey highlights a massive recovery in Security Levels; it is observed to be steadily coming back to pre-pandemic levels- starting from 66% in IPQ 1.0 to an all-time– low of 57% during the pandemic, and back to 63% in this edition.
According to IPQ 5.0, with respite from health-related worries, urban India has begun reprioritizing investments in savings plans for life insurance showcasing sustained growth in ownership – up from 24% in IPQ 1.0. to 38% in IPQ 5.0, while term plan1 adoption rates have grown ~50% in 5 years.
Commenting on the launch of IPQ 5.0, Prashant Tripathy, Managing Director and CEO, Max Life Insurance 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. Since then, the India Protection Quotient survey has evolved into a financial health indicator, effectively enabling Max Life and the life insurance sector uncover the pulse of the nation on financial preparedness.”
He further commented, “This year, we see urban India transition to a more secure space, as health anxieties take a backseat. Additionally, while India has begun recognizing the real value of term insurance, ownership remains an area of challenge that the life insurance industry will need to work hard to address. While the current findings of study instill confidence in India’s trajectory towards financial independence, a challenging journey lies ahead of us, one that will be marked by the lessons of the past as well as insights that will shape the future of the country’s life insurance sector.”
Soumya Mohanty, Managing Director and CCO, Kantar Insights, South Asia commented on the results of the survey, “As a flagship survey, the India Protection Quotient study has played an instrumental role in serving as a valuable study that explores key consumer insights with a statistical lens. We are pleased to be partners of Max Life in their endeavor to increase awareness of life insurance and ensuring financial resilience in the nation.”