IPQ 6.0 reveals South Zone leads in Financial Security with 8 in 10 urban residents Insured

Key Findings of the Max Life IPQ 6.0 Survey

For 1 in 4 in South India, high premiums act as a big barrier for Term purchase
South India leads in Rider Awareness across zones with an average 20 points increase
Hyderabad’s Protection Quotient stands at 44: City ranks 2nd among all South Indian Metros
Hyderabad’s life insurance security levels at 80%, ownership level at 74%, and Knowledge index at 59

15th March 2024, Hyderabad: Max Life Insurance Company Ltd. (“Max Life”/ “Company”) today unveiled the South zone findings of the sixth edition of its flagship survey, the India Protection Quotient Survey (IPQ)*, conducted in partnership with KANTAR, the world’s leading marketing data and analytics company. Tapping 4,700 respondents across 25 Indian cities, this widely inclusive survey uncovers urban India’s pulse on financial protection. Marking its 6th edition, the IPQ stands as one of the most comprehensive and long-running financial studies, covering varied cohorts, including Generation Z, women, and millennials, carrying forward the theme of ‘Protection for All’.

As per the survey, South India continues to be India’s most financially protected zone with a Protection Quotient of 49, with progress made across all three aspects – Knowledge Index at 65 points (increase of 8 points), Life Insurance ownership levels at 80% (increase of 2%), and Security levels at 77% (equal to IPQ 5.0). 8 in 10 urban respondents own life insurance in South India, while 4 in 10 urban respondents own one or more savings products.

The survey also revealed the degree to which Hyderabad’s respondents are financially prepared for life’s uncertainties. Hyderabad’s protection quotient is at 44 points in IPQ 6.0, with the city’s knowledge index at 59. The overall Security Level for Hyderabad is at 80%. From a city perspective, Bangalore maintained its significant lead in IPQ scores but saw a decline in ownership levels, while Chennai made significant improvements in ownership and security levels.

Prashant Tripathy, CEO and Managing Director, Max Life Insurance said, “South India’s urban population has set a great example by consistently making proactive strides in safeguarding their future by investing in life insurance. While the progress is reflected in the zone’s consistent leadership in financial preparedness, there remain areas of improvement necessitating initiatives that target underserved segments. This requires participation from all stakeholders to make insurance accessible and affordable for all.”

South India-specific financial priorities and anxieties:

· South India needs to be proactive about retirement planning

Anxiety around prioritizing a family’s aspirations and financial independence in retirement has seen an increase in urban South India. Increasing medical expenses and family aspirations stand at 68 and 66, respectively, as compared to other regions. Savings for meeting the future needs of children remain key objectives for the urban south at 59; however, retirement planning took a backseat as compared to IPQ 5.0, which stood at 34.

· South India leads in Term Awareness, but West India overtakes in Ownership

Awareness sees a huge spike in South India at 78%; however, ownership seeps a marginal dip at 33%. For the zone, premiums aren’t a big barrier to buying term plans, like they are in other zones; however, undergoing medical tests is a much more critical barrier for the South.

The following findings reveals urban Hyderabad’s shift across financial priorities and anxieties:

· Hyderabad’s respondents are more proactive about keeping their health in shape – The city sees the highest percentage of people who pro-actively do health check-ups to stay fit at 65%. They also have the highest share of people who regularly engage in fitness activities, with 61% saying they regularly resort to either meditation, yoga, gyms, running, etc. This trend is also seen in their dietary preferences, with almost 1 in 2 also consuming products to boost their immunity.

· Children dominate as an objective for undertaking Savings – As many as 64% of people claim they are saving for their children’s education and marriage. Saving for a house is the third-most important priority at 36%.

· Term Awareness sees a rise in the city – Hyderabad’s term insurance awareness rate increased significantly from 63% in IPQ 5.0 to 88% in the current edition. However, the city’s term insurance uptake stands at 25%. For South India, focus on health also shows up through increased awareness of product riders that builds into health uncertainties.

Read more about the India Protection Quotient at – https://www.maxlifeinsurance.com/maxlife-ipq

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