Urban Chennai’s protection quotient increases by 7 points to 46 during Covid-19
Urban Chennai’s protection quotient increases by 7 points to 46 during Covid-19 pandemic, city ranks second highest across metros in term insurance awareness and ownership: reveals Max Life’s India Protection Quotient 3.0 Survey
Key Findings of the Survey
Urban Chennai witnesses increase in life insurance awareness and ownership during pandemic
Term insurance awareness and insurance second highest across metros
Security levels relatively steady during Covid-19, city feels financially more insecure about sustaining family’s basic expenses, medical expenses
Urban Chennai relatively less proactive about financial planning, overall health and fitness
19th March 2021, Chennai: 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, Chennai witnessed a positive movement of 7 points on the protection quotient scale from 39 (as per previous IPQ 2.0 survey) to 46 points (as per IPQ 3.0). However, it was found that in the backdrop of Covid-19, the city continues to feel financially insecure.
Conducted in the most uncertain and challenging times, Max Life IPQ 3.0 assesses the notable shifts in urban Chennai’s respondents’ 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 urban Chennai is aware about life insurance products or the knowledge index moved up by 9 points to 66 as compared to the earlier 57 (per IPQ 2.0). Consequently, the city also registered a slight increase in life insurance ownership from the earlier 80% (during IPQ 2.0) to 82% now.
In the backdrop of Covid-19, urban Chennai was the only other metro city (along with Hyderabad) to register an increase in overall security levels, even if by only 1%. The city was also found to be relatively less anxious about financial commitments and was more prepared to sustain lifestyle and expenses with current earnings and provide for family’s financial needs in the absence of the breadwinner, in comparison to other metro cities.
Furthermore, the survey revealed that across metros, urban Chennai registered the second highest term insurance awareness and term ownership of 73% and 42%, respectively.
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 Chennai, 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 Chennai 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 Chennai’s shift across financial priorities and anxieties, compared from pre Covid-19 times:
Urban Chennai’s security levels relatively steady during COVID-19 however city feels financially insecure about sustaining family’s basic expenses, medical expenses
In the backdrop of Covid-19, the degree to which Chennai feels financially secure and prepared remained steady. Amidst uncertain times, Chennai’s security levels even displayed marginal improvement from the earlier 51% (IPQ 2.0) to 52% now but remained lower in comparison to other metros such as Bengaluru (73%) and Hyderabad (80%).
The survey further revealed that amidst total or partial job losses, reduced income levels and escalated medical expenses only 44% Chennai respondents said they feel financially secure about fulfilling family’s basic needs whereas only another 44% felt secure about medical expenses. Only 54% felt financially secure with regards to their jobs/business.
City’s anxiety levels stand at 62%; financial independence post retirement among topmost anxieties
On the back of health and financial challenges, the survey revealed that anxiety levels of urban Chennai stood at 62%, lesser in comparison to Bengaluru (64%) and Mumbai (64%). ‘Financial independence post retirement’ was the topmost anxiety for 72% in Chennai. ‘Financial security of family in the absence of breadwinner’, ‘inadequacy of funds in case of critical illness’ and ‘sustaining lifestyle and expenses with current earnings’ were the three other topmost anxieties.
Urban Chennai relatively less proactive about financial planning, overall health and fitness
Despite an environment of increasing worries and reducing security, IPQ 3.0 revealed that Chennai remained relatively less proactive about financial planning, overall health and fitness. In the backdrop of Covid-19, only 62% Chennai respondents said that they’re proactive about financial planning – considerably lesser than 70% in Bengaluru and 77% in Delhi. Furthermore, only 64% said that they believe in saving more than spending.
Despite the pandemic having medical implications, city’s residents are not actively prioritizing health and fitness. Only 60% of Chennaites, as opposed to 80% Bangaloreans and 89% Mumbaikars, said that they actively look for products that will improve immunity whereas only 63% pay attention to health and fitness regime.
City has the second highest term insurance awareness and ownership across metros
Among all metros, Chennai’s term insurance awareness and term ownership stood the second highest. Registering an uplift of 9% compared to IPQ 2.0, the city’s term awareness level of 73% increased significantly from the earlier 64%. The same was at par with term insurance level of Delhi, and higher in comparison to Kolkata (41%), Hyderabad (54%) and Bengaluru (64%).
On the other hand, the city’s term insurance ownership also remained the second highest across metros. It increased from the earlier 36% (as per IPQ 2.0) to 42%, second only to term ownership levels of Delhi at 44%. The same indicates that while urban Chennai is increasingly waking up to the challenges of pandemic and realizing need for greater financial protection, there is scope for great term insurance uptake.
About India Protection Quotient
Instituted in 2019, India Protection Quotient is an annual survey by Max Life 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%