- Mumbai performs significantly well with a life insurance uptake of 76%
- Term insurance only makes up a poor 19% of the total respondents of the survey in the city
- 13% of the respondents have no financial protection from friends/family in case of critical illness
Mumbai, 23rd July 2019: Max Life Insurance Co. Ltd (“Max Life/ Company”), one of India’s leading private life insurers, today unveiled that 76% of Mumbai’s respondents owns life insurance. As per the ‘India Protection Quotient’ survey conducted by Max Life and Kantar IMRB, Mumbai stands at a Protection Quotient of 39 out of 100, relatively higher than the national average of 35 for urban India.
This three dimensional survey determined policyholders’ level of financial preparedness to face future uncertainties, by studying their life and term insurance awareness, ownership and primary fears, preferences, triggers when purchasing policies.
V Viswanand, Deputy Managing Director, Max Life said: “The India Protection Quotient survey reveals that Mumbai – the financial hub of India falls short on the life insurance protection and knowledge index scale in comparison to other leading cities. While the percentage of life insurance owners in Mumbai are significantly higher than the national average, the term insurance uptake falls a lot lower, which evokes a major worry. Term insurance is the cheapest and most fundamental form of financial protection. There is definitely scope for the citizens to realign their approach to life insurance by understanding the true value of protecting one’s family from the uncertainties of life. We’re certain that the survey’s compelling findings will help bring about change in the underlying attitudes and overall behavior of people around life insurance.”
Mumbai ranks significantly higher on life insurance protection and knowledge index amongst other cities
While the Protection Quotient (the degree to which one feels protected and mentally prepared for future uncertainties on a scale of 0-100) for urban India stands at a modest 35, protection quotient of the West region stands at a relatively lower 33. Mumbai’s protection quotient of 39, ranks the city relatively higher on the scale, ahead of other cities such as Bangalore, Pune, Kolkata, Bhubaneshwar, etc.
Additionally, with a knowledge index score of 46, citizens of Mumbai were found to be more aware of insurance as a category than the country as a whole (knowledge index of 39).
Poor term insurance ownership of 19% of the total respondents in the city, almost half the city’s respondents unaware of its benefits
Against the national average of 65% life insurance ownership, the survey revealed that the West region in India owns lesser life and term insurance (57% and 16% respectively) when compared to East (72% and 24%), North (59% and 22%), South (74% and 24%) and the country on a national level (65% and 21%).
76% of Mumbai’s respondents owns life insurance, ranking the city significantly higher on the scale than the nation which is pegged at an average of 65%. However, with term insurance ownership only making a paltry 19% of survey respondents in the city, the city is grossly underprepared to face the financial instability caused by eventualities of life, considering term insurance awareness stands at a surprising 51% in comparison to urban India’s level of awareness of 47%, making it a cause of concern.
City is not financially prepared to deal with critical illnesses
With relatively lower life insurance and ownership, majority of the West region feels that savings will last longer than one year in case of critical illness of the bread winner, while more than 80% of the respondents in West feel that friends, family or colleagues will support financially in case funds dry up due to critical illnesses or death.
87% of Mumbai’s respondents believe there will be someone to support them financially if they were to be diagnosed with a critical illness. Less than 20% are aware of the treatment costs of diseases. 17% realized that critical illness can prey upon the family, whereas 36% have not even thought about it.
21% of Mumbai respondents feels that their savings would last less than a year if critical illness or death was to befall. About 11% of the city’s respondents feels they have no one to support them in the event of critical illness or death.
Similarity in insurance savings pattern between men and women in West India
In urban India, the ownership of life insurance and term insurance is lower in females as compared to males. While 59% of women as against 68% men in urban India own life insurance policies and only 19% women are term insurance owners in comparison to 22% men.
The survey also pointed at a notable life insurance gap among the men and women of West India. While 50% women own life insurance as compared to 60% males, term insurance ownership among women in the region is also a lower 14% as compared to 16% men who own term plans.
Moreover, 39% of women and men in West India equally spend their earnings towards basic expenses. The savings objective for both in the region are also mostly concentrated, where close to 62% men and women save for old age security and retirement.
Saving for financial future, old age security is a priority for millennials in West India
The survey found that Urban Indian Millennials in the age group of 25 – 30 years are seen to spend on travel, luxury, with nearly 43% not even thinking of protection of their families. Only 44% of youth are aware of term insurance and just 17% own it. It was found that an alarming 22% of urban Indian youth do not even consider buying a life insurance policy due to other investments that they have.
In West India, the young prioritize protection more in comparison to rest of urban India. Millennials in the region save more for retirement/old age security (59%) as against saving for a vacation (12%) or to buying a car (13%).
However, only 41% of millennials are aware of term insurance and just 15% own it. It was found that 19% of the region’s millennials do not even consider buying a term insurance policy due to other investments that they have.
Sustenance of lifestyle and savings for children among the greatest fears pushing West India to think about term insurance
The survey revealed that for more than 50% of urban Indian the biggest fears related to the demise of the breadwinner are financial insecurity and impact on their current lifestyle.
In comparison, it was found that 51% of West India’s biggest fear relate to sustenance of current family lifestyle expenses in current earning and 49% worry about finances for their children.
About Max Life Insurance (www.maxlifeinsurance.com)
Max Life Insurance Co. Ltd (“Max Life”/ “Company”), one of the leading life insurers in India, 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, which is a leading Indian multi-business corporation, while Mitsui Sumitomo Insurance is a member of MS&AD Insurance group, which is amongst the leading insurers in the world. Max Life Insurance has a vision to be the most admired life insurance company by securing the financial future of its customers.
Max Life offers comprehensive protection and long-term savings, through its high-quality multi-channel distribution including agency and third distribution partners. A financially stable Company with a strong track record over 19 years, Max Life offers superior investment expertise. The Company has a strong customer-centric approach focused on need-based sales and quality service delivered through its superior human capital.
During the financial year 2018-19, Max Life achieved ‘Gross Written Premium’ of Rs. 14,575 crore and had sum assured in force of Rs. 7,03,972 Crore. As on 31st March 2019, the Company had Rs. 62,798 crore of AUM and a share capital including reserves and surplus of Rs. 2,767 crore. The Company has nearly 35 lakh customers serviced by its 12,082 employees and 48,522 agent advisors through 239 offices across the country.
About Kantar IMRB
Kantar IMRB is a pioneer of market research services in Asia. With over 40 years of emerging market expertise, it builds customised solutions to create powerful growth paths for its client’s. Kantar IMRB offers unparalleled depth and width of services across sectors & categories by crafting unique solutions and/or leveraging Kantar TNS’s global solutions. The company also has rich data assets in its large array of syndicated studies and data alliance partnerships. With its multidisciplinary and multi-cultural workforce, Kantar IMRB is at the cutting edge of market research and consulting services.
Disclaimer
- The study is conducted in top 15 urban metro and Tier 1 cities; hence, its findings are representative of metro and Tier 1 cities of urban India only.
- Metro – Delhi, Kolkata, Chennai, Bangalore, Hyderabad, Mumbai
- Tier 1 – Ludhiana, Jaipur, Lucknow, Patna, Bhubaneshwar, Vishakhapatnam, Ahmedabad, Bhopal, Pune
- The minimum sample to conclude any findings of the study is 270 with an error margin of +- 5.964%
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