Urban India’s Life Insurance Ownership Hits All-Time High
Axis Max Life Insurance Ltd. has released its seventh India Protection Quotient (IPQ) survey, conducted in partnership with Kantar, revealing significant advancements in urban India’s financial protection landscape. The survey, which tapped 6,360 households across 25 Indian cities, found that life insurance ownership has reached an unprecedented 78% among urban Indians.
Key Findings of IPQ 7.0
- Urban India’s Protection Quotient has risen to 48 from 35 in 2019, indicating improved financial preparedness.
- Life insurance ownership has reached an all-time high of 78%, with increased adoption across various city tiers.
- The Knowledge Index has improved to 63, showing greater awareness and understanding of life insurance products.
- Financial security levels have surpassed pre-pandemic figures, reaching 68%.
Shift in Consumer Priorities
For the first time in seven editions, ‘cover’ has overtaken ‘premium’ as the primary consideration for term life insurance purchases, with 3 in 4 urban respondents prioritizing coverage over cost. This shift indicates a significant change in consumer priorities, moving from cost sensitivity to genuine protection needs.
Demographic Insights
- Gen-Z Leads in Financial Planning: Gen-Z has emerged as a standout cohort with a Protection Quotient of 41 and two-thirds owning life insurance products. They demonstrate strong mid-term financial planning and purposeful saving behavior.
- Gender Disparity: While working men’s Protection Quotient rose to 50, working women’s remained at 48. Women reported lower financial security for key life milestones, highlighting the need for gender-sensitive financial strategies.
- Salaried vs Self-Employed: Salaried individuals continue to lead in Protection Quotient, while the self-employed showed gains in financial security but lagged in insurance ownership.
Regional Variations
- The South Zone retains its position as the most financially prepared region, driven by increased term insurance and savings product ownership.
- West India has closed the gap significantly, achieving the highest term plan ownership ever recorded.
- Tier 2 cities showed notable progress in life insurance ownership, rising from 62% to 66%.
Prashant Tripathy, CEO and Managing Director of Axis Max Life Insurance, emphasized that the survey has become a critical barometer of India’s financial resilience. He noted the widening gender gap in financial security calls for deeper, more inclusive interventions.
The India Protection Quotient survey continues to serve as a vital tool for understanding urban Indians’ financial protection mindset, helping industry stakeholders and policymakers gauge emerging consumer priorities and drive more comprehensive financial protection across the country.
