Urban India’s Life Insurance Ownership Reaches Record High
Axis Max Life Insurance Ltd., in partnership with Kantar, has released its seventh India Protection Quotient (IPQ) survey, revealing that life insurance ownership among urban Indians has reached an all-time high of 78%. The survey, which covered 6,360 households across 25 Indian cities, indicates a significant improvement in financial preparedness and protection awareness.
Key Findings of the Survey
The IPQ 7.0 survey shows that urban India’s Protection Quotient has risen to 48, up from 35 in 2019, demonstrating continued progress in the country’s financial preparedness. The Knowledge Index has also improved to 63, indicating increased awareness and understanding of life insurance products. Notably, ‘Cover’ has overtaken ‘Premium’ as the key consideration in term life insurance purchases, with 3 in 4 urban respondents prioritizing coverage over cost.
Regional Variations in Financial Preparedness
The survey highlights regional differences in financial preparedness. The South Zone remains the most financially prepared, driven by increased term insurance and savings product ownership. The West Zone has significantly closed the gap, achieving the highest term plan ownership ever recorded in IPQ history. Tier 2 cities have shown notable progress in life insurance ownership, rising from 62% to 66%.
Demographic Insights
The survey reveals interesting demographic trends. 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 a modern approach to balancing lifestyle and security. However, a divergence in protection levels among working men and women was observed, with men seeing a rise in their Protection Quotient to 50, while working women’s Protection Quotient remained at 48.
Implications and Future Directions
Prashant Tripathy, CEO and Managing Director of Axis Max Life Insurance, noted that the survey reflects a decisive shift in consumer priorities from cost sensitivity to genuine protection needs. However, the widening gender gap in financial security calls for deeper, more inclusive interventions. As urban India continues its journey towards greater financial preparedness, the need for gender-sensitive financial strategies and improved accessibility to life insurance products remains critical.
The India Protection Quotient survey has become a powerful barometer of India’s financial resilience, driving the protection narrative forward. As the industry moves forward, understanding emerging consumer priorities and addressing financial anxieties will be crucial in building a more comprehensively protected India.
