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  • Hyderabad ranks lowest on protection quotient, IPQ 4.0 reveals city lags in life insurance awareness and ownership

    Published on March 15, 2022

    • Protection quotient at 48 and life insurance ownership at 82% is lowest amongst metros
    • Security levels highest across cities

    Max Life Insurance Co. Ltd (“Max Life”) in association with Kantar recently unveiled the India Protection Quotient 4.0 survey. Tapping 5,729 respondents across 25 Indian cities [between 10 December 2021 to 14 January 2022], the survey was carried out during the recent wave of the Covid-19 pandemic.

    Among the metros, Hyderabad emerged as the least financially protected city in India with a protection quotient of 48, far lower than the overall metro average of 53. Furthermore, the city’s life insurance knowledge index and ownership stood at 66 and 82% respectively, tailing Delhi, Bengaluru, Mumbai, Kolkata and Chennai. However, a positive is evident in the city’s security levels which stood at 58%, outscoring other cities.

    V. Viswanand, Deputy Managing Director, Max Life said: “India Protection Quotient 4.0 highlights significant milestones as well as challenges for the insurance industry. While the sense of financial security and knowledge increased amongst urban Indians during the pandemic, life insurance adoption continues to remain critical for improved financial protection. The study shows that Hyderabad has a strong sense of financial security, however it has a long road ahead in terms of proactive financial planning, life insurance awareness and ownership. There is a need to bridge this gap for Hyderabad, encouraging the city to realize the vital role of life insurance in financially protecting our loved ones.”

    Notes to the editor:

    The following findings reveal insights that highlight Hyderabad’s shift across financial priorities and anxieties studied by India Protection Quotient 4.0:

    •              Sustaining family requirements drive majority of anxieties in Hyderabad

    As per the survey, Hyderabad is the most financially anxious city followed by Kolkata, Mumbai and Chennai. 72% respondents reported financing children’s education as a key stressor followed by sustaining lifestyle and expenses with current earnings (68%), financing children’s wedding (66%) and worries over mental health and well-being (65%)

    •              Witnesses lowest term insurance ownership

    Despite Hyderabad’s term insurance awareness of 79%, the city has witnessed the lowest term insurance adoption. Even amidst the pandemic, only 41% or 2 in 5 persons in Hyderabad owned term insurance. This was surpassed by other metros including Bengaluru with 59% term ownership, Mumbai with 50%, Chennai with 48% and Delhi registering 47% ownership.

    •              City least proactive and conscious about financial planning and wellbeing

    Only 70% respondents were proactive about financial planning in Hyderabad as compared to 83% in Mumbai, 79% in Bengaluru, Kolkata and 77% in Delhi. 72% respondents were conscious of their personal wellbeing and maintaining a routine fitness regime.

    Disclaimer:

    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 3.0 Express vs IPQ 4.0 (digital versions) data comparison is amongst 25 markets only [6 metros, 9 Tier 1 and 10 Tier 2]
    • The minimum sample to conclude any findings of the study is 270 with an error margin of +-5.964%

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