Bengaluru: 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”)’ conducted in partnership with KANTAR. As per the survey, urban Bengaluru witnessed a positive movement of 6 points on the Protection Quotient scale from 34 (as per previous survey IPQ 2.0) to 40 points (as per IPQ 3.0). However, it was found that in the backdrop of Covid-19, the city still continues to feel financially insecure.
Conducted in the most uncertain and challenging times, Max Life IPQ 3.0 assesses the notable shifts in Bengaluru residents’ 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 Bengaluru is aware about life insurance products or the Knowledge Index moved up by a whopping 19 points to 53 during the pandemic, however life insurance ownership levels remained stagnant at 72% over the last year, making it the least insured metro city in India. Hyderabad came next in line with 80% life insurance ownership, whereas the capital city Delhi, displayed an ownership level of 81%.
In the backdrop of Covid-19, Bengaluru grew more anxious about financial security and preparedness in the last one year. Financial anxieties related to Covid-19 infection, cost of treatment and ability to secure family’s financial wellbeing in the absence of breadwinner emerged as top concerns for the citizens of Mumbai.
Furthermore, the survey witnessed a notable increase in urban Bengaluru’s levels of term insurance awareness in the wake of the pandemic. The city demonstrated highest term insurance awareness uplift of 23% in comparison to last year, on the flipside however, its term insurance ownership of 32% was higher only to Mumbai and Kolkata, both of which displayed term insurance ownership of 22%.
V. Viswanand, Deputy Managing Director, Max Life Insurance 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 Bengaluru, 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 Bengaluru 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 Bengaluru’s shift across financial priorities and anxieties, compared from pre-Covid times:
- Urban Bengaluru’s security levels relatively steady during COVID-19, city feels most insecure about financial stability in absence of breadwinner, medical expenses
In the backdrop of Covid-19, the degree to which Bengaluru feels financially secure and prepared remained steady. Amidst uncertain times, Bengaluru’s security levels even displayed marginal improvement from the earlier 72% (IPQ 2.0) to 73% now, at par with Delhi’s security levels at 73% but lower in comparison to Hyderabad at 80%.
The survey further revealed that amidst total or partial job losses, reduced income levels and escalated medical expenses only 74% Bengaluru respondents said they’d feel financially secure in the absence of breadwinner whereas only 72% felt financially secure about medical expenses involving high expenditure. Security of job/business was felt by only 79% Bengaluru respondents and only 77% respondents felt secure about fulfilling family’s basic/luxury needs post retirement.
- City’s anxiety levels stand at 64%; fear of infection, sustaining lifestyle expenses, amongst Bengaluru’s topmost anxieties
On the back of health and financial challenges, the survey revealed that anxiety levels of Bengaluru stood at 64% during Covid-19. Even while lower in comparison to hyper anxious metro cities Kolkata (78%) and Delhi (71%), Bengaluru’s anxiety levels were higher in comparison to certain other metros – Hyderabad (49%) and Chennai (62%).
‘Someone in the family might get infected from Covid-19’ was the topmost anxiety for 77% in urban Bengaluru. Sustaining lifestyle and expenses with current earnings, cost of Covid-19 treatment, followed by financial security of family in the absence of breadwinner were the three other topmost anxieties.
- The pandemic compelled Bengaluru to be more proactive about health, fitness, financial planning
With a sense of increasing worries and reducing security, IPQ 3.0 revealed that urban Bangaloreans are becoming more proactive about financial planning and overall health and fitness. In the backdrop of Covid-19, 70% Bengaluru respondents said that they’re proactive about financial planning and 63% said that they believe in saving more than spending. With pandemic having medical implications, city’s residents are also prioritizing health and fitness. A notable 80% of Bangaloreans said that they actively look for products that will improve immunity and 81% pay attention to health and fitness regime.
- City’s sees highest uplift in term insurance awareness; but lags in term insurance ownership
Among all metros, Bengaluru’s term insurance awareness registered highest uplift of 23% compared to IPQ 2.0. Even while the city’s term awareness level at 64% increased significantly from the earlier 41%, it was higher only in comparison to Kolkata (41%) and Hyderabad (54%), but lower in comparison to other metros Mumbai (74%) and Delhi (73%).
On the other hand, the city’s term insurance ownership increased from earlier 24% to 32% now but remained relatively weak in comparison to term ownership levels of Delhi at 44% and Chennai at 42%. The same indicates that while urban Bengaluru is increasingly waking up to the challenges of pandemic and realizing need for greater financial protection, term conversion is yet to see an uptake.