Pune’s lndia Protection Quotient of 27 abysmal in comparison to national average of 35, only an alarming 1 in 10 own term insurance, reveals Max Life Survey
Pune, 08th April 2019: Max Life Insurance, one of India’s leading private life insurers, today unveiled that only 58% of Pune’s population owns life insurance, making it one of the least insured cities in the country. As per the ‘India Protection Quotient’ survey conducted by Max Life and Kantar IMRB, Pune stands at a Protection Quotient of 27 out of 100, lesser 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 and triggers when purchasing policies.
V Viswanand, Deputy Managing Director, Max Life Insurance said: “By virtue of Pune being one of the IT cities of the country, the overall level of the city’s financial protection quotient was found to be much lower in comparison to the national average. The city lags marginally in the knowledge index of the life insurance category, with term insurance awareness and uptake being one of the lowest on our India Protection Quotient survey. This evokes a major concern as term insurance is the cheapest and most fundamental form of financial protection. There is definitely scope for the citizens to re-align their approach to life insurance by understanding the true value of protection one’s family from the uncertainties of life. We’re certain the survey’s compelling findings will help bring about change in the underlying attitudes and overall behavior of people around life insurance.”
Pune among the cities to rank lowest on life insurance and knowledge index
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. Pune’s protection quotient of 27, ranks the city lower on the scale in comparison to other leading cities such as Ahmedabad, Bhubaneshwar, Chennai, Delhi, Jaipur, Lucknow, Mumbai, Patna, Vishakhapatnam, etc.
Additionally, with a knowledge index score of 30, citizens of Pune were found to be less aware of insurance as a category than the country as a whole (knowledge index score of 39). The knowledge index score of Pune was even lower than Tier 1 cities of Lucknow, Patna and Bhubaneshwar.
Poor term insurance ownership of 11% of the total respondents in the city, more than 60% of the city’s population unaware of its benefits
Against the national average of 65% life insurance ownership, the survey revealed that West 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%).
Only 58% of Pune’s population owns life insurance, making it one of the least insured cities in the country. Term insurance ownership only makes a paltry 11% of survey respondents in the city making the city is grossly underprepared to face the financial instability caused by eventualities of life. Term insurance awareness also stands at a lower 36% in comparison to urban India’s level of awareness of 47%, indicating existence of barriers in the way of uptake.
City not financially prepared to deal with critical illnesses
With relatively lower life insurance awareness and ownership, 62% of the West region of India feels that savings will last longer than one year in the case of critical illness of the bread winner.
24% of the city’s population believes there will be no one to support them financially if they were to be diagnosed with a critical illness. 84% are not even aware of the treatment costs of diseases. Only 17% realized that critical illness can prey upon the family, whereas 30% have not even thought about it.
58% of Pune feel that their savings would last less than a year if critical illness or death was to befall. About 22% of the city’s population 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.
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.
