Financially insecure Indians are lapping up insurance products

Photo of Financially insecure Indians are lapping up insurance products
Facebook
VKontakte
share_fav

Urban Indians are becoming less confident about their financial security.

Up to 58% of them fret over financial independence post-retirement, which is a 4% increase from last year. An equal share of urban Indians worry about meeting their daily medical expenses and sustaining their current lifestyle once they stop working.

The findings are part of a survey published by Delhi-based Max Life Insurance in association with London-based consultancy Kantar. The firms surveyed 7,014 respondents in 25 cities, including six metros, nine tier-1 cities, and 10 tier-2 cities, between December 2019 and January 2020.

A significant share of urban Indians also say their families will have no financial support in the event of the breadwinner’s death. In such a scenario, around 57% believe the family savings will exhaust within a year.

The financial insecurity is leading to the increasing popularity of term insurance plans in urban India. Such pure insurance products provide an assured sum to the nominees in the event of the insured person’s death but have no survival benefits.

Term insurance penetration in the country stands at 28%, a 7 percentage point increase from last year, according to the survey. This, however, pales in comparison to the ownership of overall life insurance products, which stands at 70%, a 5 percentage point increase from last year.

Millennials and insurance

While millennials are just as aware of life insurance products as older people, they have lower ownership.

Millennials in tier-2 cities, in particular, lag in awareness and ownership.

Offline over online

Increasing usage of internet in the country notwithstanding, Indians still prefer to buy their insurance from agents rather than online, said the survey.

“People across the country give more importance to agents and brand goodwill while selecting a life insurance provider; reiterating the importance of owning a robust distribution network built on customer centricity and great brand recall,” said Prashant Tripathy, managing director & CEO of Max Life Insurance.

view Quartz
#survey
#online
#communication
#anxious
#banks
#expenses
#analytics
#millennial
#future of finance
#financial planning
#life insurance
#financial security
#awareness
#ownership
#health apps
#digital india
#investment
#agents
#south asia
#endowment
#health insurance
#fitness
#urban india
#metros
#kantar
#investing
#gender
#health
#affluent
#money
#technology
#young india
#tier 2 cities
#critical illness
#metro cities
#customer centricity
#distribution network
#max life insurance
#tier-1 cities
#breadwinner
#medical expenses
#digital channels
#brand recall
#accidental death benefit rider
#brand goodwill
#consulting company
#critical illness rider
#critical illness riders
#current earnings
#data resources
#digital millennial india
#discounted premiums
#endowment polices
#endowment products
#financial protection
#financially insecure
#human sellers
#insurance products
#kantar insights
#life insurance provider
#life stage benefit
#market linked insurance
#max life
#max life india
#mitsui sumitomo insurance
#non-millennials
#online research
#policy agents
#policy reassurance
#prashant tripathy
#premium option
#premium payment
#soumya mohanty
#sustaining lifestyle
#term insurance
#term plan
#traditional endowment plans
#treatment costs
#ulip