India’s Protection Boom: Life Insurance Ownership Hits Record 78%

Image Source: Media Brief

Urban Indian ownership of life insurance has hit a record 78%, an all-time high, as per the recent Axis Max Life India Protection Quotient (IPQ) 7.0 survey, which is a testament to a revolutionary change in financial literacy and increasing importance given to security over the long term by Indian families.

Key Highlights

Recorded High in Ownership: Life insurance holding in Urban India has reached an all-time high of 78%, reflecting a conclusive shift towards financial protection and readiness.
Protection Quotient Peaks: India Protection Quotient has risen to 48, from 35 in 2019, reflecting enhanced resilience and sensitivity towards financial security.
Changing Priorities: For the first time ever in the history of this survey, "coverage" has surpassed "premium" as the most important consideration for buying term insurance. Three in four today value proper protection over cost.
Financial Security Bounces Back: Urban India's confidence about financial security has bounced back to 68%, which is above pre-pandemic levels and a pandemic low of 57%.
Knowledge Index Improves: The Awareness Index, which tracks awareness of financial protection, has risen to 63, two points higher than last year.

Regional & Demographic Insights:

South India is the leader in insurance penetration, with metro and Tier-2 cities recording substantial gains. East India, however, continues to lag behind in ownership despite growing awareness. Working women's protection quotient is still at 48, while working men's has risen to 50.

Digital Shift:

Internet shopping of life insurance is increasing, with consumers increasingly using digital mediums because of ease and convenience in comparison.

The Axis Max Life IPQ 7.0 survey highlights a definitive change in Indian consumer attitudes, with life insurance now considered an integral part of financial planning and not merely a tax-planning instrument.

Source: CNBC TV18, Businessworld India, CafeMutual, Angel One