Survey says Bengaluru least insured among metro cities

Bengaluru: As per the survey Max Life India Protection Quotient 3.0, 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.

The findings by Max Life Insurance Company Ltd. conducted in partnership with KANTAR, assessed 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 six metros, nine Tier I and 10 Tier II cities, making this one of the most comprehensive financial studies carried out during the COVID-19 times.

The survey has 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 national capital Delhi, displayed an ownership level of 81%.

In the backdrop of coronavirus, Bengaluru has grown 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 the highest term insurance awareness uplift of 23% in comparison to last year. On the flipside, however, its term insurance ownership of 32% was higher than only that of Mumbai and Kolkata, both of which displayed term insurance ownership of 22%.

On the back of health and financial challenges, the survey has revealed that anxiety levels of Bengaluru stood at 64% during coronavirus. Even while lower in comparison to hyper anxious metro cities like Kolkata (78%) and Delhi (71%), Bengaluru's anxiety levels were higher in comparison to certain other metros - Hyderabad (49%) and Chennai (62%).

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 into 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."