Life Insurance Awareness & Adoption Rise in Urban India - Report

New Delhi, Feb 13 (PTI) Urban India witnessed remarkable progress in financial readiness, with 3 out of 4 urban Indians now owning life insurance products, according to a report.

The Protection Index is at an all-time high of 45 in India Protection Quotient (IPQ) 6.0, up from 43 in IPQ 5.0, reflecting a positive trajectory in the nation's evolving protection awareness and adoption.

Max Life Insurance released IPQ 6.0 on Tuesday -- tapping 4,700 respondents across 25 Indian cities -- which also pointed out that life insurance sales through digital mode have increased compared to the last survey.

At the same time, life insurance ownership levels increased to 75 compared to 73 (IPQ 5.0).

Over a five-year period, the India Protection Quotient has witnessed an impressive 10-point increase, from 35 in IPQ 1.0 to 45 in IPQ 6.0, that reiterates Urban India's constant journey towards building financial resilience, the report said.

In line with previous findings, South India retained its position as the most financially protected zone with a Protection Quotient of 49 points, the report said, adding this was followed by West India, showcasing a marked improvement in financial preparedness from 42 points in IPQ 5.0 to 46 points in IPQ 6.0.

North and East zones lagged in financial protection at 41 and 40 points in this edition, respectively.

Max Life MD and CEO Prashant Tripathy said over the past five editions, the IPQ has become a true barometer for measuring urban India's financial protection levels.

"By including incremental cohorts year-on-year, IPQ has become stronger, bigger, and more inclusive. Today, we are witnessing a remarkable shift in the financial consciousness of this diverse group, with 3 out of 4 urban Indians now owning life insurance," he said.