Key findings
The overall financial protection score stands at 37 points, against the digitally-savvy urban Indians’ score of 54 pointsThe LGBTQIA+ community demonstrates near-universal awareness at 99%; however, life insurance ownership is at 68%, compared to 80% ownership in the digitally-savvy urban Indian cohort
NEW DELHI, May 31, 2024 /PRNewswire/ — The flagship study of Max Life Insurance Company Limited (Max Life), the India Protection Quotient Survey (IPQ), in partnership with KANTAR, has revealed insights into the financial preparedness of the LGBTQIA+ community in India from the perspective of life insurance. This pioneering initiative, conducted in partnership with Pride Circle, one of India’s premier Diversity and Inclusion Advisory firms, represents a significant step forward in understanding and addressing the specific financial needs of the diverse community.
Under the vision of ‘One India-Protection for All’, the PAN-India survey includes the LGBTQIA+ community for the first time to understand their financial preparedness. With a population estimated to be around 135 million people, or around 10% of India’s 1.4 billion population, the LGBTQIA+ community represents a significant segment whose financial preferences and challenges cannot be overlooked.1, 2
With a Protection Quotient of 37 points, the LGBTQIA+ community exhibited a 17-point difference in financial preparedness, as compared to the digitally-savvy urban Indian at 54 points. In contrast, the LGBTQIA+ community has displayed a commendable level of awareness, understanding, and proactive engagement in financial planning, with 99% individuals aware of life insurance products. Despite high awareness, ownership of life insurance in the community stands at 68%, as opposed to 80% ownership in the digital cohort.
Prashant Tripathy, CEO and Managing Director, Max Life said, “As India advances towards a more inclusive and sustainable future, the need to create comprehensive financial solutions for all is more critical than ever. At the heart of this mission is our flagship India Protection Quotient survey, which not only measures awareness levels of life insurance but also strives to achieve a deeper, more unbiased understanding of financial protection. This year, with the inclusion of the LGBTQIA+ community, the India Protection Quotient reaffirms our commitment to diversity, inclusion, and equitable access to financial security for all Indians. We are dedicated to ensuring that everyone has the protection they deserve, driving forward a vision where every life is valued and safeguarded.”
Ramkrishna Sinha, Co-Founder, Pride Circle said, “The inclusion of the LGBTQIA+ community in Max Life’s India Protection Quotient study is an important step to uncovering the gaps and challenges faced. We are optimistic that this will lead to enhanced attention, addressing the needs of this community, and a deeper understanding of the importance of life insurance. We at Pride Circle remain committed to working for the enablement of the LGBTQIA+ community, and this is a step toward financial wellbeing.”
Awareness, Ownership and Barriers of the Indian LGBTQIA+ Community
The LGBTQIA+ community demonstrates exceptional levels of awareness regarding life insurance products, with 82% awareness of Term Life Insurance, and 88% awareness of Savings Life Insurance products. These figures surpass the slightly lower awareness levels (81% and 79% for Term Life Insurance and Savings Life Insurance products, respectively) observed in the digital segment.
However, high premiums (35%) and a higher inclination towards health insurance (48%) remain the top barriers for the community to adopt life insurance offerings. Additionally, more than 80% of the respondents have made parents nominees in their life insurance policies, in stark contrast to overall India, where 15%-25% of respondents have parents as nominees.
Overall, the cohort remains acutely aware of Term products but lags in ownership compared to the digital audience. Further, ownership and awareness of ULIPs and market-linked products remain lower within the community, presenting an opportunity for focused education and outreach efforts for the industry.
Concerns and attitude towards financial prudence
Concerns voiced by LGBTQIA+ respondents underscore their high awareness of financial vulnerabilities, particularly regarding rising medical expenses, mental health, and inflationary pressures. Despite these challenges, the community remains steadfast in their commitment to financial discipline, with 9 in 10 respondents prioritizing savings over spending, embodying a forward-thinking approach to securing their financial future. A significant portion of the community allocates a substantial portion of their income towards savings – 30% as compared to 36% by the digital respondents, albeit with higher proportions dedicated to luxury (19% vs. 14%) and basic expenses (33% vs. 28%) as compared to the digital cohort.
Preference of Life Insurance Players
The LGBTQIA+ community has a strong preference for private companies in the life insurance sector, with close to 80% expressing an inclination, while only 40% of the IPQ digital respondents favour private companies. The respondents also revealed that they are highly influenced by LGBTQIA+ support groups and forums, believing and following influencers from the community while making financial decisions.
Max Life continues to remain keenly attuned to the evolving demands of its consumers across all cohorts and social groups. Through initiatives like the India Protection Quotient survey, the company remains committed to derive valuable insights into the financial preparedness of the nation and develop tailored financial security solutions that meet the needs of modern consumers.
1 https://orfonline.org/expert-speak/indias-pink-economy (Kinsey scale)
2 https://kinseyinstitute.org/research/publications/kinsey-scale.php
About India Protection Quotient
Instituted in 2019, India Protection Quotient is an annual property by Max Life Insurance in association with KANTAR aimed at understanding the pulse of Indian consumers in the financial protection space. Launched with the underlying objective of increasing penetration of term insurance as the most fundamental and economical form of life insurance, the survey aims to reveal the state of urban Indians with regards to current financial security levels, changing savings and investment patterns, key anxieties, and triggers of financial protection in a contemporary world. The India Protection Quotient is a proprietary tool developed by Max Life in partnership with KANTAR to gauge the degree to which Indians feel protected from future uncertainties on a scale of 0 to 100. It is based on attitudes, mental preparedness around future uncertainties, awareness, and ownership of life insurance product categories (term, endowment, and ULIP).
Disclaimer:
The study is conducted in partnership with KANTAR in the top 25 Urban metros, Tier 1 and Tier 2 cities; hence, its findings are representative of metro, Tier 1 and Tier 2 cities in Urban India only.
Metro – Delhi, Kolkata, Chennai, Bangalore, Hyderabad, MumbaiTier 1 – Ludhiana, Jaipur, Lucknow, Patna, Bhubaneshwar, Vizag, Ahmedabad, Bhopal, PuneTier 2 – Dehradun, Moradabad, Guwahati, Bokaro, Kolhapur, Jamnagar, Raipur, Ujjain, Hubli-Dharwad, TiruchirappalliIPQ 6.0 vs IPQ 5.0 data comparison is amongst 25 markets only (6 metros, 9 Tier 1 and 10 Tier 2)The minimum sample to conclude any findings of the study is 270 with an error margin of +-5.964%
*Findings represented here are as per the IPQ 6.0 survey and Max Life doesn’t assume responsibility or liability for any contradictions.
**The LGBTQIA+ edition of IPQ 6.0 was administered digitally and hence the comparison with online results of the mainstream IPQ 6.0 Survey.
About Max Life Insurance
Max Life is a Joint Venture between Max Financial Services Limited (“MFSL”) and Axis Bank Limited. Max Life offers comprehensive protection and long-term savings life insurance solutions through its multi-channel distribution, including agency and third-party distribution partners. Max Life has built its operations over two decades through a need-based sales process, a customer-centric approach to engagement and service delivery and trained human capital. As per the annual audited financials for FY2022-23, Max Life has achieved a gross written premium of INR 25,342 Cr.
For more information, please visit the Company’s website at www.maxlifeinsurance.com.
About KANTAR
KANTAR is the world’s leading marketing data and analytics business and an indispensable brand partner to the world’s top companies. We combine the most meaningful attitudinal and behavioral data with deep expertise and advanced analytics to uncover how people think and act. We help clients understand what has happened and why and how to shape the marketing strategies that shape their future.
For more information, visit www.kantar.com.
About Pride Circle
India’s Premier Diversity & Inclusion Advisory Consultancy with a mission of Social Equity by affirmative action for LGBTQIA+ community in India. They have partnered with over 450 companies across India to provide Executive Leadership Development, comprehensive Diversity & Inclusion Training, Sensitization, Consultation, Industry Roundtables, Research & Publications, job placements and professional networking opportunities that build safe, inclusive, and welcoming work environments.
With their experience and growing roster of national and international partner companies, government & non-profit organizations, Pride Circle is leading the LGBT+ inclusion revolution in India. They conduct Audits & Assessments, Training & Sensitization, Industry Roundtables, Job Placement, Research & Publications.
Logo: https://mma.prnewswire.com/media/1992948/4492032/Max_Life_Insurance_Logo.jpg
View original content:https://www.prnewswire.com/in/news-releases/9-in-10-from-the-indian-lgbtqia-community-prioritize-savings-over-spending-to-secure-their-financial-future-max-lifes-ipq-6-0–302160580.html
Technology5 days ago
Technology5 days ago
Technology5 days ago
Technology5 days ago
Technology3 days ago
Technology5 days ago