Rising medical expenses top anxiety of urban India: Survey

Rising medical expenses and financing family’s aspirations have emerged as the top anxieties of the urban India in the sixth edition of the India Protection Survey – an annual exercise by Max Life Insurance in association with Kantar. The survey aims at understanding the pulse of Indian consumers in the financial protection space.

As per IPQ 6.0, urban India has demonstrated a remarkable progress in financial readiness, with 3 out of 4 urban Indians now owning life insurance products. The Protection Index is at an all-time high of 45 in IPQ 6.0, up from 43 in IPQ 5.0, reflecting a positive trajectory in the nation. As per IPQ 6.0, urban India has demonstrated a remarkable progress in financial readiness, with 3 out of 4 urban Indians now owning life insurance products on evolving protection awareness and adoption.

The survey has revealed an increase in the knowledge index, and life insurance ownership index. “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,” said a release from Max Life Insurance Company.

Interestingly the survey points out that the rising medical expenses are top anxieties of the urban India. In IPQ 6.0 the increasing medical expenses jumped to the top position as the number one anxiety among the community of insurance buyers compared with the ninth position it held in the previous year’s survey.

The second anxiety according to this year’s survey among the urban populace is prioritising the desires and aspirations of the family, while the increasing prices of goods and services retained the third position on the anxiety list this year. It may be noted that last year increasing prices of goods and services was the top anxiety of the urban India.

The survey points out that the tier II cities are lagging behind in the adoption of the insurance products. “Corresponding with last year's observations, metro cities are approaching the 50-point milestone this year, boasting a Protection Quotient of 49 points. In contrast, life insurance ownership and adoption in Tier II cities remain stagnant, with IPQ lagging at 36 points," the release said.

"In line with previous findings, South India retained its position as the most financially protected zone with a Protection Quotient of 49 points. This was followed by West India, which showcased 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," it added.

Max Life Insurance Company Ltd conducted the survey in partnership with data and analytics company KANTAR, tapping 4,700 respondents across 25 Indian cities.