Tripathy works on comprehensively protected India
As per the latest IPQ 7.0, urban India’s Protection Quotient has climbed to 48, up from 35 in 2019, (the initiating year of IPQ 1.0) marking continued progress in the country’s financial preparedness, says Axis Max Life Insurance Ltd in its latest report released on 10 May 2025.
“Life insurance ownership has reached an all-time high, with 78% of urban Indians owning one or more products, while the Knowledge Index has improved to 63 up by two points, indicating increased awareness and understanding of life insurance,” said Axis Max Life which is launching the India Protection Quotient 7.0 under the unified narrative of ‘Bharosa Talks’ that will spotlight India’s evolving financial and protection mindset https://www.bseindia.com/.
In a post-pandemic recovery milestone, urban India’s financial security has hit 68%, surpassing the pre-pandemic peak of 66% (IPQ 1.0), and rebounding strongly from a pandemic low of 57%. For the first time in seven editions, ‘Cover’ has overtaken ‘Premium’ as the key consideration in term life insurance purchase, with 3 in 4 urban respondents prioritizing coverage over cost https://www.nseindia.com/.
Axis Max Life Insurance CEO and Managing Director Prashant Tripathy said on 10 May, “India Protection Quotient, as part of ‘Bharosa Talks’ has evolved into a powerful barometer of India’s financial resilience, acting as a catalyst for driving India’s protection narrative forward https://sbi.com.in/.
“This year’s record Protection Quotient, alongside all-time high life insurance ownership, reflects a decisive shift in consumer priorities — from cost sensitivity to genuine protection needs. Yet, the widening gender gap in financial security calls for deeper, more inclusive interventions. At Axis Max Life, we remain committed to strengthening this momentum, driving awareness, and building a more comprehensively protected India.”
In IPQ 7.0, Metros have seen a 3-point jump in the Protection Index on the back of increased ownership of life insurance (from 83% in IPQ 6.0 to 86% in IPQ 7.0) and improved sense of financial security (from 69% in IPQ 6.0 to 71% in IPQ 7.0). Tier-1 cities have also seen a significant improvement across parameters like Knowledge Index (from 58 in IPQ 6.0 to 62 in IPQ 7.0), Life Insurance Ownership (up from 73% in IPQ 6.0 to 77% in IPQ 7.0), and Security Levels (from 63% in IPQ 6.0 to 67% in IPQ 7.0).
Despite a notable rise in awareness and ownership of term insurance, from 70% to 74% and 31% to 34% respectively, high premiums continue to deter many from adoption. For nearly 1 in 4 individuals, term insurance affordability remains a significant hurdle, with an increase in those citing lack of funds as a barrier (21% to 25%). While saving and ULIP products also witnessed a modest uptick in awareness and ownership, the data suggests that improving accessibility and addressing financial constraints is key to driving wider term plan adoption https://www.ibef.org/.
Online platforms are steadily emerging as a preferred mode for term insurance purchase, with adoption rising from 18% in IPQ 6.0 to 22% in IPQ 7.0. The digital channel’s appeal lies in its cost-effectiveness, access to comprehensive policy information, and quicker, more convenient transactions. With ease of comparison and seamless access to support, online purchase is fast becoming a go-to option for today’s digitally savvy insurance buyers.
Gen-Z has emerged as a standout cohort, boasting a Protection Quotient of 41, with two-thirds owning life insurance products. They surpass non-millennials in purposeful planning, showing strong intent toward mid-term goals such as buying a house, a car, or planning vacations. Their disciplined saving behavior and willingness to invest reflect a growing sense of financial independence and a modern approach to balancing lifestyle and security.
Salaried individuals continue to lead with a Protection Quotient of 52, driven by gains across knowledge, ownership, and security. Term insurance ownership for the Self-Employed rose by 2 points, bolstered by improved financial confidence and adoption of market-linked products. However, savings capabilities dipped, with a 3-point drop in the ability to save from household budgets, highlighting ongoing financial stress in this segment.
Instituted in 2019, India Protection Quotient is an annual Survey by Axis Max Life Insurance in association with Kantar aimed to understand the pulse of the Indian consumers in the financial protection space. Fiinews.com
