Page 17 - Insurance Times February 2021

insurance coverage with benefits of people understand the importance of reducing spend on both basic needs
savings, offering a suitable product for being financially protected. Both of and luxury. In the backdrop of Covid-
risk-averse individuals who are keen to these factors have resulted in higher 19, however, Indians continue to feel
get regular income and are eyeing enquires for guaranteed life insurance financially insecure, he added.
assured financial returns over the products.''
medium term. Financial anxieties related to Covid-19,
ICICI Prudential Life Insurance had, in and the ability of current earnings to
In view of a higher life expectancy, December 2020, unveiled 'ICICI Pru cover expenses, have emerged as top
rising inflation, and rising healthcare Guaranteed Pension Plan' that offers concerns for urban Indians, said
costs, the combination of protection guaranteed life-long income to lead a Tripathy.
and savings with guaranteed returns financially independent retired life.
and guaranteed additions in life Similarly, HDFC Life Sanchay Plus also As per the survey, urban India
insurance plans, make them attractive works for those who are risk-averse witnessed a positive movement of 4
for those who seek assured returns on and want assured returns for their points on the Protection Quotient scale
their savings. later years. from 35 (as per IPQ 2.0) to 39 (as per
IPQ 3.0).
Recently, Bharti AXA Life launched ' Sandeep Nanda, Chief Investment
Guaranteed Income Pro', a non-linked, Officer, Bharti AXA Life Insurance, said: Conducted in the most uncertain and
non-participating savings insurance "Insurance companies need to carefully challenging times, Max Life IPQ 3.0
plan, that offers life insurance along monitor the duration of their liability assesses the notable shifts in the
with guaranteed returns and maturity cash flows and then decide their asset attitude of urban Indians from the
benefits. allocation and duration to reduce beginning of the lockdown in March
2020, through the different phases of
Parag Raja, Managing Director & CEO, interest rate risk. If interest rates move Covid-19, until the announcement of
Bharti AXA Life Insurance, said: adversely as compared to assumptions, viable vaccine in December.
"Guaranteed income is ideal for risk then products may need to be repriced
averse individuals who aim to generate or withdrawn. Insurance companies Around 4,357 respondents were
a substitute source of regular income sell a variety of products with different surveyed via face-to-face interviews
and achieve assured financial returns liability cash flow durations. Hence, the with adequate safety measures across
for tomorrow. We designed Bharti AXA overall interest rate risk gets reduced 25 cities comprising 6 metros, 9 Tier I
Life Guaranteed Income Pro as an in- as some products have relatively and 10 Tier II cities, making this one
novative solution that provides life in- shorter duration." of the most comprehensive financial
surance coverage and benefits of a studies carried out during Covid-19
savings product. Covid helped in Insurance situation.
The hallmark of our offering is the The survey revealed that the degree to
sound financial returns amid uncertain awareness which Indians are aware about life
markets. It not only offers flexible The ongoing pandemic situation has insurance products or the Knowledge
short, medium- and long-term income accelerated the knowledge and Index moved up by 9 points to 55, and
options, but also helps people meet ownership of insurance in the country, Life Insurance Ownership levels
different financial needs at various and this is reflected in the findings of increased by 500 bps from IPQ 2.0 to
milestones of life." the latest edition of 'India Protection 71 per cent.

Launching Future Generali Assured Quotient' (IPQ 3.0), said Prashant The degree to which Indians feel
Wealth Plan, a guaranteed Tripathy, Managing Director and CEO, financially secure and prepared, or the
endowment plan in October last year, Max Life Insurance. Security Level, dipped by 300 bps to 57
its Chief Customer and Marketing Releasing the findings of the third per cent amid uncertain times.
Officer, Rakesh Wadhwa, had said: edition of its survey, conducted in Notably, the survey shows a significant
"Given the volatility in interest rates, association with Kantar, Tripathy noted growth of Knowledge Index across all
many customers look for long-term that Indian households have, in the cities, age and gender, highlighting
solution with guaranteed returns. Also, current times, increased focus on responsible outlook of urban India amid
the ongoing pandemic has made savings and investments while uncertain times.

The Insurance Times, February 2021