Women in non-metros have lower intent to buy life insurance

Penetration of life insurance in urban India increased 3% points from 63% in 2010 to 66% in 2013, according to a study by Nielsen.

September 17, 2013 4:25 IST | India Infoline News Service
The intention to buy life insurance has declined from 20% in 2010 to 17% in 2013, according to a study by global information and insights company Nielsen.

The study, LIFE 2013, said that penetration of life insurance in urban India increased 3% points from 63% in 2010 to 66% in 2013. The gain is due to a significant increase in penetration in the metros from 59% to 64%.

However, non-metros with limited diversification in portfolios continue to lead with a penetration of 68%. Traditional policies still comprise a large portion (86%), while unit-linked policies (Ulips) are down to 14% in 2013.

“Women in non-metros have a lower intent of purchase of life insurance, as ownership is already high; the corresponding figure in the metros stands at 19%,” the study said.

“The consumption and savings story in India is at an interesting stage. There is evidence of higher absolute savings, although share of savings is lower. Lower income groups in Urban India are impacted much more by the economic slowdown and inflation and this may have a significant impact on insurers targeting consumers paying lower premiums,” said Subhash Chandra, Executive Director, Nielsen India.

LIFE 2013 primarily covers individuals’ behaviour and attitudes towards life insurance in India. This is the fifth round of the study. The survey covers 17 cities in urban Indian with a sample size of 11,584 working adults belonging to SEC A, B & C.

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