- Covid sentiment study for Tata AIA conducted by Nielson in 9 major Indian cities
- Life Insurance emerged most preferred financial asset class during the Pandemic
- Customers associate life and health insurance solutions as must-have investments and a large percentage would consider buying them in the next six months [from Dec 2020]
- Term solutions emerge as the fastest-growing category and come only after Endowment solutions in terms of customer preference
49% of respondents suggested that they intend to buy Life Insurance in the next six months to ensure the financial security, followed by health insurance at 40 %, Mutual Fund SIPs at 37 %, Bank/Company FDs at 33 %, Equity shares at 30 % and Gold/Digital Gold at 25% of those surveyed.
Regarding types of life insurance policies bought by the customers, with strong demand during the COVID-19 Pandemic, Term Insurance has seen significant improvement in purchase intent. 47% of respondents feel that their views towards Term protection solutions have changed positively. In comparison, 44% of respondents feel that their views towards Endowment solutions have changed positively, and 41% of respondents feel that their views towards ULIPs have changed positively. 23% of respondents plan to invest in pure protection insurance, 28% in Endowment / Money Back policies, and 20% in ULIPs in the next six months
The survey also reveals that 84% of respondents are concerned about their health and the family members’ health due to COVID-19 pandemic. As an influence of COVID-19 pandemic, 71% of the people intend to invest in Health Insurance in the next six months. 67% feel their opinion towards Health insurance/ Mediclaims has changed positively due to COVID-19 pandemic.
During the COVID-19 Pandemic, 51% of respondents invested in Life insurance, and 48% invested in health-related solutions. As for other asset classes, 33% of people have invested in Bank/ company fixed deposits, 30% have invested in Mutual funds, 24% have invested in stocks/ shares, and 17% have invested in gold/ digital gold. During the COVID-19 pandemic, 30% of people invested in Life insurance for the first time, and 26% invested in health-related solutions for the first time.
62% of respondents informed that they are still very concerned about themselves and their families due to COVID-19 pandemic. Of the respondents concerned about self/ family, 50% are worried about mental health due to increased workload due to COVID-19 Pandemic. Among the female respondents, 55% of women said they are concerned about the mental health due to the increased workload during the COVID-19 Pandemic.
Commenting on the findings of the survey, Venky Iyer, CDO and Head marketing, Tata AIA Life Insurance said, “Life Insurance has clearly emerged as the preferred financial asset as per our Covid sentiment study. There is a distinct shift towards considering Life Insurance as the primary source of future financial protection, followed by Health and wellness solutions. The survey findings have helped capture and unravel the transition in customer usage and attitude towards Life Insurance.”
“The survey reveals that, with changing money needs and priorities, consumer’s monthly allocation towards Insurance, Savings, and investment, has increased. With less discretionary spends and more focus towards essentials spending, consumers are motivated to save, and invest more in Life Insurance than they were Pre-Covid,” Venky added.
Tata AIA Life commissioned the survey to leading market research agency Nielsen to get a comprehensive understanding of consumers’ usage and attitude pre and post COVID-19 Pandemic towards the financial instruments and type of life insurance policies. The study was administered to a total sample size of 1369 respondents across 9 centres. Salaried, Business and Self-Employed Male and Female in the age group 25-55 were surveyed adopting computer-aided web interview methodology.
Tata AIA Life Insurance Company Limited (Tata AIA Life) is a joint venture company, formed by Tata Sons Pvt. Ltd. and AIA Group Ltd. (AIA). Tata AIA Life combines Tata’s pre-eminent leadership position in India and AIA’s presence as the largest, independent listed pan-Asian life insurance group in the world spanning 18 markets in the Asia Pacific region. Tata AIA Life has written retail new business weighted premium of Rs. 2,692 crore for the financial year 2019-20. For the same period, the 13th month persistency of the company was at 89.10% and, the individual death claims settlement ratio was 99.06%. One of the fastest-growing companies in the Life Insurance sector, Tata AIA Life maintained its rank no. 5, based on individual weighted new business premium.
About the Tata group
Founded by Jamsetji Tata in 1868, the Tata group is a global enterprise, headquartered in India, comprising 30 companies across ten verticals.
The group operates in more than 100 countries across six continents, with a mission ‘To improve the quality of life of the communities we serve globally, through long-term stakeholder value creation based on Leadership with Trust’.
Tata Sons is the principal investment holding company and promoter of Tata companies. Sixty-six percent of the equity share capital of Tata Sons is held by philanthropic trusts, which support education, health, livelihood generation, and art and culture.
In 2019-20, the revenue of Tata companies, taken together, was $106 billion (INR 7.5 trillion). These companies collectively employ over 750,000 people.
Each Tata company or enterprise operates independently under the guidance and supervision of its own board of directors. There are 29 publicly-listed Tata enterprises with a combined market capitalisation of $123 billion (INR 9.3 trillion) as on March 31, 2020.
Companies include Tata Consultancy Services, Tata Motors, Tata Steel, Tata Chemicals, Tata Consumer Products, Titan, Tata Capital, Tata Power, Tata Advanced Systems, Indian Hotels, and Tata Communications.
AIA Group Limited and its subsidiaries (collectively “AIA” or the “Group”) comprise the largest independent publicly listed pan-Asian life insurance group. It has a presence in 18 markets in Asia-Pacific – wholly-owned branches and subsidiaries in Mainland China, Hong Kong SAR, Thailand, Singapore, Malaysia, Australia, Cambodia, Indonesia, Myanmar, the Philippines, South Korea, Sri Lanka, Taiwan (China), Vietnam, Brunei, Macau SAR, New Zealand, and a 49 percent joint venture in India.
The business that is now AIA was first established in Shanghai more than a century ago in 1919. It is a market leader in the Asia-Pacific region (ex-Japan) based on life insurance premiums and holds leading positions across the majority of its markets. It had total assets of US$291 billion as of 30 June 2020.
AIA meets the long-term savings and protection needs of individuals by offering a range of products and services including life insurance, accident, and health insurance and savings plans. The Group also provides employee benefits, credit life, and pension services to corporate clients. Through an extensive network of agents, partners, and employees across Asia-Pacific, AIA serves the holders of more than 36 million individual policies and over 16 million participating members of group insurance schemes.
AIA Group Limited is listed on the Main Board of The Stock Exchange of Hong Kong Limited under the stock code “1299” with American Depositary Receipts (Level 1) traded on the over-the-counter market (ticker symbol: “AAGIY”).
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