Driven by the need to secure family’s future financially and concern around medical emergencies, Life Insurance has emerged as the most preferred financial tool, reveals Tata AIA Life Insurance's Consumer Confidence Survey on the impact of COVID-19 Pandemic. The survey also found that most consumers would buy life insurance in the next six months as a part of their investment allocation.
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 repondents feel that their views towards ULIPs have changed positievely. 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, consumers' 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.
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