Tata AIA survey shows Indian Millennials are financially prudent, however need to be guided when it comes to life insurance
- Most of the respondents across the age band 22 – 35 years continued to save even amid the uncertainties introduced by COVID-19.
- When it came to life insurance, those in the younger age band i.e., 22 – 25 showed low awareness.
- Amid the aware and invested in life insurance, 41% were not sure if they were adequately secured.
MUMBAI, India, March 30, 2022 /PRNewswire/ — Indian millennials seem to have realized the importance of maintaining a healthy savings regime even as the external scenario remains uncertain and ever changing. This is one of the key findings of the survey done by Tata AIA Life Insurance with Indians in the age group of 22 – 35 years.
Even as COVID-19 impacted the country and the world in recurring waves, more than 64% of the respondents in the chosen age group either maintained or increased their savings during the pandemic. If one were to break the millennials further into age bands, the results are truly encouraging – while 70% of those in the age group 30 – 35 increased or maintained the proportion of savings, 68% of those in the 22 – 25 years age band displayed similar behaviour. This indicates that people are showing responsible financial behaviour from an early age.
While ensuring a healthy savings ratio, Indian millennials across age bands believe in planning their own investments rather than depending on others. This shows their level of confidence in themselves. Given their comfort in accessing online platforms and researching the entire process, this trend is poised to continue in the future. It was only in the youngest age band within millennials i.e., 22 – 25 years wherein 1 in 5 respondents showed dependency on their parents in deciding on the right financial investment. On the other hand, 90% of those in 26 – 29 and 96% of those in 30 – 35 took their own decisions when it came to financial planning and investing.
When one looks at the geographical differences, the findings are not surprising. Those in metros did show a higher level of independence with 93% taking their own decision towards financial planning. This behaviour was marginally lower for those in Tier 1 and 2 towns with 89% taking their own financial decisions. Interestingly, a small percentage of respondents in metro and tier 1 cities relied on financial experts whereas those in tier 2 relied completely on their parents when not taking their own decision with regarding to put their hard-earned savings in the right instrument.
Amid the encouraging habits towards financial prudence, Indian millennials are yet to become fully aware of and understand solutions such as life and health insurance. While 57% of those in the 30 – 35 age group were aware of life insurance, only 20% among the 22 – 25 years affirmed on this aspect. Similarly, when it came to health insurance, 57% between 30 – 35 years were aware of the category but only 19% responded in the positive among the 22 – 25 years age band.
Interestingly, among those who had secured themselves with a life insurance, 43% believed they were adequately protected. However, a similar 41% felt the other way, being unsure if they had taken a policy with sufficient cover. This clearly indicates the need to equip Indian millennials with the right information and understanding of the level of insurance required as they move through different life stages.
Commenting on the findings of the research exercise, Venky Iyer, EVP and Chief Distribution Officer commented, “At Tata AIA, our endeavour is to stay aligned to the changing needs of our customers and partner with them as they work towards realizing their dreams in life. The survey clearly indicates the need for insurers to work hand in hand with younger consumers to help them understand the level of insurance that they need as they progress through different stages in life. At the same time, it is important for us to help them appreciate the diverse solutions that life insurance offers across protection, savings, retirement, and wealth generation-oriented offerings, thereby ensuring that they are well secured while they strive to do their best in all walks of life.”
About Tata AIA Life
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. For the financial year 2020-21, the total premium income of Tata AIA Life increased to INR 11,105.09 crore, a growth of 34%. For the same period, the Company registered retail new business weighted premium of INR 3,416 crore. The 13th month persistency of the Company was at 88.28%, and the Individual Death Claims Settlement ratio was at 98.02%. 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 2020-21, the revenue of Tata companies, taken together, was $103 billion (INR 7.7 trillion). These companies collectively employ over 800,000 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 $314 billion (INR 23.4 trillion) as of December 31, 2021. Companies include Tata Consultancy Services, Tata Motors, Tata Steel, Tata Chemicals, Tata Consumer Products, Titan, Tata Capital, Tata Power, Tata Communications, Indian Hotels, Tata Digital and Tata Electronics.
About AIA
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 – wholly-owned branches and subsidiaries in Mainland China, Hong Kong SAR3, Thailand, Singapore, Malaysia, Australia, Cambodia, Indonesia, Myanmar, New Zealand, the Philippines, South Korea, Sri Lanka, Taiwan (China), Vietnam, Brunei and Macau SAR4, and a 49 per cent 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 Asia (ex-Japan) based on life insurance premiums and holds leading positions across the majority of its markets. It had total assets of US$330 billion as of 30 June 2021.
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, AIA serves the holders of more than 39 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”).
