Tata AIA survey shows Indian Millennials are financially prudent, however need to be guided when it comes to life insurance
March 30, 2022, Mumbai: 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.”