India, 11 October 2022, Mumbai: India has witnessed a noticeable increase in the proportion of women in the professional sphere from the ground up to the boardrooms, thanks to many positive factors contributing to this. However, a Tata AIA Life Insurance (Tata AIA) survey about Financial Awareness Among Women reveals that Indian women still shy away from making independent financial decisions. The survey also found that they still rely on the ‘man of the house’ when it comes to making financial decisions, although 44% of respondents prefer to make their own financial decisions when they have the option to do so.
Key Survey highlights:
Marriage and Financial Planning
The survey findings indicated that 89% of married women depend on their spouses for financial planning. Before marriage, the father is responsible for the financial decisions for women, which then is tacitly passed on to the husband, post marriage. The survey also indicated that since the average age of women getting married is 20-22 years, they do not have the liberty of deciding about their finances. Thus, marriage is one of the foremost deterrent factors in impeding the independence in financial decision making for women.
Independence for planning finances
For 39% of the women covered in the survey, financial planning is restricted to planning the monthly budget. Of 42% of the women who have a better understanding of financial planning, only 12% are homemakers. According to the survey findings, for most women being financially independent does not necessarily mean they have the freedom to make their finance related decisions. Among the working women, 59% do not independently take decisions on their finances. The ratio is higher in tier 3 markets, where 65% of working women do not take independent financial decisions.
This behaviour is despite the intense narrative of women empowerment and gender equality that has been extensively deliberated over the decades. Laws against women have also been strengthened, and a positive shift has taken place over the years regarding the position of women in society. Yet when it comes to financial planning, women do not get to call the shots.
Intent towards Financial Planning
Given a choice, however, 44% of women are willing to make their own financial decisions. Encouragingly, in tier-2 markets, women are warming up to the idea of making their own financial decisions. Increased awareness of their rights and a general lifestyle upgrade could contribute to this change.
When asked about priorities, the survey revealed that women prioritise their family’s financial security over themselves. Among the various financial instruments, 62% of the women are more comfortable investing in Bank FDs for the benefit of their families. However, when asked about a preference for themselves, they trusted their spouse’s decision.
Attitude toward Life insurance
72% of women believe life insurance is integral to their financial planning post-Covid-19. The respondents from tier-3 cities feel more strongly about this. A savings plan was the most preferred among life insurance products, followed by term insurance. Pension plans and ULIPs are the least preferred options. However, when clearly explained about the different types of life insurance policies, women preferred ULIPs and term insurance solutions.
75% of respondents said ‘Trust’ is essential and would invest in a company they can trust. A detailed understanding of the product is another vital factor in the purchase decision apart from online channels and social media reviews. Further, women are willing to invest in life insurance solutions but expect to pay a lower premium. They also seek guaranteed income through the policy.
Commenting on survey findings, Girish Kalra, Chief Marketing Officer, commented, “Understanding our consumers is a critical component of our Consumer Obsession value. Women are an important stakeholder when it comes to financial planning, however very little is known about their preferences and attitude from a financial planning and life insurance perspective. This survey clearly reveals that we have a journey to travel as a society, to involve women more in the financial planning process. At Tata AIA, we will utilize the learning from the survey to introduce women centric solutions and encourage them to take control of their finances and necessary measures to ensure their own and their family’s financial future.”
Tata AIA Life commissioned the survey to specialised brand research firm eRusaem to gauge the financial awareness amongst women and the freedom to make their own decisions. The study was administered to a total sample size of 1000 respondents between the age group of 25-55 years across 18 main cities in India, spanning Metros, Tier 1 & Tier 2 markets.
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.
About the Tata group
Founded by Jamsetji Tata in 1868 and headquartered in India, the Tata group is a global enterprise, 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’.
The 29 publicly-listed Tata enterprises with a combined market capitalisation of $314 billion (INR 23.4 trillion) as of December 31, 2021. Each Tata company or enterprise operates independently under the guidance and supervision of its own board of directors. 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.
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.
Other 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 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”).
