The National Insurance Academy (NIA) has reported that about 95% of India’s 144 crore population remains uninsured. This significant gap in insurance coverage, despite concerted efforts by the government and the Insurance Regulatory and Development Authority of India (IRDAI), poses a substantial challenge for the country.
The report further highlights a 73% health protection gap, leaving over 40 crore individuals without health insurance. It attributes this gap to low penetration, inadequate coverage, rising healthcare costs, and other factors such as limited product understanding and accessibility. The report calls for collaboration to create micro health insurance products.
There is a significant lack of property insurance, with 84% of low- and middle-income individuals and 77% from coastal, tier-2, and tier-3 cities being uninsured.
The report advocates for mandatory crop insurance for farmers with bank loans, suggesting premium financing from microfinance institutions and agri-input suppliers.
Annuity and pension protection gap stands at 93%, with an 87% gap in life insurance, indicating substantial business opportunities.
The report identifies a $106.8 billion business opportunity in bridging the life insurance gap by 2030. It suggests that insurers target specific demographic segments with tailored marketing strategies and products, including bundled savings and risk protection for the 26-35 age group, and comprehensive risk protection for the 36-45 age group. For customers over 45, who exhibit higher awareness levels, the report recommends insurance products with added benefits.