In a surprising revelation by the National Insurance Academy, only 5% of India’s population possesses insurance coverage, leaving a staggering 95% without this essential safeguard. Despite concerted efforts by the government and insurance regulators like IRDA, the majority of the population remains indifferent to the significance of insurance. This indifference poses continuous threats to the lives and assets of the nation’s 1.44 billion people.

Insufficient Health Insurance Coverage

A mere 27% of individuals are covered by health insurance according to the report, emphasizing the vulnerability faced due to natural calamities and climate-related disasters. The onus lies on insurance companies to expand their reach. Shockingly, 84% of the lower and middle-income groups and 77% residing in coastal areas, secondary and tertiary cities lack insurance coverage, including a staggering 73% devoid of health insurance.

Urgency of Disaster Insurance

IRDAI has urged the industry to focus on initiatives that could facilitate nationwide proliferation, much like the success achieved with UPI, banking services, and mobile penetration. Chairman Devashish Panda stresses the imperative nature of disaster insurance in high-risk areas, echoing the report’s recommendations. Achieving insurance targets across the board is a necessity for everyone’s security.

The Landscape of India’s Insurance Industry

Presently, India hosts 34 general insurance companies and 24 life insurance companies, underscoring the vastness of the sector. With a growth rate between 15-20%, the insurance domain plays a vital role, contributing nearly 7% to the country’s GDP alongside banking services. A well-developed insurance sector stands pivotal in fostering economic growth.