National Insurance Academy's Report on Insurance
- 15 Dec 2023
On 14th December, 2023, the National Insurance Academy's report, disclosed that a staggering 95% of India's population remains uninsured, despite concerted efforts by the government and the insurance regulator to enhance coverage.
- Insurance Regulatory and Development Authoritys’ (IRDAI) Chairman while unveiling the report urged the insurance industry to replicate successful models like the UPI, bank account openings, and mobile penetration to address the substantial insurance gap.
Key Points
- Massive Uncovered Population: The report highlights that 95% of the country's massive population of 144 crore individuals lacks insurance coverage, assuming significance in light of the rising frequency of natural calamities and climate-related disasters.
- Specific Insurance Gaps: The report identifies specific insurance gaps, revealing that 84% of individuals in low- and middle-income categories, along with 77% in coastal regions, tier-2, and tier-3 cities, lack property insurance.
- Compulsory Crop Insurance for Farmers: Calling for compulsory crop insurance for farmers with bank loans, the report suggests support from microfinance institutions and agri-input suppliers through premium financing.
- High Protection Gaps: The report indicates high protection gaps, including a 93% gap in annuity and pension protection, an 87% gap in life insurance, and a significant opportunity for growth in the insurance sector.
- Health Insurance and Pension Coverage Challenges: Health insurance coverage is lacking for 73% of the population, and only 24% are enrolled in employee retirement schemes. Low-income and lower-middle-income segments exhibit notably low penetration rates of 14% and 25%, respectively.
- Cyber Protection Gap: The report highlights a rapidly expanding cyber protection gap, with 62% of customers seeking protection for cyber risks due to increased exposure, higher digital usage, and growing connectivity.
- National Insurance Academy's Role: Established in 1980, the National Insurance Academy in Pune is a leading centre for executive training, research, and study on insurance, pensions, and related disciplines, extending its influence across Africa, the Middle East, Southeast Asia, and within India.
