Latest news with #CoverSure
India Gazette
8 hours ago
- Health
- India Gazette
Insurance Awareness Day: Experts say it's time to simplify and educate to improve health insurance penetration
By Nikhil Dedha New Delhi [India], June 28 (ANI): On the occasion of Insurance Awareness Day, several insurance providers and experts in an exclusive conversation with ANI shared their insights on the challenges facing the insurance sector in India, especially in critical segments like health and life insurance. The experts also offered suggestions to bridge the awareness and adoption gap. One of the key challenges highlighted by industry leaders is the low insurance penetration in health and life segments, despite the growing need. Health insurance, in particular, continues to be seen as optional by many, unlike motor insurance which is mandatory. The lack of awareness, limited financial literacy, and cultural mindset that 'I won't fall sick' contribute to low adoption. Additionally, complex terms like 'waiting period' or 'co-pay' confuse first-time buyers, further discouraging them from purchasing policies. Saurabh Vijayvergia, Founder & CEO of CoverSure, pointed out that insurance often fails to feel practical or personal to the customer. He said, 'People may own a policy, but often have little clarity on what it actually covers, how to claim, or whether it even meets their real needs. The challenge isn't just about affordability, it's about whether insurance is designed to genuinely serve and support the buyer. To drive real adoption, we need to reimagine insurance with the customer at its core.' According to Quickinsure, an online insurance comparison portal, while awareness has improved in urban areas, there's still a long way to go in Tier 2 and Tier 3 cities, and rural regions. They highlighted that only about 37 per cent of Indians have any form of health cover. Quickinsure said in a statement, 'Most importantly, product simplification and transparent communication remain critical; we need to make insurance easier to understand and more relevant to people's everyday lives.' It also noted that affordability, lack of trust due to past claim issues, and complex product structures continue to act as barriers. The role of the government in driving insurance awareness was also discussed. While initiatives like IRDAI's Consumer Education Website and Ayushman Bharat are steps in the right direction, experts believe more targeted and localised efforts are required. Vijayvergia of CoverSure suggested that awareness campaigns must be 'hyper-local, involve families, and treat insurance literacy much like a public-health drive.' Quickinsure added that public-private partnerships, school programmes, and NGOs can play a major role in spreading awareness from the ground up. Experts also stressed that the industry needs to address internal inefficiencies before seeking policy changes like GST waivers. A significant concern is that over 30 per cent of health insurance premiums are taken up by distribution and administrative overheads, which do not add direct value for policyholders. Private players also see an opportunity to close the awareness gap through simpler products and better engagement. Quickinsure emphasised simplifying how insurance is explained, using regional languages, relatable examples, and visual formats. They also stressed the importance of post-sale support, particularly during the claims process, to build lasting trust. Overall, industry leaders agree that insurance will only become widely adopted when it is easy to understand, accessible, and designed to fit into real lives. Awareness, affordability, and trust are at the heart of increasing penetration. (ANI)
Mint
11 hours ago
- Business
- Mint
Insurance Awareness Day: Experts say its time to simplify and educate to improve health insurance penetration
New Delhi [India], June 28 (ANI): On the occasion of Insurance Awareness Day, several insurance providers and experts in an exclusive conversation with ANI shared their insights on the challenges facing the insurance sector in India, especially in critical segments like health and life insurance. The experts also offered suggestions to bridge the awareness and adoption gap. One of the key challenges highlighted by industry leaders is the low insurance penetration in health and life segments, despite the growing need. Health insurance, in particular, continues to be seen as optional by many, unlike motor insurance which is mandatory. The lack of awareness, limited financial literacy, and cultural mindset that "I won't fall sick" contribute to low adoption. Additionally, complex terms like "waiting period" or "co-pay" confuse first-time buyers, further discouraging them from purchasing policies. Saurabh Vijayvergia, Founder & CEO of CoverSure, pointed out that insurance often fails to feel practical or personal to the customer. He said, "People may own a policy, but often have little clarity on what it actually covers, how to claim, or whether it even meets their real needs. The challenge isn't just about affordability, it's about whether insurance is designed to genuinely serve and support the buyer. To drive real adoption, we need to reimagine insurance with the customer at its core." According to Quickinsure, an online insurance comparison portal, while awareness has improved in urban areas, there's still a long way to go in Tier 2 and Tier 3 cities, and rural regions. They highlighted that only about 37 per cent of Indians have any form of health cover. Quickinsure said in a statement, "Most importantly, product simplification and transparent communication remain critical; we need to make insurance easier to understand and more relevant to people's everyday lives." It also noted that affordability, lack of trust due to past claim issues, and complex product structures continue to act as barriers. The role of the government in driving insurance awareness was also discussed. While initiatives like IRDAI's Consumer Education Website and Ayushman Bharat are steps in the right direction, experts believe more targeted and localised efforts are required. Vijayvergia of CoverSure suggested that awareness campaigns must be "hyper-local, involve families, and treat insurance literacy much like a public-health drive." Quickinsure added that public-private partnerships, school programmes, and NGOs can play a major role in spreading awareness from the ground up. Experts also stressed that the industry needs to address internal inefficiencies before seeking policy changes like GST waivers. A significant concern is that over 30 per cent of health insurance premiums are taken up by distribution and administrative overheads, which do not add direct value for policyholders. Private players also see an opportunity to close the awareness gap through simpler products and better engagement. Quickinsure emphasised simplifying how insurance is explained, using regional languages, relatable examples, and visual formats. They also stressed the importance of post-sale support, particularly during the claims process, to build lasting trust. Overall, industry leaders agree that insurance will only become widely adopted when it is easy to understand, accessible, and designed to fit into real lives. Awareness, affordability, and trust are at the heart of increasing penetration. (ANI)
News18
13 hours ago
- Business
- News18
India's Insurance Penetration Below 5%: Perception, Not Price, Is The Hurdle, Say Experts
Not only does insurance penetration remain abysmally low in India, but also density too. India's insurance density—which reflects the average insurance premium paid per person—stood at USD 95 in 2023-24. In comparison, the global average insurance density was significantly higher at USD 889, with USD 361 from life insurance and USD 528 from non-life insurance Despite rapid digitisation and regulatory push, the overall penetration remains very low. On this National Insurance Awareness Day, experts from across the insurance ecosystem point to deeper roadblocks beyond just low awareness—ranging from affordability and access to trust deficits and product complexity. While the cost of insurance is often cited as a deterrent, industry leaders argue that the bigger challenge lies in how insurance is perceived. Many Indians continue to view insurance not as a risk buffer but as an investment or a tax-saving tool. 'Affordability is more of a perception issue than an actual financial hurdle," said Udayan Joshi, Chief Operating Officer at SBI General Insurance. 'The real need is for protection-oriented products at reasonable price points that people can relate to and see value in." Healthcare inflation further complicates this picture, argued Amitabh Jain, Chief Operating Officer of Star Health and Allied Insurance. Even though, he added, some health plans cost as little as Rs 13 a day, rising hospitalisation costs and fraud-related premiums add to the affordability anxiety. The average consumer remains unsure about the utility of buying insurance unless faced with a crisis. The Complexity Conundrum Even when consumers are ready to buy, they often find insurance policies hard to navigate. 'Lengthy policy documents, jargon, and technical terms deter many, especially in rural and semi-urban India," pointed out an insurance industry veteran. Saurabh VijayVergia, Founder and CEO of insurtech platform CoverSure added that insurance is still being 'sold as a one-time product", with minimal post-sale engagement. As a result, trust remains elusive. 'We need to move from policy selling to supporting people throughout their insurance journey—transparently and consistently." Can Micro Products Solve Macro Problems? Advertisement Sachet insurance and pay-as-you-use (PAYU) models have been seen as innovative ways to extend coverage to low-income and rural users. When done well, they are simple, affordable, and easily distributed through mobile wallets or mobility platforms. However, not everyone is convinced of their long-term value. Critics argue that these micro-covers sometimes offer the illusion of protection without truly addressing risk. 'Unless we shift the focus from affordability to adequacy, sachet insurance may remain a tick-box exercise, not a real safety net," noted VijayVergia. Still, when designed right and bundled with local services like agri-inputs or daily commute platforms, sachet insurance has the potential to bring first-time users into the fold. Narendra Bharindwal, President of the Insurance Brokers Association of India (IBAI), believes sachet insurance and usage-based models are promising—especially for Bharat (rural and low-income India). 'When bundled with mobile wallets or agri-tech platforms, these models can reach deep into underserved populations. But they must come with robust claims support and simple communication." Embedded Insurance: A Bridge with Conditions advetisement One solution gaining momentum is embedded insurance—cover that's built into consumer journeys like loan applications, e-commerce purchases, or travel bookings. 'Embedded insurance reduces decision fatigue. It meets people at the right moment, in a context they understand," noted Amitabh Jain. Travel insurance is already seeing success this way. But the success of embedded insurance hinges on clarity and usefulness, not upselling. Bharindwal warned that many consumers still ignore embedded insurance because they don't understand what's covered or how to make a claim. 'Transparency and education are vital. Without them, embedded insurance becomes just another passive feature." Where Do We Go From Here? If India is to close the insurance gap meaningfully, it must focus not just on selling more policies but on building trust, simplifying products, and integrating insurance meaningfully into people's lives.
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Business Standard
a day ago
- Business
- Business Standard
80% of Indians not sure what their insurance policy covers: Survey
Almost 80 per cent of Indians are unsure what coverage their insurance policies offer, said a recent survey that marked out the risk of people being caught unawares in emergencies. As many as 71 per cent of Indians have two to five active insurance policies, but only 35 per cent fully understand what they cover, according to the survey by CoverSure, an insurance tech company. The most commonly held policy is life insurance (63 per cent), followed by health (24 per cent) and motor (13 per cent). But 65 per cent of respondents of such policies said they have little to no knowledge of details like policy benefits, exclusions, or claim procedures. Families unaware The issue goes beyond policyholders. A striking 60 per cent of dependents are unaware they are even covered under any policy. Only one in 10 could correctly describe the insurance benefits available to them. Lack of awareness can lead to missed claims or policy lapses, defeating the purpose of having insurance. Poor document management adds to the problem. The survey found: -29 per cent of insurance customers use physical files -26 per cent depend on spreadsheets -24 per cent rely on SMS alerts -21 per cent store documents in digital folders Such scattered storage can result in delays or issues while filing claims or renewing policies. As many as 36 per cent of respondents prefer advice from insurance executives and 26 per cent are open to digital help. A significant 38 per cent believe they don't need any assistance in insurance at all: that is worrying, given the confusion about coverage and policy terms. Need for insurance literacy 'Focusing on penetration isn't enough. True financial protection only comes when policyholders and their families understand their insurance. If they don't know what's covered or how to use it, the purpose of insurance is lost,' said Saurabh Vijayvergia, founder and chief executive officer of CoverSure The survey, released ahead of National Insurance Awareness Day on Saturday, had over 5,000 individuals across metros and Tier 2 and 3 cities
