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News18
20 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.
Fashion Value Chain
3 days ago
- Automotive
- Fashion Value Chain
This Monsoon Season Drive Worry Free with SBI General's Motor Insurance
As the monsoon season brings much-needed relief through refreshing showers, it also presents a range of challenges for vehicle owners. Waterlogged streets, unexpected flooding, slippery roads and reduced visibility significantly increase driving risks. SBI General Insurance recognises the unique concerns associated with this season and urges vehicle owners to proactively secure the right motor insurance coverage. A comprehensive motor insurance policy not only protects your vehicle from potential damage but also gives you the confidence to navigate rain-soaked roads with peace of mind. Stay protected this monsoon with SBI General Motor Insurance; Drive with confidence and peace of mind; #SurakshaAurBharosaDono To keep you safe and worry-free on the road this monsoon, SBI General Insurance offers the following recommendations to ensure your vehicle stays well-protected. Comprehensive Coverage for Water Damage to engine Ensure that your motor insurance includes comprehensive coverage that takes care of water-related damage like flooding, waterlogging, or engine trouble when vehicle is parked. These issues often arise during the monsoon when rain can affect your vehicle's electrical and vital parts. Timely preparation can significantly help prevent major challenges in the future. We recommend avoiding driving in waterlogged areas to prevent any damage to engine. If you own an electric vehicle (EV), consider purchasing an 'add-on' or 'rider' feature for battery coverage, as most insurance policies do not include battery coverage. These features can extend the policys coverage for an additional cost. Regular Vehicle Maintenance Monsoon can prove harsh on your vehicle, but a little extra care during this season can ensure seamless travel. Regular checks on your brakes, tyres, wipers, and exhaust system can help you stay safe on slick roads. Continue to check water availability for wiper cleaning so as visibility does not get impacted. A well-maintained vehicle isn't just safer; it can also help you avoid insurance claims for problems that could have been prevented. Precautions for Hazardous Conditions Even the best insurance can't replace being cautious. Avoid venturing into flooded streets to avoid serious harm to your vehicle. Before every drive, ensure your lights, brakes, and tyres are in top shape. Remember, your safety and the safety of others matter most, insurance or not. Mr. Udayan Joshi, Chief Operating Officer, SBI General Insurance, added, 'Monsoons can be tough on vehicles, but with the right coverage and some thoughtful precautions, it's possible to stay protected and enjoy the monsoon without worries. We urge all vehicle owners to review their insurance and make sure it's ready to handle monsoon-specific risks like water damage.' SBI General Insurance offers a wide range of insurance solutions tailored to meet every individual's and business's needs. From Comprehensive Motor Insurance and Third-Party Liability cover to add-ons like Engine Protection, Zero Depreciation, and Roadside Assistance, our plans are designed to help you stay financially secure, especially when the skies turn grey. At SBI General, we're committed to offering practical, customer-focused insurance that brings peace of mind. About SBI General Insurance SBI General Insurance, one of the fastest-growing private general insurance firms, backed by the robust support of SBI upholds a legacy of trust and security. We position ourselves as Indias most trusted general insurer amidst a dynamic landscape. Since our establishment in 2009, our expansion has been substantial, growing from 17 branches in 2011 to a nationwide presence of over 145 branches. In FY 2024-25, SBI General Insurance reported a Gross Written Premium (GWP) of INR 14,140 crores, recording a YOY growth of 11.1%. The company received numerous prestigious accolades, showcasing its excellence across various domains. Key honors include being named the winner in the Large General Insurance category at the Mint BFSI Summit & Awards, the 3rd InsureNext Awards 2024 for Best Claims Settlement, and India's Best General Insurer of the Year at the 7th Insurance Conclave Awards. At the India Insurance Summit & Awards 2024, the company secured titles for General Insurance Company of the Year and Leading Implementer of Analytics Technology in Insurance. Additionally, it was honored as the Best BFSI Brand at the ET NOW Best BFSI Brands Conclave 2024 and included in BW BusinessWorld's India's Most Respected Companies. Certified as a Great Place to Work in 2024, the company also excelled at the ETBFSI Exceller Awards 2024 with recognition for Best Claims Management in Insurance and Best CSR Campaign of the Year, further highlighting its commitment to social responsibility and innovation. With a team of over 9,000+ employees and our multi-distribution model covering Bancassurance, Agency, Broking, Retail Direct Channels, and Digital collaborations, we are committed to providing both Suraksha and Bharosa to all our consumers. Leveraging a vast network that includes over 22000+ SBI branches, plus agents, financial alliances, OEMs, and digital partners, we extend our services to even the most remote areas of India. Our offerings cater to Retail, Corporate, SME and Rural segments, and our diverse product portfolio ensures accessibility through both digital and physical channels. For more details:
