About 95% Of Indians Uninsured: Report
Unveiling the report, Irdai Chairman Debasish Panda urged the industry to emulate steps that led to the massive success of the UPI, opening of bank accounts, as well as mobile penetration.
As much as 95% of the country's population is uninsured despite the government and the insurance regulator's efforts to expand coverage, National Insurance Academy said in a report, which was released on Thursday.
Unveiling the report, Irdai Chairman Debasish Panda urged the industry to emulate steps that led to the massive success of the UPI, opening of bank accounts, as well as mobile penetration.
Panda said a compulsory natural calamity insurance in high-risk regions -- as recommended in the report -- is needed if the country wants to achieve insurance for all by the time the nation completes a hundred years as a republic.
According to the report, 95% of the country's population of 144 crore is uncovered.
The high prevalence of lack of insurance coverage assumes importance in the light of the increase in the number of natural calamities and other climate-related disasters to hit the country.
Further, it said 84% people from low- and middle-income categories, and 77% from coastal regions, tier-2, and tier-3 cities, lack property insurance.
The report also called for compulsory crop insurance for farmers who have taken bank loans, supported by premium financing from microfinance institutions and agri-input suppliers.
Giving category-specific insurance gap, the report said currently, annuity and pension protection gap is at a high of 93%.
There is an 87% protection gap on life insurance, which presents a huge business opportunity, the report said.
On health insurance, the report said 73% of the population is uncovered, and called for collaboration between government, NGOs, and industry groups to create micro health insurance with simplified products.
Pension and annuity coverage also lags with just 24% enrolled in employee retirement schemes. Notably, low-income individuals and lower-middle-income segments exhibit a meagre 14% and 25% penetration, respectively, as per the report.
Cyber protection gap is rapidly expanding across sectors due to increased exposure, higher digital usage, and growing connectivity and 62 per cent of customers looking to protect their cyber risk, it said.
The National Insurance Academy was established in 1980 in Pune and has since become the preeminent centre for executive training, research and study on insurance, pensions, and related disciplines across Africa, and the Middle East, and Southeast Asia, apart from the country.
