Inclusive Insurance in India
Country Briefing Report January 2023
☝️INTRODUCTION
With the second largest population globally, India is the world’s largest democracy. The growth of its insurance market has been aided by government initiatives, a unique financial inclusion infrastructure (combining accessible financial services through Jan Dhan with Aadhaar digital ID and mobile connectivity – known as the JAM trinity), obligations of insurers to rural and social sectors, increased use of technology, and an extensive distribution network for last-mile access. India holds huge potential for inclusive insurance but stakeholders in the sector need to come together to deliver greater value to low-income users by offering innovative, scalable, and sustainable solutions.
KEY TAKEAWAYS
🚑 Ayushman Bharat PM-JAY
It is the largest health insurance scheme in the world and is funded by the Indian government.
💳 The Pradhan Mantri Fasal Bima Yojana (PMFBY)
A crop insurance scheme sponsored by the government, was introduced in 2016 to support the development of the agriculture sector.
📑 Insurance Regulatory and Development Authority of India (IRDAI)
The IRDAI has undertaken various initiatives to boost insurance penetration, such as introducing facilitative tax structures, permitting insurers to conduct video-based know-your-customer (KYC) checks, launching standardised insurance products and allowing insurers to offer rewards for low-risk behaviour.
🛡️Life insurance
Life insurance captures the largest market share in premiums earned.
📱Technology
The use of technology, the possibility of reduced distribution costs and customised products could increase participation of private sector stakeholders to identify low-income individuals and sub-segments as emerging customers and create value for them.
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