Latest news with #InsuranceAwarenessDay
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Business Standard
30-06-2025
- Business
- Business Standard
Most Indians underinsured by 30-50% despite increased awareness: Report
Despite increased awareness and broader product availability, a large number of Indian households remain underinsured or misinsured. The Suraksha Kavach Report 2025, published by Bajaj Capital Insurance Broking Ltd. on Insurance Awareness Day, offers a compelling snapshot of India's insurance divide across demographics, incomes, and regions. Coverage exists, but is it enough? From rising medical inflation to financial unpredictability, the report warns that the average Indian's insurance cover is no longer enough to deal with life's emergencies. · 61 per cent of urban households could be financially destabilised by a single major hospital bill. · The average term plan is underpowered by 30–50 per cent relative to actual financial needs. · Gen Z and working women show financial awareness, but often delay purchasing an insurance. 'Insurance is not about betting against bad luck, it's about preserving dignity and securing future choices,' said Sanjiv Bajaj, joint chairman & MD of Bajaj Capital. The urban-rural divide Despite digital expansion, rural India still lags behind when it comes to meaningful insurance adoption: · Only 16 per cent of rural respondents purchase insurance policies independently. · Health top-up awareness is below 20 per cent. · App-based journeys fail to deliver due to trust and language barriers. Urban users, on the other hand, are more likely to understand the nuances of sum assured, add-ons, and portability options. Women remain underinsured Although women are increasingly contributing to household finances, they remain under-protected: · Just 1 in 5 working women owns a life policy. · In many cases, insurance decisions are made by male family members. · Complexity and lack of regional-language support keep many women away from formal coverage. Gen Z's insurance hesitation Young Indians between 21–30 are financially active, investing in SIPs, trading, and budgeting but insurance doesn't top their list: · 64 per cent of Gen Z users research insurance, but only 41 per cent follow through with a purchase. · Barriers include policy complexity, confusion between life and health insurance, and high premiums. More income, still underinsured Even individuals earning Rs 25 lakh or more per year aren't immune to underinsurance: · Many rely on basic or employer-provided group covers. · Lifestyle inflation and asset accumulation are outpacing actual policy coverage. · The assumption that wealth equals protection leads to inadequate contingency planning. The report sends a clear message that India's insurance story is improving in awareness, but not in action. 'We are aware, but we still delay. We are covered, but not adequately,' said Venkatesh Naidu, CEO, Bajaj Capital Insurance Broking Ltd.
India Gazette
28-06-2025
- 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
28-06-2025
- 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)
