India’s 95% population uninsured, 73% lack health coverage: Report | India News

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There is an 87 per cent protection gap on life insurance, which presents a huge business opportunity, the report said.

As much as 95 per cent of the country’s population do not have natural catastrophe insurance despite the government and the insurance regulator’s efforts to expand coverage, the National Insurance Academy said in a report, which was released on Thursday.

Unveiling the report, Irdai Chairman Debasish Panda urged the industry to emulate the steps that led to the massive success of the UPI, opening of bank accounts, as well as mobile penetration.

Panda said a mandatory natural disaster 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 per cent of the country’s population of 144 crore does not have natural catastrophe insurance.

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 per cent people from low- and middle-income categories, and 77 per cent 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 says currently, annuity and pension protection gap is at a high of 93 per cent.

There is an 87 per cent protection gap on life insurance, which presents a huge business opportunity, the report said.

On health insurance, the report said 73 per cent of the population was 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 per cent enrolled in employee retirement schemes. Notably, low-income individuals and lower-middle-income segments exhibit a meagre 14 per cent and 25 per cent 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 says.

The National Insurance Academy was established in 1980 in Pune and has since become the preeminent center 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.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Dec 14 2023 | 7:29 PM IST