How will insurance reach every citizen for 25 years like this?

The country’s insurance regulator IRDAI has set a target of providing insurance to every citizen in 25 years. The current system of insurance is not such that insurance cover can be extended to maximum number of people. In fact, the situation is such that even one-fifth of the country’s population does not have insurance cover.

Only 19 percent of households bought insurance for savings

Money9’s survey conducted in 20 states and more than 100 districts across the country shows that only 19 percent of the country’s households have bought insurance for savings and more than 75 percent of the households that buy insurance are those whose monthly income is 35 thousand rupees above. Only 23 percent of the families whose monthly income is between 15 to 35 thousand rupees have insurance and only 12 percent of the families earning less than 15 thousand rupees have life insurance cover. Money 9’s survey also shows that 86 percent of the country’s families whose monthly income is below Rs 35,000 means that a large section of the country is untouched by life insurance.

The condition of more than half a dozen states is bad

In the case of life insurance cover, the condition of more than half a dozen states is even worse. Money 9’s survey shows that only 7 percent of the families in Bihar have bought insurance for savings. Jharkhand is also in a similar situation. Andhra Pradesh, Telangana, Uttar Pradesh, Uttarakhand, Punjab and Tamil Nadu are also far behind the national average in this regard. However, states like Karnataka, Delhi and Maharashtra are above the national average in terms of insurance cover.

The penetration of insurance in the country is very small

IRDAI’s own figures show that the reach of insurance in the country is very small. IRDAI has said in its report that during the financial year 2021-22, the contribution of insurance premium amount to the country’s GDP is only 4.2 percent. Looking at these figures of insurance reach across the country, the insurance regulator is preparing for major changes in the insurance sector. In the future, the rules for setting up insurance companies can be relaxed, due to which more companies will be able to enter the insurance business. If this happens, the competition in the insurance market will increase and the expectation of insurance purchase being cheaper than before will also increase. are above the national average in terms of cover.