India’s Insurance Dilemma: Big Dreams, Small Coverage

Image Source: Business Standard

India's insurance industry is itself faced with a major challenge: even as awareness levels are very high, policy ownership remains low due to high prices and lack of awareness among consumers. This disconnect is underscored by a recent Policybazaar survey that found, while interest in buying insurance is high among Indians, a majority of them do not take the next step to buy policies."

The survey, which polled more than 4,500 respondents, highlights the ongoing gap between intent and action. Reasons such as the intricacy of policy frameworks, transparency problems, and affordability add to this difference. Interestingly, only around 23% of those interviewed carry cyber insurance, despite increasing realization of its value, particularly in tier-2 and tier-3 locations where internet penetration is increasing sharply. Likewise, awareness for coverage on mental health continues to be low, with only 27% of those interviewed identifying that their health insurance policies have coverage on mental health.

The report indicates that enhancing awareness, policy language simplification, and reduced premium prices are key to increasing insurance ownership. With the goal to achieve universal coverage by 2047, overcoming these barriers is essential for converting intent into actual policy ownership.

Source: Policybazaar