The Insurance Regulatory and Development Authority of India (Irdai) has called on insurance companies to prioritize expanding the number of people covered under insurance policies, rather than just focusing on improving insurance penetration metrics. This appeal comes as the non-life insurance industry has committed over Rs 300 crore to an awareness campaign titled ‘Achha kiya insurance liya’ (Did well by buying insurance) over three years.
Irdai member Deepak Sood emphasized that insurance companies should address new and emerging risks. “The face of risk is changing every day,” Sood noted, highlighting the shift from traditional physical and business risks to modern threats like cyber risks that are now omnipresent, even in mobile phones.
Sood added that the premium amount is flexible and keeping it low and affordable for the masses is crucial. “If we can keep those premiums low, make it affordable for our people, it doesn’t matter what penetration percentage is, as long as we can reach out,” he said.
Tapan Singhel, chairman of the General Insurance Council, pointed out that India’s low insurance penetration is making its economy more fragile. “Every time a catastrophe hits, millions remain unprotected,” Singhel warned, citing data that shows general insurance has a lower grievance ratio compared to banking and e-commerce.
The regulator’s call for broader coverage comes at a time when the industry is grappling with evolving risk landscapes and the need for more inclusive insurance policies. By focusing on affordability and wider coverage, Irdai aims to enhance the protective reach of insurance in India.
