State of Insurance Sector in India: Need for Inclusive Insurance
The share of India’s insurance business in the global context is just 2%. Today India is one of the fastest growing economies in the world. With its population of more than 1.3 billion, it offers a huge market for all kind of products, including insurance products. But then at the same time there exists a gap between where the insurance sector is at the moment and what its potential is. To fill up this gap, to increase insurance penetration and density in India, there is a need of Inclusive Insurance. This calls for having appropriate and affordable insurance products for the unserved or underserved section of the population. This would require the expansion of operations and reach of the insurance industry to cover the most vulnerable section of the society. It is in this direction, that IRDAI, the market regulator for Insurance sector, has taken number of progressive steps in the direction of promoting inclusive insurance model in India. This research article tries to explore into those steps taken to overcome the bottlenecks faced in the insurance sector. This study is primarily based on the annual reports of IRDAI and also on the various research articles available on internet.