Home » Newsletters » Volume-i-2024 » Why is insurance penetration abysmally low in India
According to the Economic Survey 2022-23, Insurance in India is expected to be one of the fastest-growing sector in the world over the next decade.
Insurance Regulatory and Development Authority of India (IRDAI) as part of its Vision ‘Insurance for all’ by 2047, aims that every citizen should have an appropriate life, health and property insurance cover and every enterprise is supported by adequate insurance solutions. It also aims to make the Indian insurance sector globally attractive. What is the reason that despite of having intrinsically high value proposition, policyholders under-appreciate insurance? The answer to it lies in the post-purchase journey.
CAMSRep, in collaboration with AGR Knowledge Services unveiled a report on “Why India isn’t claiming its insurance” at the symposium conducted by CIFIL IIT Madras, India on 26th February 2024; emphasizing the pain points faced by stakeholders in the post-purchase journey. The study juxtaposes the policyholder’s challenges with the insurer’s perspective and uncovers perceptions that can help transform the policyholder experience.
Key Insights
- There is a perception gap between insurers and policyholder
- Policyholder wants to be understood, not educated
- Policyholder needs:
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| Customized products |
Simplified processes |
Empathetic Services |
Areas of Misaligned Perceptions
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| Product understanding |
Need fulfilment |
Product service |
Benefit realization |
