New Delhi: A recent report from the National Insurance Academy revealed that 95% of the country’s population remains uninsured, with 73% lacking health coverage. This issue poses significant challenges to the nation’s resilience against natural calamities and other climate-related disasters.
The report urges the need for decisive action, drawing parallels with the success of initiatives such as the UPI, opening of bank accounts, and mobile penetration. IRDAI Chairman Debasish Panda recommended adopting similar strategies and proposed the implementation of compulsory natural calamity insurance in high-risk regions.
The report also recommends compulsory crop insurance for farmers who have taken bank loans, supported by premium financing from micro-finance institutions and agri-input suppliers.
The report reveals specific insurance gaps, including a 93% shortfall in annuity and pension protection and an 87% protection gap in life insurance.
Health insurance coverage is reported at a mere 27%, prompting calls for collaboration between the government, NGOs, and industry groups to create micro health insurance with simplified products.
Pension and annuity coverage are also alarmingly low, with only 24% enrolled in employee retirement schemes. Notably, low-income individuals and lower-middle-income segments exhibit a meagre 14% and 25% penetration, respectively.
The cyber protection gap is widening across sectors due to increased exposure, higher digital usage, and growing connectivity, with 62% of customers seeking to mitigate their cyber risks.
