Technology will play vital role to increase market penetration, spread awareness, build consumer confidence in expansion of Insurance market

Partha Roy, Kolkata: At the 10th edition of INSUREIND organized by CII in Kolkata , Smt Mandakini Balodhi, Director, Department of Financial Services, Ministry of Finance, Govt of India said in her keynote Address that Insurance is an enabler, a resilience & protector of dignity, and a driver of equitable growth. She further said that India has made substantial progress in embedding financial inclusion and ensuring social security. 

Speaking about the various initiatives taken by the Government of India, Smt Balodhi said that the Pradhan Mantri Jeevan Jyoti Beema Yojana and Pradhan Mantri Suraksha Beema Yojana are the two flagship social security schemes that have provided life and accident insurance at reasonable costs fostering a culture of risk protection and “revolutionized access to insurance”. According to her, there have been 21.52 crore enrolments under Pradhan Mantri Jeevan Jyoti Beema Yojna. And there have been 47.28 crore enrolments under Pradhan Mantri Suraksha Beema Yojana so far. The Ayushman Bharat Yojana, Smt Balodhi further said, “stands as the world’s largest health insurance initiatives safeguarding vulnerable people from catastrophic health issue expenditures”.

In the last 30 days, The Ayushman Bharat Vay Vandana Card that was launched on 29 October 2024, offering protection to senior citizens above 70 years, has witnessed a total enrolment of 10 lakh senior citizens out of which 4 lakhs are women. A sum of INR 9 crores has been authorized for the treatment of senior citizens, she said. The Pradhan Mantri Fasal Beema Yojana has been primitive in reducing farmers’ vulnerability to uncertainties. These schemes, coupled with India’s robust digital transformation have laid a robust foundation, yet challenges remain, Smt Balodhi said.  Penetration of insurance in India  below  global average of 7% . 

Smt Balodhi also said that India faces new risks including cyber threats, and climate change which require innovative and dynamic solutions. Other challenges include affordability and accessibility of insurance products to economically weaker sections from availing insurance. However, according to Smt Balodhi, the biggest challenge is the trust deficit and claim issue. Delayed claim settlement and lack of transparency have led to major disruptions in the insurance industry, she added. In her address, Smt Balodhi urged all stakeholders to come together and create an enabling ecosystem to achieve the dream of “Insurance for All” by 2047.