Rural India Needs Insurance

Insurance sector: Rural India needs insurance in sachet form

From being a push product & insurance sector is rural INDIA needs insurance.

Nudge product due to rising uncertainties in the time of COVID but affordability is a big issue.

 

Rural India Needs Insurance

 

In 2015, then finance minister Arun Jaitley increased the FDI limit from 26% to 49% & the current finance minister Nirmala Sitharaman has further increased the FDI limit to 74%.

insurance sector with a cap of 26% stake in joint venture with Indian partners in the year of 2000 .

The insurance products penetration was 2.71% and currently it is 3.71% ,which is way below the global average of 7.31%.

The prime reason stated to have been behind the decision to raise the FDI limit was to enhance.

Insurance penetration in India which remains low even after increasing the FDI limit from 24% to 49% in the year 2015.

The untapped rural market

If we must grow the penetration of insurance & we must have simple products which create value since 70% of the population still lives in rural areas.

There has been an enhancement in incomes & acquisition of assets that need protection amidst the rural population.

Creating opportunities for exploration & expansion of insurance business in the otherwise untapped rural market.

All the 57 insurance companies have a very strong presence in urban & metro areas but rural.

Semi-urban India require better coverage in products and distribution.

Insurance companies can use the capital raised by FDI to expand in the rural areas with the help.

 

Workforce in unorganized sector

Nearly 90% of the workforce is in the informal sector with no minimum wages & any kind of social security and with very low disposable income.

India, more than 40 crore informal workers may get pushed into deeper poverty due to Covid-19 outbreak.

Insurance is needed by these people the most. Insurance can prevent these people.

Rural India Needs Insurance

From push to nudge product

While the Covid-19 pandemic has wreaked havoc across sectors, it has proven to be a blessing in disguise for the life insurance sector in general & particularly, health insurance.

From being a push product, insurance has become a “nudge product” due to the uncertainties.

People are more aware about insurance products, but affordability is an issue.

The insurance industry must look at providing sachet insurance products to cover the needs of this strata of the population.

Trust factor

An average Indian household holds 77% of its total assets in real estate, 7% in other durable goods, 11% in gold, and the residual 5 %in financial assets (such as deposits and savings accounts, publicly traded shares, mutual funds, life insurance, and retirement accounts).

Although digitalization can be a way of cutting costs, replacing the human touch with technology can have detrimental effect, especially for long term life and annuity contracts.

Rural India Needs Insurance

Way forward

Increase in FDI limit brings opportunities for the insurance sector in terms of foreign capital infusion.

Which is expected to be $3.5-4.5 billion as the Indian insurance business requires huge capital & deep pockets.

Especially for customers at the base of the economic pyramid & insurers must implement new business models & products to provide.

Administer the risk mitigation solutions at scale that meet their needs. This way the insurance sector can help close the protection gap as well.

Follow us on INSTAGRAM:

33 Instagram Marketing Statistics for 2018 | DrumUp Blog

Follow us on FACEBOOK:

48 thoughts on “Rural India Needs Insurance

  1. Hello! I wish to say that this post iis awesome, great written and come with approximately all important infos.
    I’d like to look extra posts like this! 🙂

  2. Very nice post. I just stumbled upon your blog and waznted to say that I’ve truly enjoyed surfing around your blpog posts.

    In any ase Iwill be subscribing to your feed and I hope you
    write again very soon!

  3. Excellent post. I was checking continuously this blog and I
    am impressed! Extremely useeful information. I caree for such information a lot.

    I was looking for this certain information for a very long time.Thank you and good
    luck.

  4. Wow, amazing blog layout! How long hafe you been blogging for?
    you mase blogging look easy. The overall look of your web site is excellent,as well as the content.

  5. Hello There. I found your blog usjng google. This is an extremely
    well written article. I’ll make sure to bookmark it and return to read more of your useful information.
    Thanks ffor the post. I’ll certainly return.

  6. Excellent post. I was checking continuously this blog and I am
    impressed! Extremely useful information. I care for such information a
    lot. I was looking for this cerftain information for a very long time.Thanhk
    you and good luck.

  7. Greetings! Very helpful advice in this particular article!
    It’s thhe little changes thast make the most important changes.
    Maany thankms for sharing!

  8. Hello there! Wouldd you mind if I share your blog
    with my twitter group? There’s a lott of people that I think wouuld
    really appreciate your content.Please let me know. Thanks!

  9. Hello everyone, it’s my first visit at this website, and piece of writing is genuinely fruitfrul designed for me, keep up
    posting such articles or reviews.

  10. Howdy! I could have saorn I’ve been to this blog befoe but after
    browsing through some of thhe post I realized
    it’s new to me. Nonetheless, I’m definitely delighted I
    found it and I’ll be bookmarking and checking back frequently!

  11. Hello everyone, it’s my first visit at this website, and piece of writing is genuinely fruitful designed for me, keep up posting such articles oor reviews.

  12. I’m very happy too discover this page. I need to to thank you for oness time just
    for this fantastic read! I definitely really liked evewry little bit of it and I havee you bookmarkrd to
    check out new things in your blog.

  13. Very nice post. I just stumbled upon your blog and wanted
    to say that I’ve truly enjoyed sufing around your blog posts.
    In any casze I willl be subscribing to your feed
    and I hope you write again very soon!

  14. I’m very happy to discover thhis page. I nneed to to thank you for
    ones time just for this fantastic read! I definitely really liked every little bit of it and I have you bookmarked to check out neww things in your
    blog.

  15. Hello to every one, since I am genuinely keen of reading this website’s pozt to be updxated regularly.
    It carries nice data.

  16. Note, however, that your local provider or buyer takes
    care of all their very own schedules, so we can never assure a specific time or day for pickup on their behalf.
    While many of our buyers do pay cash for vehicles,
    some have moved to check for the security of tow drivers
    and higher e book keeping. Whether or not you are paid by check or cash
    depends on the coverage of the buyer near you who makes a
    bid on your automobile. Will I be paid by money or verify?
    How long does it take to choose up my car? We can usually pick up the
    vast majority of automobiles in Nashville within 1 to 3 business days.
    Identical day pickups are sometimes attainable, but never guaranteed.
    When you are paid via enterprise examine, remember the fact that The Clunker Junker totally backs up
    all payments and can pay you in full if there is any problem with the
    native purchaser!

Leave a Reply

Your email address will not be published. Required fields are marked *