Insurance for All:

enhancing
insurance coverage
across India
August 2024

Plant-based food :Shaping India’s future food landscape

1
Contents
01 02
Executive Trends shaping the
summary insurance industry

04 06

03 04
Propelling towards
Key barriers limiting insurance inclusion by
insurance for all leveraging digital public
infrastructure
4.1 Accessibility: innovating
10 distribution channels to serve
the underserved

05
4.2 Affordability: digitally
transforming onboarding,
underwriting, and claims
processes
4.3 Availability: crafting
bespoke products for distinct
Call to action for all inclusion customer personas
5.1 Key imperatives for regulators
5.2 Key imperatives for insurers

20 12

2 Insurance for All

Insurance for All 3
 s

Foreword The Indian insurance sector stands at a critical juncture, poised to unlock
tremendous potential in contributing to the nation's economic growth and social
security. With a projected average annual real GDP growth of 6.4% 1 from 2024 to
2028, the economic landscape is ripe for both the life and non-life insurance
segments to flourish. However, this growth trajectory also has formidable
challenges. The sector’s limited distribution reach and insufficient insurance
literacy, particularly in rural areas, severely hamper accessibility. Rising costs and
significant data constraints in underwriting and risk assessment present formidable
obstacles to affordability. Moreover, the sector's current product offerings are
inadequate, failing to meet the diverse needs of underpenetrated markets,
exacerbating the challenge of availability.

As India intensifies its efforts to enhance insurance penetration, particularly in

semi-urban and rural areas, addressing these critical barriers to accessibility,
affordability and availability is not just important but imperative for sustainable
growth. Leveraging Digital Public Infrastructure (DPI)—such as ONDC and OCEN for
streamlined insurance access, ABHA and Account Aggregators for improved
affordability, and Agri Stack and UPI for enhanced availability—can play a pivotal
role in overcoming these challenges. Nevertheless, the sector must confront and
resolve the rising costs and data limitations that complicate risk assessment and
undermine affordability. Expanding distribution networks through strategic
partnerships and innovative channels is essential, and not optional. Coupled with
the integration of AI/ML technologies, this will drive more efficient and

1
India’s insurance market: growing fast, with ample scope to build resilience” Swiss Re, Jan 2024

4 Insurance for All

personalized underwriting, ultimately making insurance more affordable and accessible. Furthermore, the
development of a more diverse range of insurance products tailored to underpenetrated segments, such as
small business owners, senior citizens and gig workers, is a necessity for improving availability. Addressing
these issues demands a concerted effort to boost insurance literacy and trust and to streamline regulatory
processes that support innovation and inclusion.

In this report, Insurance for All: enhancing insurance coverage across India, we explore these challenges and
opportunities, offering actionable insights for policymakers, regulators and industry stakeholders. By
focusing on accessibility, affordability and availability, and by embracing technological advancements and
innovative distribution strategies, the Indian insurance sector can play a transformative role in the nation's
journey towards comprehensive insurance coverage for all.

We are confident that the perspectives shared in this report will inspire meaningful dialogue and drive
collaborative efforts to shape the future of insurance in India.

Rohan Pratik Shah Shruti Ladwa

Sachdev Financial Services Partner,
Consulting Leader, EY India Insurance
Leader, EY Leader, EY
India India

Insurance for All 5

 Executive
summary

This report outlines a strategic vision for Enhancing accessibility: Expanding

enhancing insurance coverage in India by distribution networks through
examining the current state and prospects of the diversified channels such as business
insurance sector. With an average annual real correspondents, tapping bank
GDP growth projected at 6.4% from 2024 to branches in tier 3 and tier 4 cities,
2028, India’s strong economic performance leveraging SHGs, CSCs and building
supports the steady growth of both life and non- partnerships with non-financial
life insurance segments. Key growth drivers entities such as oil and utilities.
include economic advancement, a growing middle Segment-specific agency networks
class, improved digital access, and supportive and initiatives like Bima Vahak will
government initiatives such as Bima Trinity (Bima create segmented distributors,
Vahak, Bima Sugam, Bima Vistaar) and enhance customer access and
Ayushman Bharat. Technological innovations like improve insurance penetration.
AI and cloud solutions are further enhancing Implementing targeted awareness
insurance accessibility and efficiency. campaigns will also build trust and
improve insurance literacy.
Despite these positive factors, the insurance
sector faces significant challenges. Distribution
reach and insurance literacy are limited,
particularly in rural areas. Additionally, Improving affordability: Advancing
underwriting and risk assessment are hindered by underwriting and claims processes
insufficient data and rising costs, affecting pricing through AI/ML technologies enhances
and profitability. There is also a need for a precision and efficiency, with key
strategies including hyper-
broader product range and more innovation to
personalized underwriting and
address diverse customer needs and
dynamic risk assessments.
underpenetrated segments.
Additionally, leveraging Digital Public
This report further talks about the white spaces Infrastructure (DPI), such as ABHA
and opportunities for improvement that will help for better pricing and account
address these challenges: aggregators for accurate
underwriting can further boost
affordability.

6 Insurance for All

 Expanding availability: Developing a as rural populations and gig workers. Insurers, on
broader range of insurance products their part, should leverage the Digital India stack,
tailored to specific customer enhance customer experience through
segments, including small business personalized product designs, and embrace
owners, senior citizens and gig advanced technologies like AI and machine
workers. Innovations in product learning for efficient underwriting, risk
features and leveraging customer mitigation, and improved data governance.
insights will help address market gaps
and enhance product relevance. In conclusion, making India a fully insured society
requires a concerted effort from insurers,
To expand insurance coverage, regulators should regulators and the government. By leveraging
streamline distributor licensing, particularly in technological advancements, addressing
tier 3 and 4 cities, support insurance literacy accessibility, affordability and availability
initiatives, and foster technological innovation challenges, and fostering industry collaboration,
through integrated digital ecosystems. India can achieve the goal of comprehensive
Additionally, they should mandate the creation of insurance coverage for all.
tailored products for underserved segments, such

Insurance for All 7

 Trends shaping the
insurance industry

The global insurance market The evolving macroeconomic landscape,

2.1
combined with climate volatility, technological
advancements, and shifting customer needs, is
The global insurance market is experiencing a acting as a catalyst for transformation in
dynamic period of growth and transformation, technology, infrastructure, business models and
driven by steady economic expansion, strong organizational culture within the insurance
labor markets and rising real incomes. Despite industry. Global insurers are actively embracing
considerable challenges in 2023, including innovative technologies, expanding market reach
persistent high inflation and geopolitical tensions and focusing on customer-centric approaches to
that constrained the global GDP growth to a enhance efficiency and meet evolving demands.
modest 2.6%2, the insurance sector
demonstrated a positive growth
rate of 2.8%3.

Partnerships to boost capabilities Embracing a customer-centric approach

Example: Life insurers are increasingly Example : AI and blockchain enabled instant
collaborating with healthcare/employee claims settlement. In US insurers have created
benefits providers. real time claims settlement platforms

Prudent risk management 2 3 Driving product innovation

Example: Sachetization of product
Example : Adoption of IFRS 17, Risk-
Based Capital frameworks, and (Philippines- affordable product
addressing climate and cyber risk. 1 4 covering multiple risks under one
policy).
Global key
themes
Accelerating automation with
5 Gen AI
Example : Self-service capabilities
Ethical Al, data management and ESG through Gen AI assistants and
are other emerging themes shaping
6
chatbots.

the global insurance landscape

Enhanced penetration in underserved
segments
Example: Contextual segment specific products
like catastrophe insurance, microinsurance for
readymade garment workers in Bangladesh.

2
India’s insurance market: growing fast, with ample scope to build resilience” Swiss Re, Jan 2024
3
Swiss Re world insurance report 2024

8 Insurance for All

The global economic outlook for 2024 appears
favourable, with total premiums (life and non-life) India's life and non-life
expected to increase by 3.2%4 in real terms. This premiums (US$b)
growth is supported by higher interest rates and
hard market conditions, particularly in personal 36
2023
lines. Additionally, higher interest rates will also 100
enhance investment portfolios, improving
32
profitability for both life and non-life insurers. 2022
97
30
2021
93
2.2 The Indian insurance market 27
2020
85
The insurance industry showed notable growth in 27
2019
2023, with non-life insurance premiums growing 81
by 10.4% to reach $35.8 billion5, primarily driven 25
2018
by health and motor insurance segments. 73
Meanwhile, life insurance premiums grew by 24
2.9%, reaching US$100 billion in 20236. 2017
71
20
2016
62
15
2015
56
14
2014
54
13
2013
53

Non-life Life

Source: Swiss Re World Insurance Report

4
Swiss Re world insurance report 2024
5
Swiss Re world insurance report 2024
6
Swiss Re world insurance report 2024

Insurance for All 9

The Indian insurance sector is expected to grow In life insurance, there is a shift towards
at 11-12%7 and be the fastest-growing market protection and guaranteed return savings
among the G20 nations over the next five years products, with 40% of households covered,
(2024-2028). The growth is expected to be largely due to LIC's network.8 The non-life
driven by an expanding middle class, insurance sector is expected to double its
technological advancements and premium-to-GDP ratio over two decades but will
supportive regulations. remain below the global average.

Trends shaping the Indian insurance market

Increased focus
on semi-urban Leading insurers are looking to expand their presence in smaller, underserved
and rural locations (Tier 3/4 locations) to tap into emerging markets and increase coverage
locations

Profitability
Insurers are boosting profitability and productivity with digital tools, robust sales
and
management, prudent risk mitigation and enhanced embedded value (EV)
productivity

Product There is a shift towards developing innovative insurance products with a strong emphasis
innovation on protection, saving, motor and health categories

Customer
centricity with
hyper Insurance providers are accelerating their efforts across hyper-personalized customer
personalization experiences, improving onboarding, underwriting, servicing and claims processes
at the centre

Augmenting Insurers are partnering with InsurTechs and service providers to improve their services
ecosystems and efficiencies. Although ecosystem participation and orchestration are in the early
stages, they present opportunities for future development

While the above trends have driven volume growth in the industry in recent years, penetration and density
levels remain low, as compared to global averages.

7
India’s insurance market: growing fast, with ample scope to build resilience” Swiss Re, Jan 2024
8
Morgan Stanely Investor presentation ASIA, 2023

10 Insurance for All

 Insurance penetration and density

155 95 390 508 9640 4759 718 249 889

11.9 11.5
9.7
7.0
1.1 3.7 3.9 3.9 3.7

Russia India Brazil China USA UK South Africa Emerging World

Asia average

Insurance penetration (premium as a % of GDP) Insurance density (US$)

Source: Swiss Re World Insurance Report

With an overall insurance penetration of 3.7%, "Insurance for All by 2047" initiative underscores
well below the global average of 7.0%9, there is a the regulator's commitment to universalizing
notable gap in coverage that highlights insurance coverage. IRDAI has been proactive in
opportunities for insurers to extend their reach. implementing various measures aimed at product
Targeting tier 2-3 cities and rural areas, where customization, improving grievance redressal
awareness and accessibility are limited, could
mechanisms, and optimizing regulatory
unlock new customer segments and
frameworks. The regulator also launched three
stimulate growth.
major initiatives under Bima Trinity : Bima
Similarly, insurance density in India, which stood Sugam, Bima Vahak and Bima Vistaar – to raise
at approximately 95 in 202310, is relatively low insurance penetration, in particular in semi-urban
when compared to global standards. This low areas, rural towns and villages.
density indicates that the ratio of insurance
premiums to the population remains While the regulator is working towards enhancing
underdeveloped, further emphasizing the scope insurance reach and inclusivity, insurers need to
for increased market penetration. As insurers adapt to these evolving regulatory measures,
look to expand their offerings and improve market dynamics and address the low penetration
product accessibility, addressing this density gap and density as a growth opportunity. The focus
can unlock substantial growth opportunities, should be on leveraging the initiatives and
allowing for a broader distribution of insurance frameworks provided by the IRDAI to address the
products across diverse demographics. existing gaps in coverage and density. This
alignment with regulatory efforts is crucial to
The Insurance Regulatory and Development
fully realizing the growth potential in the Indian
Authority of India (IRDAI) is contributing towards insurance sector.
expanding the reach of insurance in India. The

9
Swiss Re world insurance report 2024
10
Swiss Re world insurance report 2024

Insurance for All 11

 Key barriers limiting
insurance for all

Despite a decade of growth, India struggles with adequate insurance coverage for its population. In a Swiss
Re study on insurance inclusion, India ranked 6th, lagging both advanced and emerging economies like
South Africa. Unlike the US, UK, and Canada, which benefit from high affordability and accessibility due to
higher incomes, and South Africa, which offers low-cost products, India remains weak across all three
pillars: availability, affordability, and accessibility. This low inclusion score highlights the opportunity and
potential for improvement in India.

Accessibility Affordability

1. Limited reach of insurance distribution 1. Underwriting and risk

Insurance coverage remains underpenetrated assessment challenges
in rural India despite ~65%11 of population Limited data and technology adoption
residing there. Private insurers have been challenge an insurer’s ability to underwrite
cautious with their investments in the rural rural segments and balancing high coverage
segment, focusing on profitability. As a with low premiums in middle-income groups
result, rural distribution channels such as BCs not covered by government schemes has
and CSCs are not fully utilized. been challenging for insurers.

2. Inadequate insurance literacy 2. Profitability strain for

Despite government initiatives to introduce insurers led by rising costs
insurance schemes in the rural sector, Insurers focus on driving volume sale and
understanding and awareness remain limited. struggle with new business strain in initial
Insurance awareness programs that highlight years with the cost of opening new branches,
how insurance can address economic and underwriting costs of medicals, servicing
social challenges are limited and inadequate. costs and claims investigation costs
start ballooning.

11
Economic survey of India 2022-23

12 Insurance for All

3.
Availability

1. Product range and innovation

Insurers have focused on product evolutionbasis customer needs, including low-cost, short-term
and niche covers. However, many offerings remain limited and do not address the full demand.
There are gaps in coverage for SMEs, senior citizens, rural areas, gig workers, pre-existing
conditions, and outpatient expenses, with some areas still at a nascent stage.

2. Untapped customers due to limited market insights

Over reliance on external distribution arms of bancassurance and agency and unstructured need
analysis of the rural segment has limited the understanding of underpenetrated customer segments
for insurer

Insurance for All 13

 Propelling towards insurance inclusion by
leveraging digital public infrastructure

4.1 Accessibility: innovating distribution channels to serve the underserved

Enhancing accessibility to insurance in India is crucial for comprehensive coverage across the diverse
population. India can bridge the accessibility gap by expanding alternative distribution channels, leveraging
technology and analytics, and implementing targeted regulations. Scalable solutions, fostering a more
inclusive financial ecosystem will help improve insurance accessibility.

Expanding distribution reach

Expanding distribution reach is essential for improving insurance accessibility in India. By diversifying and
optimizing distribution channels, insurers can effectively meet the varied needs of the population.

Leveraging Bancassurance Embedded Insurance Augmenting new and targeted

for Rural Inroads and New Age distribution models

Segmented proposition and Embedded: Meaningful value Customer segment,

distribution and tapping propositions all under one demographics backed, or
rural ecosystem for growth service touchpoint product segment backed
opportunities man-model
Partnerships going beyond just
- CASA, SME, Salary Accounts the transaction to end to end For instance, Women segment
- BCs, SHGs, CSCs, ownership including servicing backed agency
and cross-sell
Bundling of services through
banking product backed
man-model

14 Insurance for All

 Leveraging bancassurance
for rural inroads BCs can significantly impact the Indian
insurance sector by improving customer
experiences, broadening distribution reach,
Leveraging banks existing customer relationships and offering a diverse range of insurance
and data can streamline insurance distribution, products and services.
making it more accessible and integrated into
customers financial planning  Improving customer experience: BCs can
offer hands-on support and personalized
 Business correspondents (BCs) could act as
guidance throughout the insurance
facilitators in financial services, providing
process, addressing queries and
financial literacy programs, doorstep support
simplifying complex procedures.
and assistance, making them a viable
distribution network for insurance in
 Expanding distribution value
underserved areas
proposition: They can enhance their role
 Insurers can leverage bank branches and BCs
beyond traditional banking services by
to tap into Self-Help Groups (SHGs), Common
focusing on insurance sales, receiving
Service Centres (CSCs) for customer access
competitive commissions, and integrating
and servicing
insurance into their service offerings,
 Innovative distribution models can enable up-
thereby increasing their value proposition
sell to under insured customers who are
and earning potential.
covered in the government schemes like
PMJJBY, PMFBY, PMJAY
 Broadening role and product scope: BCs
can be empowered to handle a wider
range of insurance products, including
comprehensive plans beyond micro-
insurance, and take on roles beyond lead
generation, such as providing policy
advice and assisting with claims, thereby
increasing their overall impact and utility
in the insurance sector.

Insurance for All 15

  Point of Sale person (PoSP): Leveraging
Embedded insurance and
PoSPs who have local knowledge and
new age partnerships community ties, could boost insurance
awareness and facilitate policy sales
 Partnerships with non-financial services  Explore target customer segments for
companies (such as telecom, oil marketing PoSPs and utilize touchpoints such as
and utility companies) that are already fairs, melas, petrol pumps, Kirana stores
catering to underserved customers, offer a etc. to tap into rural segments
significant opportunity to boost  Target loanee and non-loanee farmers for
insurance sales crop insurance, to supplement
 By integrating insurance into digital government schemes and increase
platforms, insurers can streamline rural penetration
transactions and reduce costs, making it
easier for consumers to access and
purchase coverage A US-based insurer has successfully
 Public-private partnerships also present new implemented a strategic approach to build a
opportunities for collaboration, enabling network of specialized agents and use
innovative solutions to reach segmentation to offer insurance offerings to
underserved markets farmers, small business owners and families.

Several US-based insurers leverage Ubers

platform to offer additional coverage to
Increasing insurance literacy
drivers, enhancing their protection with
options like medical and roadside assistance. Increasing insurance literacy is pivotal for
This partnership helps insurers reach drivers enhancing accessibility in India. A focused
efficiently and boost policy sales approach can be adopted by:

Nominating select districts and villages

to serve as pilot areas for targeted
literacy programs
Augmenting new and
targeted distribution models
Developing an insurance index matrix at
the district level, similar to the credit
 Customizing agency and direct sales force: index in banking
Focusing on unique needs of demographics
and customer segments, varied agent
segments can penetrate different customer Coordinated efforts by associations such
persona as NABARD, NGOs, SHGs, Farmers'
 Bima Vahak initiative: To enhance women's clubs, and regulators like RBI and IRDAI
inclusion in insurance, IRDAI launched Bima
Vahak, a women-focused distribution channel
Mass media marketing campaign to
in every Gram Panchayat by December 31,
increase household awareness of
2024. New guidelines allow Bima Vahaks to
insurance and protection
partner with multiple insurers and handle
various services, increasing insurance Marketing…..
penetration in underserved segments

16 Insurance for All

 Affordability: digitally
To boost insurance literacy in India, a district- 4.2 transforming onboarding,
level insurance index matrix can be underwriting and claims processes
developed. It will pinpoint areas with low
awareness and coverage, guiding targeted
To enhance affordability in the Indian insurance
educational initiatives and outreach. By
market, a strategic enhancement in underwriting
revealing disparities in insurance access and
and claims processes is essential. Advancing
literacy, the index can help craft localized
underwriting through AI/ML technologies and
strategies to improve financial literacy and
holistic risk scores improves precision and
increase insurance adoption. Integrating this
efficiency, while leveraging diverse data sources
with banking indices will further offer a
enables more personalized and accurate risk
complete view of financial inclusion, ensuring
assessments. Additionally, modernizing claims
that efforts to enhance insurance literacy
management with AI-driven tools and unified
support broader financial services and
digital platforms further streamlines operations
increase insurance penetration in India
and reduces costs.

*Source: EY analysis Leveraging diverse data sources enables insurers

to create personalized experiences and insights
To build trust, regulators should focus on for both individuals and businesses. For example,
targeted awareness campaigns, e.g. for life by utilizing company registrations, compliance
insurance, they can highlight the differences records, and financial verification, insurers gain a
between protection and savings products. For comprehensive view of each SME. Applying a
retirement planning, they can emphasize the holistic data approach refines risk assessments,
importance of voluntary savings. develops customized solutions and achieves
precise pricing. For individuals, detailed data on
health, behavior and financial status allows for
tailored risk evaluations, enhancing affordability
Boosting accessibility with and operational efficiency through technology-
DPI driven claims modernization.

Leveraging Digital Public

Infrastructure (DPI) can significantly
enhance insurance accessibility:
 ONDC: to streamline gig worker
insurance for delivery personnel
 OCEN: to link insurance solutions
with credit applications,
simplifying insurance acquisition
alongside loans

Insurance for All 17

 Transforming Streamlining One-click
underwriting claims servicing

 Accelerated and hyper-  Modernizing claims with  Insurers should create a fully
personalized underwriting uses technology and integrated digital ecosystem
AI/ML and detailed data for collaborations boosts with a single interface for
tailored risk assessments and efficiency and reduces costs, staff, customers and partners
pricing fostering affordability that can seamlessly assimilate
 Dynamic underwriting involves data from every system
real-time adjustments based on
continuous data collection and
customer behavior

Transforming
underwriting

 Accelerated underwriting: Integrate financial  Continuous engagement and data

underwriting through fintech collaborations collection followed by interventions-
 Shift from rule based to AI/ML based lifestyle stage
underwriting  Dynamic adjustment based on usage and
 Reduction in manual medical UW and customer behaviour, such as reduction in
applicants requiring invasive medical premium of term plan or enhancement of
exams term plan if customer follows healthy
 Streamlined financial UW through tie-ups lifestyle
with fintechs and data aggregators  Holistic risk score: Integrate diverse data
 Hyper-personalized underwriting: Leverage sources and leverage advanced technologies
data to tailor risk assessments and pricing to achieve a more nuanced understanding of
 Develop granular view of risk categories risk and enhance overall affordability
using holistic data sets  Combining financial, lifestyle, health and
 Differential pricing and UW grids using location parameters improves risk
real time customer data from wearables, evaluation precision
health and fitness app etc.  Real-time premium adjustments based on
 Personalized offers and enhanced lifestyle behaviors foster affordability and
accuracy based on customer micro- encourage healthy habits
segment and distinct needs  Advanced technologies and enhanced
 Dynamic underwriting: Enable ongoing data data interoperability streamline and
collection and real-time adjustments based on strengthen the risk evaluation process
customer behavior and lifestyle changes,
optimizing policy terms and premiums

18 Insurance for All

 Modernizing and A prominent Chinese insurer provides AI-
streamlining claims based health assistance to direct patients to
appropriate medical specialties. Their
Embedded insurance in India has rapidly healthcare platform offers online
advanced, enabling swift policy purchases. consultations, with AI integrated to support
However, the process for handling service data collection and diagnosis
requests and claims remains cumbersome,
potentially hindering broader adoption.
Addressing this challenge and streamlining the Leveraging diverse data sources
backend processes will enable insurers to match
Insurers will need to leverage various business or
the claims and servicing experience to the
individual-specific information in order to
convenience of purchasing insurance.
enhance the affordability:
 Implement AI-driven chatbots and virtual
 Utilize company registrations, compliance
assistants to manage service requests and
records and financial verification for a
claims, and apply machine learning
comprehensive view of each SME
algorithms to assess claims swiftly and
 Apply a holistic data approach to refine risk
accurately, reducing manual intervention and
assessments and develop customized
speeding up approval
insurance solutions
 Develop unified and comprehensive digital
 Achieve more precise pricing and enhance
platforms for customers to purchase, file and
affordability through detailed and accurate
track claims, and communicate with support
risk evaluations
teams, ensuring mobile accessibility
 Foster partnerships among insurers, fintech
companies and regulators to standardize
claims processing protocols, facilitating
Boosting accessibility with
smoother transactions and faster resolutions DPI
Leveraging Digital Public
A leading US InsurTech is using AI and
machine learning to process claims in
Infrastructure (DPI) can significantly
seconds. Their chatbot handles customer enhance insurance affordability:
interactions, making entire process quick and
 ABHA: Enables improvement in
user-friendly
pricing and reduction of claims
cost
 Account Aggregators: Enhances
underwriting precision; electronic
One-click
consent through Sahamati
servicing
supporting accurate pricing
 Centralized KYC: Enables
Focus on creating seamless and efficient immediate issuance at a lower cost
customer experiences by leveraging advanced
technologies and streamlined processes

 Develop intuitive interfaces for policy

management, claims filing and service
access, with real-time notifications
 Use AI-driven chatbots and RPA for common
queries and back-end tasks, enabling easy
updates and one-click payments
 Implement AI for rapid claims assessment and
"Zero Touch Claims," improving accuracy,
fraud detection and reducing costs

Insurance for All 19

 4.3 Availability: crafting bespoke products for distinct customer personas

Many insurers currently lack comprehensive

market insights, which further restricts their
Customer Hyper-
ability to understand and address the specific persona driven personalized
risks and needs of the underpenetrated product product
customers. Without these insights, insurers categories offerings
struggle to identify unique challenges, resulting in
less relevant solutions. However, gaining deep
market insights allows insurers to pinpoint these Leveraging
issues and develop tailored solutions. Product
Innovations for
For example, understanding the specific risks Insurance
faced by a garment retailer in Gandhinagar, Delhi, Growth
such as waterlogging, enables insurers to create availability
targeted parametric lite coverage options. This Products
approach not only addresses the retailer's unique Innovative and with need-
needs but also bridges the existing gaps in inclusive product based features
strategies for for enhanced
product range and innovation, enhancing the
expansion value
overall effectiveness of insurance offerings.

Customer persona driven Hyper-personalized

product categories product offerings

Insurers can tailor products to specific customer Insurers can use data analytics and AI to create
segments like small business owners, senior highly customized insurance products, tailoring
citizens, or gig workers, addressing their unique policies to individual health conditions, lifestyle
needs and filling market gaps with targeted choices, and financial situations for more relevant
solutions. and effective coverage
 Insurers can develop women-centric offerings  Create bite-sized, on-demand covers in life/
such as enhanced coverage for diseases non-life and single disease covers in health to
affecting women and comprehensive target rural and millennial customers
maternity care  Explore modular, hyper-customizable
 They can tailor plans for the segments products like small ticket size shopkeeper’s
typically outside the purview of traditional insurance and bundled SME/MSME plans
term insurance such as ladder term  Occupation related plans covering
insurance, plans providing coverage for occupational linked diseases, hazards, on-job
customers with income of less than INR5 injuries
lakhs or coverage for career breaks  Subscription based solutions for gadget
 They can introduce comprehensive plans for insurance, cyber coverage, device protection
entire families, combining ULIP, Par and Non-
Par products to drive wealth creation
An Italian insurer offers its customers a
completely modular product with 13 custom
building blocks including term, health and
property insurance allowing customers to pick
and choose and watch the pricing effect
real time

20 Insurance for All

 Innovative and inclusive
product strategies for A leading France-based insurer launched
expansion CareForAll plan to cater to customers living
with chronic diseases, the elderly and critical
Insurers can expand product offerings to include illness survivors
innovative group insurance products, SME
products and other accessible options.

 Extend group life insurance to gig workers

and buyer groups like telecom service users
 Develop innovative SME-focused products Boosting accessibility with
such as single coverage for both fire and DPI
health, solar panel utility coverage add on, or
variable risk coverage for working Leveraging the following Digital
capital/goods Public Infrastructure (DPI) can
 Simplify underwriting by reducing questions
significantly enhance insurance
and using alternative data sources while
avoiding proxy discrimination
availability:
 Agri Stack: speeds up claims
processing and supports
innovative crop insurance by
Products with need based streamlining verification and
features for enhanced value addressing regional risks
 UPI: facilitates embedded
Insurers can enhance their offerings by insurance by integrating insurance
developing innovative features such as flexible options directly into payment
pricing, adjustable term options and value-added processes, making it easy for users
services. to add coverage during
 Implement usage-based insurance models transactions
that adjust premiums based on coverage use
 Develop products with specific coverage for
illnesses or conditions
 Provide adjustable term policies that
customers can modify as their needs change
 Offer wellness benefits like diabetes
management plan, healthy heart program,
online and free consultations and home
healthcare discounts

Insurance for All 21

 Call to action for all
inclusion

Accessibility Affordability Availability

 Expanding distribution  Advanced underwriting  Broad range of products

network  Transform claims and  Innovations in product
 Improve insurance literacy servicing features
 Awareness campaigns  Leverage data sources  Enhance product relevance

Insurance Insurance Regulatory InsurTech

Government
companies intermediaries bodies firms

Collaborate || Focus || Deliver || Sustain

5.1 Key imperatives for regulators analytics to refine risk assessments,

personalize products, and optimize
Enhance market reach and penetration underwriting processes
 Promote investments in technology and
 Simplify the distributor licensing and development with continual relaxation in the
onboarding guidelines, esp. in tier 3 and 4 Expenses of Management (EoM) guidelines
cities to increase insurance coverage in rural
and underserved regions through targeted
distribution channels Support customized product
 Support efforts to improve insurance literacy development
and awareness among economically weaker
sections with educational campaigns  Mandate product creation for rural segment
and programs and encourage the development of age-
specific and needs-based insurance products,
including those for women's unique
Foster technological innovation requirements, gig workers, and
comprehensive health coverage
 Support the development of integrated digital
 Promote retirement planning products and
ecosystems across sectors to streamline
awareness programs to foster long-term
operations and enhance customer
financial security and promote products
experiences and advocate adoption of
targeting MSMEs, premium financing option
advanced technologies like AI and data
and short-term life

22 Insurance for All

Revision in data and infrastructure Embrace and invest in technology as
frameworks next big enabler
 Provide flexibility on data collection and  Harness technology and advanced data
storage for insurers for need assessment and analytics to offer personalized solutions
offer customized product offerings supported tailored to customers lifestyles and
by comprehensive data privacy and security behavioral needs
regulations  Leverage predictive AI and machine learning
 Extend digital network infrastructure to as risk mitigation and fraud detection tools
banks, financial institutions and local bodies for claims verification and assessments,
in Tier 3/4 cities to drive insurance weeding out underwriting risks
penetration in rural areas

Focus on risk assessment and

5.2 Key imperatives for insurers
enhancing data governance
Leverage Digital India stack
 Adopt alternative pricing mechanisms and
 Leverage usage of credit bureaus and leverage Risk Based Capital (RBC) framework
alternate credible data sources and simplify principles to address evolving cyber risks
consent mechanism for AA platforms to (data loss, leaks, and compromise) and
enable more efficient and data backed climatic risks (natural disasters like cyclones,
underwriting earthquakes, floods etc.) impacting property
 Leverage Ayushman Bharat Digital Mission and life
(ABDM) to drive transparency  Collaborate with other insurance players and
InsurTechs for information symmetry and
value chain optimization
Placing customer experience at the
forefront
 Understand target customer needs and
behavior and invest in product designs that
provide personalized experiences tailored to
specific lifestyles and needs
 Develop an omni-channel strategy, enabling
interoperability among digital assets and
providing access to real time data

Insurance for All 23

24
Conclusion and

Insurance for All

way forward
India's pursuit of universal insurance coverage
stands as both a significant opportunity and a
daunting challenge. As the nation stands on the
edge of a transformative era, the task of extending
insurance solutions to every corner of the country
remains intricate and demanding. While economic
growth and a positive trajectory for the insurance
sector provide a solid foundation, substantial
hurdles persist in closing the gaps in insurance
penetration and density.

To address these barriers, a comprehensive strategy

is essential. Enhancing accessibility requires
innovative distribution models, a boost in insurance
literacy, and the effective use of digital platforms to
engage diverse customer segments. Similarly,
improving affordability hinges on advancing
underwriting practices, leveraging technology to
streamline claims processes, and adopting data-
driven risk assessment methods. Furthermore,
expanding product offerings and gaining deeper
insights into customer needs will be crucial in
bridging gaps in product availability and innovation.

For these strategies to be effective, regulatory

bodies must play a pivotal role by fostering a
supportive environment for innovation and
expanding market reach. Insurers, on their part,
should prioritize customer experience, harness
digital advancements, and engage in collaborative
efforts to enrich the insurance ecosystem. By
embracing technology and refining data governance,
the industry can provide more personalized and
efficient solutions.

As we look ahead, India's journey towards

“Insurance for All” is not just a goal but a call to
action. With strategic efforts from all stakeholders,
the nation can overcome existing barriers and pave
the way for a future where every citizen is
empowered with the security and peace of mind that
comprehensive insurance coverage brings.

Insurance for All 25

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26 Insurance for All

Core team
Shruti Ladwa
Partner, Insurance Leader, EY India
Nilesh Naker
Partner, Technology Consulting
Varun Gupta
Partner, Risk Consulting
Rajeev Arora
Partner, Business Consulting
Manikandan Hariharan
Partner, Technology Consulting
Mayur Chawla
Partner, Business Consulting
Sagar Kendre
Partner, Business Consulting
Gandhar Parnandiwar
Senior Manager, Business Consulting
Arti Nagdeo
Senior Manager, Business Consulting
Chetna Khanna
Consultant, FinTech team

Contributors
Karan R Teluja
Global FS Senior Analyst, Insights
Jatin Bhutani
Global INS Analyst, Insights
Gaurav Chhabra
Global INS Analyst, Insights
Vipin Vishwanathan
Global INS Analyst, Insights
Vaibhav Mishra
Global FS Analyst, Insights

Insurance for All 27

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28 Insurance for All