The vast majority, especially the low-income, rural, and underserved segments of the population continue to be unaware of how crucial insurance is to their future.

People have a perception that insurance is difficult to understand, and they find application and claims processes to be complicated, and customer service poor. Besides, there's also scepticism in spending their hard-earned money for something that's intangible and in the future, when there are other expenses piling up.

Additionally, there's widespread misunderstanding among people as they rely heavily on the 'expertise' of family members or friends, word of mouth, and brokers or agents. People are also unaware of policies that suit them, coverage options, and the risks of different life stages.

Ensure Access to Insurance

This acute lack of awareness has led to a vast mortality protection gap. According to a report published in 2017, 100 crore Indians remain uninsured .

But that's not all. Currently, life insurance companies have opaque, complicated processes which overwhelm a large section of the population. They are confused and in the dark about how to go about buying insurance, the pricing, the benefits, etc. The existing gap can be closed by implementing digital platforms and technologies, leveraging partnerships with MFIs, SHGs, Cooperatives, and similar other group structures who share a certain level of understanding through long-standing relationships with their customers and members. Building trust in this manner and making processes frictionless and claims simpler to obtain ensures easier access to insurance.