According to a report from Swiss Re, the mortality protection gap, both rural and urban combined, in India is USD 17 trillion as of 2019. This translates to 83% of total protection needed, making it one of the largest in the world. Despite progress in technology and availability of plans, insurance continues to remain beyond the reach of poor communities and low-income segments. And 64.6% of India's population continue to live in rural areas as per 2021 data from the World Bank.

Both the insurer and the uninsured face many challenges. Here are a few:

• Insurers find it difficult to collect premiums from people with unstable income
• Lack of bank accounts
• Traditional distribution model includes only corporate or high-value customers
• Lack of awareness
• Complicated processes

Group insurance has the potential to fill many of these gaps. Larger life insurance companies are often unresponsive to localized requirements and processes. They mostly have a one-size-fits-all approach, while group insurance for communities are smaller, flexible, and more localized.

Why Group Insurance?

At present, life insurance coverage in rural India stands at about 8-10% due to many barriers including low-willingness and un-reachability.

A group insurance plan provides coverage to a group of people at reduced costs. The group structure provides administrative efficiencies and takes advantage of existing group framework. Group insurance also has the advantage of having fewer factors to consider, compared to individual insurance. The risk is assessed based on the characteristics of the group as a whole, which reduces the amount of medical history to be collected from each individual.

Group insurance partner benefits

How does partnering with CALI to offer group insurance benefit you?

• Traditional insurance companies don't consider the low-income or unbanked segment as their target audience. Group insurance would be a unique offering, which will deepen trust and confidence in your institution.
• Group assets like funds or other financial assistance that you provide to your group members are more resilient against unfortunate deaths.
• Deepen trust with your members with our quick and simple claims settlement process.
• As your group framework is leveraged to provide cover to your group members, CALI brings best practices to improve group management.

According to a report from Mordor Intelligence, life insurance premiums increased by as much as 14.16% in India in 2021. Currently the average amount for life insurance premium in India ranges anywhere between Rs 10,000 and over Rs 30,000 per year depending on age, duration, and other factors. For the low-income population, these premiums are not affordable. As the average daily wage for unskilled workers amounts to barely Rs 10,000 per month and there's hardly any money left after tending to necessary household expenses.

However, if they could obtain insurance at affordable prices without the complications that usually entail the process, they might consider it. After all, who wouldn't want to keep their family safe? Group insurance obtained through trusted channels like makes this possible.