Awareness, affordability, and attractiveness: Insurance sector's budget wishlist

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Subscribe to enjoy similar stories. The Union budget 2025 has provided a good opportunity to consider measures that can further support the insurance sector, which is fundamental to fostering a secure and resilient economy, supporting both individual and collective financial well-being. The Insurance Regulatory and Development Authority of India’s (Irdai) vision of ‘Insurance for all by 2047’ aligns closely with India’s broader ambition of becoming a developed economy within a similar timeframe.

Achieving this vision requires effort to address several priorities for the insurance sector. This wishlist focuses on three key areas that merit attention and action: improving public awareness, enhancing the affordability of basic insurance products, especially for more vulnerable segments, and increasing the attractiveness of insurance to drive penetration for basic coverages. Allocating budgetary support for initiatives aimed at increasing public awareness and understanding of insurance products and their benefits is imperative.

Despite ongoing efforts by the regulator and government, awareness about insurance remains limited, particularly among the financially-weaker sections, tier-3 and tier-4 towns and rural areas. These segments, arguably the most in need of insurance cover, often lack adequate knowledge about available products and their advantages. Perhaps, a parallel can be drawn with the mutual funds sector, where awareness campaigns have significantly contributed to the sector’s growth in India.