Irdai Urges Insurers to Expand Coverage and Address Emerging Risks, ET BFSI

Irdai urges insurers to cover India, not just quote stats
The Insurance Regulatory and Development Authority of India (Irdai) has called on insurance companies to focus on expanding the number of people covered under insurance rather than merely improving overall penetration figures.

This push comes as the non-life insurance sector has pledged over ₹300 crore for an awareness campaign over the next three years. The campaign carries the tagline “Achha kiya insurance liya” (Did well by buying insurance).

Addressing industry leaders, Irdai member Deepak Sood said insurance companies need to be more responsive to the changing nature of risk. “The face of risk is changing every day,” said Sood, pointing to how the focus is shifting from conventional physical and business threats to new dangers like cyber risks. “Cyber risks now sit in our pocket, in our mobile phones,” he said.

Sood also said that pricing should not be the primary hurdle to expanding access. “Premium could be anything,” he said. “If we can keep those premiums low, make it affordable for our people, it doesn’t matter what penetration percentage is, as long as we can reach out.”

Tapan Singhel, chairman of the General Insurance Council, said India’s low insurance penetration rate was adding to the country’s financial vulnerability. “Every time a catastrophe hits, millions remain unprotected,” he said.

Singhel cited data to show that general insurance has a relatively low grievance ratio—just 0.35 complaints per 10,000 policies—compared to 0.7 for banking and 4 for e-commerce.

• Published On May 29, 2025 at 05:55 PM IST

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