Page 87 - BFSI CHRONICLE 10 th Issue (2nd Annual Issue ) 23062 COPY.indd

BFSI Chronicle, 2 Annual Issue, 10 Edition July 2022
nd
th
Present phase of the sector for secondary and tertiary care hospitalization
Economic survey of 2020-21 has recorded to >10.74 crore poor and vulnerable families
insurance penetration to as low as 3.76 percent. (i.e., ~50 crore beneficiaries), which constitute
It is really too low, but put it from different the bottom 40% of India’s population.
perspective, the sector has tremendous scope Future of the sector
and potential keeping in mind the size of the
population and huge goods market. Insurance In 2018, the Government of India launched the
penetration is computed as ratio of insurance ‘Ayushman Bharat’ scheme (as outlined by the
National Health Policy 2017) to make healthcare
premium to GDP.
services more accessible and affordable to
The penetration in non-life segment, in fact, citizens and aid the country in achieving its
slipped to 0.94 per cent from 0.97 per cent in target of universal health coverage (UHC) by
2018. The life insurance segment recorded 2030.
higher penetration at 2.82 per cent from 2.74 in
The expansion of the insurance market is being
2018. (Sharma, 2021).
backed by significant government authorities’
"Globally insurance penetration was 3.35 per projects, powerful democratic considerations,
cent for the life segment and 3.88 per cent favourable supervisory situation, enhanced
for the non-life segment in 2019. Although alliances, product improvements, and exciting
the penetration is lower in India for both, it allocation paths.
is particularly low for non-life insurance as
compared to other countries," says Economic The boost in the FDI in Insurance from 49%
Survey. to 74% announced in the Union Budget
(Feb2021) shall further help in pushing
The pandemic period has contributed to the increased dissemination and coverage by
better performance of the sector. The pandemic facilitating supplementary opportunities for
has increased the potential for health and life capital funding needed for the extension of
insurance in India. the insurance industry in India. The sector has
enough margin to grow.
The following are the two key components of
‘Ayushman Bharat’: (https://www.ibef.org/, Conclusion
n.d.) The awareness of insurance concept has yet
to reach to common people. Motor vehicles
Establish Health and Wellness Centres (HWCs):
insurance has grown fantastic and would
Launched in February 2018, the scheme aimed grow with wide coverage. But other aspects
to provide extensive healthcare services to
of it require revolutionary scheme. People do
citizens closer to their homes by establishing not like the concept psychologically may be
1,50,000 Health and Wellness Centres (HWCs)
because it gives money to the family after death,
Pradhan Mantri Jan Arogya Yojana (PM-JAY): in case of life insurance. Some people are of the
Launched in September 2018, the scheme aimed opinion that demise soul can not see anything,
to offer secondary and tertiary care services to so why to after death about the family. Another
the vulnerable population in the society. The thing daughters are not insured for life because
policy aimed to offer medical coverage of Rs. of social reasons. Too much of documentation
5 lakh (US$ 6.63 thousand) per family per year is also the reason of not getting attraction. The

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