Page 43 - The Insurance Times May 2025

Inclusive Insurance

Inclusive Insurance - Bridging the Protection Gap

for Vulnerable Communities

Introduction stitutions (MFIs) boosts penetration among rural
women.
Inclusive insurance aims to extend financial protection to
underserved and vulnerable populations, ensuring that ev-
ery individual, regardless of income or social standing, can Inclusive Insurance in India
mitigate risks to their lives, health, and assets. This case Progress
study explores the critical aspects of inclusive insurance, its India has emerged as a significant player in inclusive insur-
current status, challenges, and the way forward for creat- ance, with several schemes and innovations:
ing equitable insurance ecosystems. 1. Government Schemes:
o Pradhan Mantri Jan Arogya Yojana (PM-JAY):
Understanding Inclusive Insurance Health insurance for the economically weaker sec-
tions, covering 10.74 crore families.
Inclusive insurance primarily targets low-income groups,
informal sector workers, and rural populations often ex- o Pradhan Mantri Fasal Bima Yojana (PMFBY): Crop
cluded from traditional insurance frameworks. Key seg- insurance for farmers, providing risk protection
ments include: against yield losses.
1. Microinsurance: Affordable, low-premium products o Pradhan Mantri Suraksha Bima Yojana (PMSBY):
tailored to protect against specific risks. Low-cost accident insurance accessible through

2. Agricultural Insurance: Coverage for crops and live- banks.
stock to safeguard farmers from climate-related risks. 2. Private Sector Initiatives:

3. Health and Life Insurance: Low-cost products to ad- o Insurance companies collaborate with NGOs and
dress health emergencies and provide life protection. MFIs to distribute microinsurance products.

4. Disaster Risk Insurance: Community-based solutions for o Digitization and mobile platforms improve out-
areas prone to natural calamities. reach to remote areas.
Challenges
The Global Landscape Despite progress, significant gaps remain:
Countries like the Philippines, Ghana, and Bangladesh have Low Awareness: Many potential beneficiaries lack
pioneered inclusive insurance through public-private part- awareness about available insurance schemes.
nerships and regulatory reforms. For instance: High Distribution Costs: Reaching rural populations in-
Philippines: A leader in microinsurance, with regulatory volves logistical and operational challenges.
mandates fostering product innovation. Trust Deficit: Limited financial literacy hinders trust in
Ghana: Mobile technology enables seamless premium insurance providers.
collection and claims disbursement. Regulatory Bottlenecks: Simplifying processes for
Bangladesh: Microinsurance linked to microfinance in- claims and distribution remains a challenge.

40 May 2025 The Insurance Times