Vaibhav Goyal, MD & CEO of Navi General Insurance, highlighted five factors that could influence the industry’s efforts to expand coverage, ranging from health insurance demand and affordability to digital distribution and claims.
Health insurance is emerging as the biggest growth engine
Health insurance has been one of the strongest growth drivers for the general insurance industry in recent years.
The pandemic increased awareness around medical protection, while rising healthcare costs have made health insurance increasingly important for households.
However, higher awareness has not automatically translated into adequate coverage. Affordability remains a challenge, particularly for comprehensive health policies.
Goyal said the industry will need to focus on making health insurance simpler, more transparent and accessible if it wants to expand coverage.
India still has a large general insurance protection gap
Despite increasing awareness, India continues to lag global markets on general insurance penetration.
Goyal attributed the gap to several factors, including affordability, complex products, distribution limitations and trust issues around insurance.
The challenge for insurers is therefore not just to create awareness but to convert that awareness into actual adoption.
The government’s ‘Insurance for All by 2047’ objective is also pushing the industry to focus more closely on access and inclusion.
Digital distribution could reshape insurance access
Digital distribution is emerging as an important tool for insurers looking to reach customers beyond traditional urban markets.
According to Goyal, digital channels can help insurers reach Tier-2, Tier-3 and rural customers at a lower cost than conventional physical distribution networks.
The shift is also changing the customer journey, with instant quotes, paperless policy issuance and digital servicing reducing some of the friction associated with buying insurance.
India’s digital public infrastructure, including Aadhaar, UPI, India Stack and the account aggregator framework, could further support this transition.
Technology is moving beyond distribution
The role of technology in insurance is no longer limited to selling policies online.
Insurers are increasingly looking at technology across underwriting, pricing, servicing and claims.
Data and digital platforms could also allow insurers to develop smaller-ticket or embedded insurance products for segments that were previously difficult or uneconomical to serve.
For the industry, this could expand the addressable market beyond customers who traditionally buy conventional insurance policies.
Motor and health will remain the industry’s key segments
Health and motor insurance remain the key segments of the general insurance market.
Health demand is being supported by rising healthcare expenses and greater awareness, while motor insurance is linked to vehicle ownership and the mandatory nature of third-party cover.
Goyal said these segments are likely to remain important priorities in the coming years, even as insurers look to expand into a wider set of customers and use cases.
For the broader industry, the bigger question is whether growth in premiums can translate into a sustained increase in insurance coverage.
With penetration still at around 1% of GDP, India’s general insurance market has significant room to expand. But closing the gap with global markets will require insurers to address cost, product complexity, distribution and trust, rather than relying on awareness alone.
