India’s ambitious target for universal insurance coverage by 2047 is being bolstered by the rapid growth of micro-insurance policies, particularly among underserved and low-income segments. These policies have significantly contributed to increasing insurance penetration across the country. Government-backed schemes under the Pradhan Mantri Jan-Dhan Yojana (PMJDY) are central to this push, providing coverage to millions who previously lacked access to insurance. According to a study, as of April 2023, 66.76% of PMJDY account holders had opted for accident insurance, 31% for life insurance, and 10% for micro-pensions.
JanSuraksha Schemes Driving Adoption
A detailed study by Women’s World Banking focused on 912 rural women across Jharkhand, West Bengal, Assam, and Tamil Nadu, showcasing the widespread acceptance of government schemes. The findings revealed that 68% of respondents were covered under the Pradhan Mantri Suraksha Bima Yojana (PMSBY), an accident insurance scheme. Moreover, 65% had dual coverage under both PMSBY and the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), a life insurance scheme. In addition, 30% of the women had enrolled in the Pradhan Mantri Jan Arogya Yojana (PMJAY), a public health insurance scheme.
The success of these schemes is attributed to their affordability, ease of enrollment, and simplicity, making insurance accessible to a broader population. The role of banking agents has been pivotal, with 72% of the women surveyed being enrolled through agents.
Micro-Insurance on the Global Stage
Globally, the micro-insurance industry is expected to reach $137 billion by 2029, reflecting the growing demand for affordable insurance solutions. Despite this, India’s current insurance penetration remains at 4%, lower than the global average of 6.8%. However, the government’s proactive efforts, including the establishment of 523 million PMJDY accounts (55.6% of which are held by women), have set a solid foundation for achieving the “Insurance for All” goal by 2047.
A particularly promising statistic from the study shows that 80% of women earning less than ₹25,000 annually are enrolled in at least one government-backed scheme. The rapid adoption of these micro-insurance products suggests that India is on the right path toward expanding financial security and inclusion, especially for marginalized populations.
