Charting a new growth path: Budget highlights falling insurance penetration
Limited choice of insurance products and absence of people-friendly claim settlement mechanism is leading to lower insurance coverage in rural India
 "Budget 2025-26: Higher FDI limit in insurance to foster innovation")
Illustration: Ajaya Mohanty
Listen to This Article
Challenges
- Trust deficit and low financial literacy are hindering higher insurance penetration
- Limited choice of insurance products and absence of people-friendly claim settlement mechanism is leading to lower insurance coverage in rural India
Takeaways
Also Read
 "Indian growth")
 "Nirmala Sitharaman Budget")
 "Sitharaman, Budget")
 "Budget 2025: Charting a new growth path as demand rises, concerns remain")
 "Defence")
- Hike in FDI limit for insurance sector is expected to foster innovation and bring in more players
- India’s insurance market is poised to grow the fastest among G20 countries, according to the Economic Survey, in alignment with Irdai’s motto of ‘Insurance for All’ by 2047
More From This Section
 "Nirmala Sitharaman, Union Finance Minister")
 "fertiliser, farmer")
 "Budget 2025: Boosting agriculture and rural economy to ease rural distress")
 "Manufacturing sector")
 "import, export, Customs")
Don't miss the most important news and views of the day. Get them on our Telegram channel
First Published: Feb 01 2025 | 11:52 PM IST