India needs to reconsider its insurance distribution strategies to reach every person in the country and meet the ‘Insurance for All’ goal by 2047, said Deepak Sood, whole-time member (non-life) of the Insurance Regulatory and Development Authority of India (IRDAI).
“If we continue to follow the current distribution structure without looking at other options, then we will reach out to the same set of customers that we’ve already reached,” said Sood during a session at the Global Fintech Festival 2025 in Mumbai.
‘Insurance for all’ is a national mission by the Government of India and IRDAI to provide comprehensive insurance coverage to every citizen by 2047. The vision aims to ensure every household and enterprise has access to life, health, property and accident insurance solutions.
To change the traditional insurance distribution systems, Sood recommended using technology to digitalize distribution.
“AI is in a position to give you much better solutions and make health insurance companies and distributors understand the customer much better,” the official said.
Insurance penetration
India has been struggling to improve its insurance penetration for several years. A lack of awareness and trust in insurance policies, coupled with high premiums, has led the poor and underprivileged in the country to avoid insurance, thereby widening an existing gap.
India’s insurance penetration rate of 3.7% is significantly lower than the global average of 7%, according to the Economic Survey 2024-25. There is a “notable gap” in the country’s insurance coverage, said the survey.
Insurance penetration is calculated by dividing the total insurance premiums collected by all companies in a year by the country’s gross domestic product (GDP) and expressing the result as a percentage.
“To reach the next billion, we need compelling, convenient distribution solutions for everyone across the country, across socioeconomic groups and age groups,” said Sood. “It means to serve your customer when, where, and how he or she desires,” he added.
In an example, he said, when an insurer approaches even a small village, they should be able to approach with a tablet, understand the customer’s needs, explain the insurance policy and close his insurance policy requirements, all at once.
In September, the IRDAI launched the official website of Bima Sugam India Federation (BSIF), a digital platform designed to bring all insurance services under one roof. The initiative aligns with the goal of achieving ‘insurance for all’ by 2047.
The portal will enable users to browse and select from a wide range of life, health and general insurance plans offered by various companies. The platform aims to simplify the entire insurance journey, right from policy selection and purchase to claim settlement and renewal through a completely paperless process using just the policy number.
The portal is expected to enhance transparency and increase insurance penetration nationwide.
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