India: Insurance Institute of India remembers the poor at Diamond Jubilee
Source: Asia Insurance Review | Nov 2015
The Insurance Institute of India (III) marked its Diamond Jubilee recently with a call for increasing the access of poor households to insurance so as to prevent them from having to rely on publicly funded support systems and encourage them to adopt alternative, more productive, livelihoods.
At a special function to celebrate III’s 60th anniversary on 26 August in Mumbai, the Vice President of India, Mr M Hamid Ansari, said that insurance can mitigate the economic impact of events like illness, death, disability, fire, theft, and natural disaster on individuals, households, or enterprises.
He highlighted that ensuring that poor households have access to insurance services should be a priority in India. He said for financial inclusion to succeed, it must evolve from being a social or regulatory obligation to a viable business proposition.
Noting that insurance prevalence remains abysmally low, he said: “The low penetration of insurance, despite the large population, is a clarion call to deliver insurance in a cost-effective way to the widest section of the society.”
“The need is to employ emerging technologies, generate awareness by increased financial education of masses and move beyond traditional products to shift from a cost-centric model to a win-win revenue generating model that provides quality financial services on a sustainable basis to the economically disadvantaged.”
The event was attended by over 350 people including CEOs of insurance companies, insurance professionals and academicians.