Insurance as a pillar of economic Independence for women in Tier 2 and Tier 3 cities

Last night, while you were watching prime-time news, an ad break likely flashed across your screen, and chances are, the word "insurance" popped up. This morning, during your metro ride, you probably noticed insurance decals plastered all over. It’s clear—India and insurance are forging a bond that’s becoming inseparable.

The insurance industry in India is booming. With India now the fifth largest life insurance market among the world’s emerging economies, growing at an impressive rate of 32-34% each year, the sector is undeniably on an upward trajectory. Over the past nine years, the industry has attracted nearly Rs. 54,000 crore (US$ 6.5 billion) in foreign direct investment, a testament to the government's progressive approach in easing regulations and fostering growth.

But here’s the real question: Is this impressive growth truly reaching all corners of the country? As we shift our focus from the bustling urban centers to the heart of India—its Tier 2 and Tier 3 cities—a stark reality emerges.

A recent survey revealed that 80% of respondents from Tier 2 and Tier 3 cities do not have health or life insurance plans, and those who do often have only basic coverage. This gap underscores a critical need for greater awareness and education about the importance of insurance, particularly in these regions where financial protection is most needed yet least available.

When the conversation shifts to women, the situation becomes even more concerning. In many households, men still predominantly make all major financial decisions, including those related to insurance. This dynamic leaves women particularly vulnerable. In rural India, insurance penetration among women is alarmingly low—only 1% are insured, and just 29% are aware of the insurance products available to them, according to a recent report. These statistics not only highlight a significant gap in financial protection but also call for urgent action to empower women in these regions. It’s time to recognize insurance as a crucial pillar of economic independence for women in Tier 2 and Tier 3 cities—a tool that can provide them with security and a pathway to financial empowerment.

Why Do Women Need Insurance, and Is the ‘I’ Dream Coming True?

For most men, the women in their lives—whether it’s their mums, sisters, grandmas, or partners—are often the most caring and nurturing people around. But these incredible women, who always put others first, often overlook their own needs, especially when it comes to health and financial security. They consistently prioritize "you" over "I," but maybe it’s time we all start putting their "I" first—ensuring that they have the independence and inspiration that comes from being insured.

Insurance isn't just a safety net; it’s a step toward empowering women to focus on their own well-being. It provides them with financial security and peace of mind, allowing them to thrive and inspire others. Unfortunately, women often focus so much on caring for others that they neglect their own health and financial needs. Whether she’s single, a stay-at-home mom, married, or working, it’s crucial for every woman to have proper insurance coverage.

But here's the encouraging news: more and more women are beginning to recognize the importance of their own health and well-being, as reflected in recent trends in health insurance coverage.

A report highlights a significant shift—there was a 40% surge in health insurance coverage among women in FY’24 compared to FY’23. Diving deeper into these numbers, the "Women's Health Insurance Trends FY'23 Vs FY'24" report reveals a 43% spike in the number of women opting for standalone coverage for themselves. Even more telling is the increase in women selecting higher coverage: the percentage of women choosing coverage above Rs 25 lakh rose from 15% to 24%, while there was a 7% decrease in those opting for lesser sums. This shift isn’t just about urban areas; it’s a sign of a broader change. The democratisation of healthcare access is evident, with a 10.5% increase in policyholders from Tier-2 cities and a 4.3% growth from Tier-3 cities. This data shows that women in these regions are increasingly taking control of their health and financial futures, breaking free from urban-centric barriers and embracing the benefits that were once out of reach.

As these trends show, the 'I' dream is gradually becoming a reality, but there’s still more work to be done to ensure that every woman, especially in Tier 2 and Tier 3 cities, has access to the insurance coverage she deserves.

Empowering Women Through Insurance – How New-Gen Companies are Making a Difference

The numbers are telling a powerful story—more women than ever are taking charge of their health and financial well-being. A 40% surge in health insurance coverage among women in FY'24 compared to FY'23 is not just a statistic; it's a sign of a broader shift. Women are increasingly opting for higher coverage, with a noticeable spike in policies over Rs 25 lakh. Even more encouraging is the growth in Tier-2 and Tier-3 cities, where there’s been a significant uptick in policyholders, breaking the urban-centric barriers that have long limited access to quality healthcare and financial protection.

This is where new-gen financial product delivery companies are stepping in, making a real difference. By leveraging innovative technology and strategic partnerships, these companies are not just offering insurance; they are empowering women to take control of their financial independence. They are ensuring that insurance is not just a luxury for the few but a necessity accessible to all. In doing so, they are playing a pivotal role in shaping a more secure and insured future for women across the nation.