IRDAI Annual Report 2022–2023: The percentage of female subscribers and insurance penetration both saw marginal declines

 IRDAI Annual Report 2022–2023: The percentage of female subscribers and insurance penetration both saw marginal declines

IRDAI Annual Report 2022–2023: The percentage of female subscribers and insurance penetration both saw marginal declines

The annual report of the insurance regulator states that Karnataka, Kerala, and Mizoram had the greatest percentage of life insurance plans sold to women, while Ladakh, Haryana, and Jammu & Kashmir had the lowest percentage. It also demonstrates the increased prevalence of partial payment of health insurance claims.

The ratio of life insurance claims settled decreases somewhat in 2022–2023

A survey by the Insurance Regulatory and Development Authority of India (IRDAI) found that women in India purchased less life insurance policies, with a minor decrease from 34.7% in 2021–2022 to 34.2% in 2022–2023.

Out of the 2.84 crore policies sold in the fiscal year 2022–2023, 97.38 lakh life insurance policies were granted to women.

For this aim, the IRDAI research just took into account individual new business data, such as the quantity of policies and the first year premium for the years 2022–2023. The Life Insurance Corporation of India (LIC) sold a greater percentage of policies to women—35.81 percent—than did private life insurers (30.13 percent).

When it came to the percentage of life insurance policies granted to women, Karnataka (44.23%), Kerala (43.96%), Mizoram (42.97%), Sikkim (42.6%), and Meghalaya (41.81%) were the top states. Conversely, the states with lesser percentages were Ladakh (23.1%), Haryana (27.16%), Jammu and Kashmir (28.07%), Uttar Pradesh (29.53%), and Gujarat (29.59%).

The ratio of life insurance claims settled is somewhat lower.

The ratio of claim settlements to life insurance policies decreased little from 98.64 percent in 2021–2022 to 98.45 percent in 2022–2023. Lower claim settlement ratios of 98.52 percent (compared to 98.84 percent in 2021-22) and 98.02 percent (compared to 98.11 percent in 2021–22) were recorded by LIC and its private sector competitors, respectively.

According to policy calculations, general and health insurance firms settled 85.66% of claims in the health insurance market in 2022–2023. However, the percentage was somewhat lower—71.62 percent—when considering the amount paid. It recommends paying just a portion of hospital expenditures, which is a regular grievance expressed by policyholders. Insurance companies often attribute this to rising hospital expenses, which they argue makes treatment prices excessive, while hospitals argue that insurance companies are not honoring their pledge to pay the bills.

In 2022–2023 general and health insurers paid out Rs 70,930 crore to satisfy 2.36 lakh health insurance claims, as per the IRDAI annual report. Rs 30,087 was the average amount paid for each claim. Of these, 42% of the claims were paid via reimbursement modality, while 56% of the claims were resolved cashless.

stability in the adoption of insurance

The IRDAI has set an ambitious goal to provide "insurance for all" by 2047; nonetheless, the percentage of people with life insurance has decreased slightly from 3.2% in 2021–2022 to 3.2% in 2022–2023. Additionally, non-life insurance penetration did not rise, staying at 1%. IRDAI said in its annual report that as a result, "India's overall insurance penetration declined from the level of 4.2 per cent in 2021-22 to 4 per cent in 2022-23."

The ratio of the total amount of premiums collected to the GDP of a nation is used to calculate the insurance penetration rate (GDP). It is one of the metrics used to evaluate how developed an insurance industry is in a certain nation. In wealthy nations like the United States and Canada, the percentage is higher than 11%.

But insurance density, another metric used for this reason, works better. It is the proportion of insurance firms' premium revenue to the nation's population. It is a common way to express the per capita premium in monetary terms.

While non-life insurance density was constant, life insurance density rose to $70 in 2022–2023 from $69 in 2021–2022. The insurance density grew overall during 2021–2022 and 2022–2023 ($91–$92).