Expanding Coverage: How Insurance Solutions Aim To Reach The Last MileInsurance companies are continually seeking innovative ways to extend their coverage to remote and underserved populations, a demographic often referred to as the last mile. This expansion is driven by advances in technology and evolving business models that make it feasible to offer insurance products to areas and communities that were previously inaccessible or unprofitable.One of the key strategies in reaching the last mile involves leveraging digital platforms and mobile technology. By using mobile apps and digital tools, insurance companies can offer their services more efficiently and at a lower cost. This approach not only helps in penetrating deeper into rural and isolated areas but also in making the insurance process more user-friendly and accessible for potential clients.Another approach is the development and implementation of microinsurance products tailored to the specific needs of low-income households and individuals in these areas. Microinsurance policies have lower premiums and are designed to provide basic coverage against specific risks, making them more affordable and relevant to people who may not have been able to afford traditional insurance products.Furthermore, partnerships between insurance companies and local organizations, such as community groups, NGOs, and small businesses, play a crucial role in expanding coverage. These local partners can provide vital insights into the needs and preferences of the target population, help in product development, and assist in distribution and claims settlement processes.Innovative distribution channels, including agents and brokers who are familiar with the local context, are also being employed. Training these agents to understand the products and the needs of their communities enables them to effectively communicate the value of insurance, thereby increasing penetration rates.Moreover, the use of data analytics and artificial intelligence (AI) is becoming more prevalent. These technologies can help in assessing risks more accurately in areas where traditional data may be scarce, and in designing products that better match the needs of the last mile populations. Additionally, they can streamline operations, reduce costs, and enhance customer service, making insurance solutions more viable and attractive.The effort to reach the last mile with insurance solutions also involves working closely with governments and regulatory bodies to create an enabling environment. This includes advocating for regulatory frameworks that support innovation and the development of inclusive insurance markets.Ultimately, the goal of expanding insurance coverage to the last mile is not only to increase the customer base of insurance companies but also to contribute to the economic resilience and well-being of these communities. By providing protection against unforeseen events and risks, insurance can play a critical role in helping individuals and families avoid falling into poverty and in supporting their journey towards economic stability and growth.

by | Oct 4, 2025 | Insurance

The insurance industry in developed economies typically has a larger general insurance business compared to life insurance. However, in India, the life insurance business is three times bigger than the general insurance business. This is because in emerging economies, people often rely on life insurance policies with investment components or fixed deposits as their primary safety net. As wealth creation increases, individuals begin to seek out core insurance solutions, leading to growth in the general insurance business.

In India, the general insurance business has a bright future due to the country’s growing economy. As the economy expands, asset creation increases, and the demand for general insurance solutions rises. The general insurance business has already grown in double digits over the past 20 years and is expected to continue growing rapidly over the next 20 years, making it the fastest-growing insurance market globally.

The Indian government has implemented various social security schemes, such as the farmers’ crop insurance scheme, but there is still a long way to go. Currently, only 25% of farmers are covered, compared to over 70-75% in the US and China. There is also a need for insurance solutions for small and medium enterprises (SMEs) and micro, small, and medium enterprises (MSMEs) to mitigate catastrophic losses due to global warming and other issues.

The insurance industry must adapt to changing customer behavior, which demands fast and friction-free experiences. With the increasing use of technology, such as AI and machine learning, new risks are emerging at a rapid pace. The industry must provide personalized and seamless experiences to its customers, leveraging technology to stay ahead of the curve.

As the Indian economy continues to grow, the general insurance business is expected to play a vital role in providing social security nets and protecting assets. The industry must move quickly to provide innovative solutions and improve customer experiences, making it an exciting time for the general insurance industry. With the right approach, the industry can capitalize on the growing demand for general insurance solutions and contribute to the country’s economic growth.