In this deck, we discuss some factors influencing life insurance take-up, the problem with endowment life insurance for the low-income segment, and how better disclosures could be the first step in helping households choose the right insurance product for them.
We use an audit methodology where auditors ask for tax saving instruments from banks and document the disclosures made on product features at the time of sale. In private sector banks with high sales incentives, the high commission product is recommended. In public sector banks, where there are deposit mobilisation targets, fixed deposits are recommended. […]
Insurance companies should align their sales practices to generate the best outcomes for low income households by ensuring easy access to a variety of products with disclosures that provide accurate information.
This blog post summarises key takeaways from a virtual workshop we recently hosted. It was conducted against the backdrop of a study that we recently concluded titled “Can information disclosures influence life insurance purchase decisions for low-income households?”.
Unlike term plans that provide life risk cover or unit-linked schemes, where returns are market-linked, endowment plans offer maturity benefits upon survival & minimum guaranteed return.
This working paper was accepted to the 4th Annual Conference of India Gold Policy Centre at IIM Ahmedabad
The second post in our three-part series on Pensions.
988 Mn Indians Do Not Have Life Insurance. Those Who Do, Are Insured For 7.8% Of What’s Needed To Cover Financial Shock
At least 988 million Indians–more than the population of Europe and 75% of all Indians–are not covered by any form of life insurance, and an Indian is assured of only 8% of what may be required to protect a family from financial shock following the death of an earning member, according to our analysis of government data and industry data.
Financial inclusion is a priority area in the minds of policy makers in India. The larger focus of this debate has been on access to credit and insurance.
What does the asset allocation look like for people living in remote rural India (villages with less than 5000 population)?