India Observes National Insurance Awareness Day Highlighting Health, Life Insurance Challenges

National Insurance Awareness Day, observed annually on June 28, serves as a crucial reminder of the importance of reviewing and understanding insurance policies to ensure they meet current needs and provide financial protection against unforeseen events. In India, experts highlight challenges such as low penetration in health and life insurance due to limited awareness, financial literacy, and cultural attitudes, emphasizing the need for product simplification and customer-centric design to increase adoption. The insurance sector in India is growing rapidly, with life insurance expected to expand at a rate surpassing the global average, supported by increased Foreign Direct Investment limits and government policies. The COVID-19 pandemic heightened awareness about health insurance, shifting perceptions from insurance being optional to a necessary safeguard, prompting many insurers to integrate wellness incentives and technology to promote healthier lifestyles and reduce long-term costs. Innovations like wellness points, teleconsultations, and behavior-based rewards represent a transformation of health insurance into an active wellness partner, helping reduce anxiety around healthcare and encouraging preventive care. Across various regions, campaigns and expert advice on Insurance Awareness Day aim to educate the public on the value of insurance, urging regular policy reviews, premium payments, and clear understanding of coverage details to secure financial futures.