At a recent post-tariff insurance roundtable, Anand Mahindra called India’s rural insurance penetration “shockingly low,” urging smarter bundling of crop, health, and life plans for Bharat.
| Event | Post-Tariff Insurance Industry Roundtable 2025 |
|---|---|
| Speaker | Anand Mahindra, Chairman, Mahindra Group |
| Location | Mumbai, August 6, 2025 |
| Key Point | Rural insurance coverage is still “shockingly low” in India |
| Suggested Solution | Bundle health, term, and crop insurance into unified plans for Bharat |
What Anand Mahindra Said
Speaking at a closed-door insurance industry roundtable, Anand Mahindra spoke clearly and directly:
“It’s 2025 — and insurance penetration in rural India is still shockingly low. If we want to build true financial resilience, we need to bundle health, life, and crop coverage into affordable, trusted packages.”
The event, hosted by the Insurance Federation of India (IFI) in Mumbai, was organized to discuss fallout from Trump’s 50% tariff hike and its ripple effects on India’s risk landscape — but the discussion quickly shifted to rural inclusion.
Why It’s a Problem
According to recent IRDAI data (FY24):
- Rural life insurance penetration: Less than 15%
- Health insurance (non-government): Under 10%
- Crop insurance coverage: ~35%, mostly loanee farmers under PMFBY
Mahindra emphasized that despite schemes like PMJJBY, PMSBY, and PMFBY, actual claim utilization remains poor in many villages — often due to lack of awareness, digital gaps, and mistrust.
“We need insurance to feel as simple and familiar as a bank passbook,” Mahindra added.
The Bundling Model: Bharat Needs All-in-One Coverage
Industry veterans at the roundtable discussed a “bundled model” for Bharat — offering health, crop, and term insurance under one simple premium.
Several executives pointed to successful pilots by:
- Mahindra Insurance Brokers in Rajasthan
- HDFC Life’s bundled rural term + rider strategy
- State government-linked combo policies in Odisha and Chhattisgarh
Insurers say bundling reduces dropout rates, improves perceived value, and lowers distribution costs.
Mahindra suggested that insurers should:
- Work with Agri-tech & healthtech platforms
- Build WhatsApp-first micro-service flows
- Train last-mile agents to explain bundled plans clearly
- Offer rewards for consistent claim-free years
He also urged IRDAI to incentivize bundled products and allow more flexibility in product design for Bharat-specific use cases.
The roundtable also addressed the ripple effects of Trump’s recent 50% tariff hike on Indian goods, which may spike insurance costs for exporters.
Read how marine and trade credit insurers are reacting
Why You Should Care About Rural Insurance Gaps
- Rural India holds 65% of India’s population — but is still underserved by insurance.
- Bundled microinsurance can bridge trust, affordability, and convenience gaps.
- Leaders like Anand Mahindra highlighting the issue may push insurers and regulators to act faster.
Follow eBharat.com for updates on rural insurance pilots, new bundled plans, and IRDAI’s next move.
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