Mumbai, Jan. 31 -- India's insurance penetration at 3.7% is much lower than the global average of 7%, and there is a "notable gap" in the country's insurance coverage, said the Economic Survey 2024-25 on Friday.

This lag in insurance coverage presents opportunities for insurers. They can expand their reach in tier-II and tier-III cities and rural areas with low awareness and accessibility.

"Insurance density in India is relatively low compared to global standards. Innovative distribution models can facilitate the inclusion of underinsured customers who are already covered by government schemes," the survey said, citing schemes such as the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Fasal Bima Yojana (PMFBY), and the...