Millions of self-reliant adults in India remain outside private coverage

Private insurers struggle to cover self-reliant adults

India’s life insurance market covers an estimated 170–225 million self-reliant adults through individual and group policies, whilst about 370–380 million vulnerable adults are insured via government programmes or microinsurance, according to a recent NFASL report.

Coverage amongst self-reliant adults has been largely stagnant, whilst insurance penetration in the vulnerable population has increased through microinsurance and government-backed schemes. Meanwhile, distribution reforms could create opportunities for private insurers, though regulatory changes are ongoing.

Companies with strong positions include Max Financial Services and SBI Life Insurance, with price targets raised from $17 (₹1,400) to $23.6 (₹1,935) and $22 (₹1,800) to $29.9 (₹2,455), respectively.

HDFC Life Insurance and ICICI Prudential Life Insurance are rated neutral, with revised targets of $9.9 (₹815) and $9 (₹740), reflecting steady performance but limited expected growth.

The report divides India’s adult population into roughly 500 million self-reliant “Atmanirbhar” adults and 530 million vulnerable adults who depend on government support for basic needs.