2025, Vol. 6, Issue 2, Part B
Underinsurance in life insurance industry: A global perspective
Author(s): Jeevitha E and Michael David Premkumar
Abstract: Underinsurance is a challenge the life insurance industry faces worldwide. It has great implications for financial security and economic resilience. This article discusses the concept of underinsurance in multiple dimensions, exploring its global prevalence and incidence in India. It identifies some critical reasons for underinsurance such as lack of awareness, and economic constraints and it also outlines the consequences of underinsurance. Key strategies are suggested to reduce underinsurance which include collaborative awareness campaigns, leveraging social media, and the introduction of tools to assess life insurance adequacy. Periodic reviews of life cover, insights from measures adopted in other countries, and innovative solutions like customized term plans with health insurance coverage and digital transformation using AI to make the buying process simpler have been emphasized. This article concludes with a note that underinsurance reduction is a shared responsibility of stakeholders and a means to encourage the culture of adequate life insurance coverage.
DOI: 10.22271/27084515.2025.v6.i2b.642
Pages: 121-124 | Views: 475 | Downloads: 158
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How to cite this article:
Jeevitha E, Michael David Premkumar. Underinsurance in life insurance industry: A global perspective. Asian J Manage Commerce 2025;6(2):121-124. DOI: 10.22271/27084515.2025.v6.i2b.642
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