{
  "id": 296387,
  "title": "Insurance penetration remains low despite growth in real estate sector, says expert",
  "url": "https://urgent.news/2026/08/08/insurance-penetration-remains-low-despite-growth-in-real-estate",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-08T06:17:15.000Z",
  "source": {
    "name": "The Hindu",
    "slug": "the-hindu",
    "url": "https://www.thehindu.com/news/national/tamil-nadu/insurance-penetration-remains-low-despite-growth-in-real-estate-sector-says-expert/article71286848.ece"
  },
  "original_language": "en",
  "account": "Insurance penetration in India remains low despite the rapid growth of the real estate sector, according to V.N. Sandeep, Deputy General Manager of United India Insurance Company Limited. Speaking at a session in Chennai, Mr. Sandeep highlighted that general insurance penetration is only 1%, while life insurance is at just 2.7%. He pointed out that awareness of home insurance remains low, despite insurance being more prevalent in urban areas for large projects and infrastructure developments.\n\nThe main challenge for United India Insurance, headquartered in Chennai, is creating awareness among the general public, Mr. Sandeep said. The company offers over 200 retail and commercial insurance products, including home, cyber, health, event, and wedding insurance. To expand its reach, United India Insurance is utilizing micro-offices, insurance agents, and brokers.\n\nMr. Sandeep made a distinction between insurance and e-commerce purchases, stating that insurance should not be bought like products on Amazon or Flipkart. He emphasized that insurance is based on trust, urging buyers to consider a company's experience, claim settlement capacity, and claim settlement ratio. United India Insurance publishes a claim settlement ratio of 95% each year.\n\nClimate risks pose a significant challenge for property insurance, Mr. Sandeep noted. Conventional property insurance covers \"Act of God\" perils such as earthquakes, floods, landslides, inundation, and lightning. United India Insurance has also introduced parametric insurance, where payouts are linked to predefined weather parameters rather than physical damage. If the parameter is breached, the policyholder receives the money.\n\nPremium calculations depend on construction materials, building design, and risk mitigation measures like fire protection systems. Mr. Sandeep advised developers to assess risks before starting projects and obtain adequate insurance coverage. For construction projects, he recommended Contractors All Risk (CAR) policies for general construction and Erection All Risk (EAR) policies for industrial projects involving plant and machinery.\n\nMr. Sandeep described insurance as \"one of the options or best options for risk management,\" highlighting its role as \"financial risk transfer.\"",
  "summary": "The Hindu reports that despite the rapid growth of India's real estate sector, insurance penetration remains low, with non-life insurance penetration at less than 1%. V.N. Sandeep, Deputy General Manager of United India Insurance Company Limited, highlighted that general insurance penetration is only 1% and life insurance is only 2.7%. Sandeep emphasized that while insurance has penetrated urban areas for projects and infrastructure, awareness of home insurance remains low. He noted that United India Insurance offers over 200 retail and commercial insurance products, and the main challenge is creating awareness among the general public. The company is expanding its reach through micro-offices, insurance agents, and brokers, and is aligned with the Insurance Regulatory and Development Authority of India's \"Insurance for All by 2047\" program. Sandeep stressed that insurance should not be purchased like products on e-commerce platforms, advising buyers to consider a company's experience, claim settlement capacity, and claim settlement ratio. He also discussed climate risks, stating that conventional property insurance covers \"Act of God\" perils, while parametric insurance offers payouts based on predefined weather parameters.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}