The insurance industry should increase the penetration of its products by increasing awareness in the country and lowering costs by adopting new technology, Finance Minister Pranab Mukherjee said on Wednesday.
Speaking at the Global Insurance Summit 2010, he said financial inclusion is the biggest challenge before the Indian insurance sector.
"One of the important challenges before the insurance industry today is to generate the required level of awareness about the benefits of insurance to our people, particularly (those) living in semi-urban and rural areas. It should be our endeavour to take all necessary steps to ensure the reach of insurance to masses."
He said that lack of an insurance net could result in families slipping back into the clutches of poverty in the event of unforeseen contingencies. "Hence, to provide a hedge against these unforeseen risks, popularisation of micro insurance is one of the essential ingredients of financial inclusion."