Gujarat has 5th lowest rate of life cover for women: IRDAI

Ahmedabad: Gujarat finds itself among the bottom five states with the least number of women having life insurance coverage, indicating a lower number of women in the workforce. According to a report by the Insurance Regulatory and Development Authority of India (IRDAI), only 29% of policyholders in the state are women, highlighting a concerning gender gap in insurance coverage despite being a highly industrialized state.
This figure is notably lower than the pan-India average, as suggested by the report.
The report indicates that out of 2.84 crore total policies issued in the year 2022-23, around 97.38 lakh were taken by women, accounting for 34.20% of the total. This percentage is slightly lower than the 34.7% share recorded in 2021-22.
Experts attribute the lower number of women policyholders to gender inequality in the labour market. Similarly, other states and union territories with the lowest number of women covered for life include Uttar Pradesh (29.53%), Jammu & Kashmir (28.07%), Haryana (27.16%), and Ladakh (23.1%).
Naval Goel, founder and CEO of PolicyX.com, said, “The participation of women in the workforce in Gujarat is less as compared to other states like Karnataka, Kerala, and Telangana. Even though Gujarat is a highly industrial state, the prevalence of the service sector has not advanced to a great extent. Women are typically found in greater numbers in service sector workforces than manufacturing sectors.”
He added, “However, efforts are being made by insurance companies to tailor products to suit women’s needs in both the general and life insurance categories. With increasing awareness, the number of women policyholders is expected to rise gradually.”
The Periodic Labour Force Survey (PLFS) 2022-23 reveals that the female labour force participation rate in Gujarat stands at 21%, significantly lower than the national average of 37%.
Echoing a similar view, Agresh Goyal, a finance and insurance advisor, said, “Fewer women are breadwinners in the family, which naturally reduces their chances of getting a life insurance cover. However, in some cases, families continue to remain reluctant to get a life cover in the name of women. At the same time, awareness is less among women in many cases.”
In contrast, 15 states/UTs have a higher share of women in total policies sold compared to the all-India average of 34.20%, according to IRDAI. This discrepancy is also attributed to a rural-urban divide in workforce participation.