Microfinance in India has largely been driven by credit products of microfinance institutions (MFIs), and microinsurance has remained a secondary choice for financial inclusion. However, recently, many important developments have taken place in the Indian microinsurance sector. Though India has experimented a lot with microinsurance, the sector is still driven by supply-led interventions.
Moreover, the insurance providers, still, seek government subsidies and donor funding in order to achieve financial viability in preference to designing market-led, sustainable schemes. A strategic perspective towards microinsurance together with innovations in technology and assessment of client demand, probably holds the key to the future of microinsurance in India.