Kohima: Nagaland continues to lag behind national averages in life insurance coverage, with estimates suggesting that only around 10–20% of the population is insured, highlighting a significant financial protection gap in the state.
Official data indicates that Nagaland contributes just about 0.27% to India’s total insurance premium pool, reflecting low penetration of insurance products. The state’s insurance density—measured as premium per capita—stands at approximately ₹404, placing it among the lowest in the country.
While no official state-specific figures for life insurance coverage are available, broader indicators suggest limited adoption. Surveys show that only about one in five households in Nagaland has any form of insurance coverage, including health and general insurance. Life insurance, which is typically less widespread than health insurance in developing regions, is therefore estimated to cover a smaller share of the population.
At the national level, life insurance penetration in India stands at around 2.7% of GDP, already below the global average of nearly 7%. Experts note that northeastern states, including Nagaland, fall significantly behind even this modest national benchmark.
Neighbouring states such as Meghalaya and Tripura report relatively higher insurance penetration, underscoring the gap within the region. Analysts attribute Nagaland’s low coverage to a combination of factors, including limited awareness about life insurance benefits, lower income levels in certain areas, and inadequate distribution networks in rural districts.
Experts stress that increasing awareness, improving financial literacy, and expanding last-mile distribution could play a crucial role in bridging the insurance gap in the state.
As policymakers push for greater financial inclusion, expanding life insurance coverage in Nagaland is expected to be key to enhancing household financial security and resilience. The Chief Minister’s Universal Life Insurance Scheme (CMLIS) launched in 2024 for indigenous inhabitants is a positive move towards this direction.