India (Commonwealth Union)_ According to Debasish Panda, chairman of the Insurance Regulatory and Development Authority of India, the Indian insurance sector, which has grown at a CAGR of 11% over the past five years, is expected to maintain its momentum and lead India to become the sixth largest market in the world, up from tenth. According to him, the business has grown at a CAGR of 11% over the past five years, but to cover every individual in India, the financial and social significance of insurance must be emphasized. He added that the regulator is also dealing with Bima Sugam, a single shop for all insurance goods.
During the annual insurance summit of the National Insurance Academy, Panda said: “Economy is showing great resilience against pandemic and global political unrest, showing 7% growth as opposed to the global 2.9%. The insurance industry should not be left behind. Growth momentum is expected to remain constant, which is a golden opportunity for the insurance sector which can go from 10th largest to 6th largest.”
Additionally, he stated that product simplicity and innovation should be a priority. Due to the fact that one size no longer fits all, it is necessary to examine coverage based on technology and geography. According to M.R. Kumar, chairman of LIC who addressed the same event, barely 3 out of every 100 people in the country have life insurance. Though penetration grew during the COVID-19 pandemic, it remains extremely low and must be addressed by industry leaders.
Meanwhile, the Joint Secretary of the Ministry of Finance, Saurabh Mishra, emphasized the need to reduce the insurance industry’s extensive English jargons. According to Mishra, insurers will be required to simplify their insurance-related goods and systems for the general public. These are a few aspects that might assist in accelerating the market penetration. He added that crop insurance and cyber insurance, the two undiscovered industries, will flourish with the support of emerging technology in the near future.
