general insurance
Insurance Sector in India
Last Updated: August 2013
Brief Introduction
Currently India is a US$41 billion industry. Currently, in India only two million people (0.2% of the total population of 1 billion) are covered under Mediclaim, whereas in developed nations like USA about 75% of the total population are covered under some insurance scheme.
A robust insurance sector is a boon to a country’s economy. The sector facilitates long-term funds for infrastructure development and simultaneously strengthens the risk-taking ability of the country. India’s rapid economic growth and development over the past decade is considered to be very significant on the global canvas.
Indian insurance sector is poised to mark great progress in the years the come. Over the past few years, many foreign insurance companies have ventured into the Indian landscape in order to harness the immense untapped latent potential of this industry. Moreover, the favourable regulatory environment ensures stability and fair play in the entire market.
Industry Dynamics
Seamless growth in the insurance segment is dependent upon certain factors. Some of these include-
Effective distribution channels – the efficacy and cost of various distribution channels are significant to ensure success of players in the insurance business, more so for retail businesses.
Focus on overall financial inclusion – insurance sector in India has increasingly started focussing on enhancing financial inclusion in the country as its long-term objective. The mission of the insurance business should be to provide cover to a larger section of the population and a wider segment of activities.
Consumer needs and preferences – Indian insurance industry has evolved through product innovation, dynamic distribution channels, and vibrant publicity and promotional campaigns by the insurers. Innovation can be seen not only in the form of benefits attached to the products, but also in the delivery systems (through various
Last Updated: August 2013
Brief Introduction
Currently India is a US$41 billion industry. Currently, in India only two million people (0.2% of the total population of 1 billion) are covered under Mediclaim, whereas in developed nations like USA about 75% of the total population are covered under some insurance scheme.
A robust insurance sector is a boon to a country’s economy. The sector facilitates long-term funds for infrastructure development and simultaneously strengthens the risk-taking ability of the country. India’s rapid economic growth and development over the past decade is considered to be very significant on the global canvas.
Indian insurance sector is poised to mark great progress in the years the come. Over the past few years, many foreign insurance companies have ventured into the Indian landscape in order to harness the immense untapped latent potential of this industry. Moreover, the favourable regulatory environment ensures stability and fair play in the entire market.
Industry Dynamics
Seamless growth in the insurance segment is dependent upon certain factors. Some of these include-
Effective distribution channels – the efficacy and cost of various distribution channels are significant to ensure success of players in the insurance business, more so for retail businesses.
Focus on overall financial inclusion – insurance sector in India has increasingly started focussing on enhancing financial inclusion in the country as its long-term objective. The mission of the insurance business should be to provide cover to a larger section of the population and a wider segment of activities.
Consumer needs and preferences – Indian insurance industry has evolved through product innovation, dynamic distribution channels, and vibrant publicity and promotional campaigns by the insurers. Innovation can be seen not only in the form of benefits attached to the products, but also in the delivery systems (through various