General Insurance Sector to grow by 18% to 20% over the next two decades
Currently the insurance penetration in India is among the lowest in the world
Bengaluru, 09, March 2024: The fact that the insurance sector in India is poised to experience exponential growth over the next two decades with a combination of both opportunities and challenges was the underlying opinion of eminent industry speakers at the Bangalore Chamber of Industries and Commerce (BCIC) Insurance Summit 2024. They were also of the opinion that while regulators have articulated a vision that by 2047 there should be insurance for all, how technology can be used to solve this distribution problem is also something that regulators need to work on.
Delivering the Keynote address, Mrs. Geetanjali Kirloskar, Chairperson and Managing Director, Kirloskar Systems Pvt Ltd, and Chairperson, Toyota Tsusho Insurance Broker India Ltd., said “In the dynamic landscape of India’s insurance industry, we find ourselves at the crossroads of opportunity and challenge. The escalating cyber and various other risks underscore the urgency for the insurance sector to evolve. Projections suggest that affluent households with annual incomes of over thirty lakhs that can afford a good comprehensive health insurance policy will go from 2.6% today covering 37 million individuals to 11% in 2031 covering one 160 million individuals and 26.3% in 2047 covering 437 million people based on purchasing power. India’s health insurance market is expected to approach that of the US by 2031 and perhaps surpass it by 2047. If India is to grow at the pace required over the next 3 decades, its manufacturing sector will need to expand over 14 times. Between the growing infrastructure and new manufacturing plants and machinery, another tremendous opportunity in engineering insurance beckons. It also calls for our industry to reinvent itself before big tech, armed with increasingly powerful artificial intelligence, disrupts the industry. With a commitment to governance and societal well-being, the Indian insurance sector has the potential to redefine its purpose, emerging as a vital catalyst for national progress. I believe the insurance industry could match the growth of the overall economy at the least.”
Mr. G Srinivasan, Ex CMD, New India Assurance, said, “The general insurance sector in India is poised for tremendous growth and is expected to expand at around 18% to 20% for the next 20 years, till India reaches global levels of insurance penetration. Currently the insurance penetration in India is among the lowest in the world. An average Indian spends hardly about ₹900 on insurance, both life and nonlife put together and in general insurance probably only about ₹200. Some of the reasons for this is the lack of awareness about the concept of insurance, how insurance could be a mitigation tool for individuals, families and businesses and lack of awareness of the products. Clearly with increase in growth, increase in standard of living, increase in disposable incomes and awareness about the need for insurance, the average spend of an Indian citizen on insurance will clearly increase in the coming years. It is important for individuals to make insurance work for them. For this they need to understand exclusions and obligations and must give maximum information to get risk better rated. Cost of insurance should not be the criteria for insurances but rather one should examine the product, the claim payment attitude and value adds in terms of risk management. It is also important to understand the claims procedure.”
In his opening remarks, Dr. S. Devarajan, President BCIC and Sr. Vice President, TVS Motor Company said, “Risk should be viewed not just as a threat, but as an opportunity for growth and innovation. Integrating insurance into risk management strategies is crucial for sustainable development. The insurance sector stands at a pivotal and critical juncture, where its evolution is not just necessary but imperative for facilitating economic growth and resilience.”
BCIC Insurance Summit 2024, also witnessed addresses on cyber insurance, D&O liability lines, Marine Insurance, Trade Credit Insurance, and a panel discussion. The event was attended by over 150 delegates from the insurance, brokerage and BFSI sectors.
