The Future of Insurance Sector in India [Latest Report]
Updated On Oct 14, 2023
A well-developed insurance sector acts as the backbone of a nation as it supports the citizens even in unforeseen events. India has reached 3.69% in 2017.
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After the global pandemic, tremendous inflation has been witnessed in the insurance industry. In FY21, the growth rate of insurance in India was estimated to be 4.2%, including both life and non-life insurance. What could be the possible reason behind this inflation in the insurance sector? Continue reading to find out!
Types Of Insurance In India
At present, there are 54 insurance companies in total. Among these 24 are categorized as life insurance companies and 30 as non-life insurance companies.
Life Insurance: Life insurance, is a contract between an insurance company and a policyholder in which the insurance company pays a lump sum amount to the beneficiaries in the event of the death of the policyholder during the tenure or in case of survival pays out maturity benefit to the policyholder. .
General Insurance: General insurance which is also known as a non-life insurance policy is further classified into various categories including health insurance, motor insurance, travel or accident insurance, fire insurance, and home or property insurance.
Why Is The Insurance Sector Flourishing?
Due to the global pandemic, the past few years were not fruitful for anyone in terms of both health and wealth. During the coronavirus, many people lost their loved ones due to a lack of finances and premium-quality medical treatment. Moreover, some people left their dependents behind without any financial coverage for them. Therefore, learning from this, people now realize the importance of creating a pool of funds and investing their money in a valid health insurance plan.
Besides this, a recent report from the World Health Organization (WHO) states that approximately 1.3 million adolescents and young individuals aged between 15 and 24 died in the year 2020. The early or premature demise of an individual may leave a family in a whammy situation. Therefore, a valid life insurance plan comes in handy to safeguard your near and dear ones financially after your demise. Moreover, it is crucial to buy a health insurance policy to safeguard yourself and your family against critical illnesses.
Digitalization In Insurance Sector
Many sectors have been reformed with the upgrade of technology. Among these, one is the insurance industry. Unlike the old-school days, when people had to spend their time and effort comparing and buying insurance, now they can simply visit the company’s website and get insured. Besides this, there are many other reasons why purchasing an insurance plan online has become a trend.
- Time-saving Process:
One can get insurance by simply filling out a form, uploading appropriate documents, and making a payment. There is no need to go to the insurance company or bother yourself with the tedious paperwork process.
When insurance is purchased online, insurers can provide lower premiums since they save money on distribution network fees, infrastructure, and other operating costs.
- Compare Plans Easily:
There is a wealth of information available on insurance firms online. Moreover, there are websites that can assist you in understanding various insurance providers in depth. By comparing insurance companies and policies available online, one may determine what is best for them.
- Hassle-Free Claims And Renewals:
You can easily renew your plan or can claim your insurance policy through the online portals of insurance companies. Therefore, you need not waste your time by standing in long lines and waiting for your turn.
Undoubtedly, the insurance sector is growling towards achievement. After understanding their specific needs, people are now investing in different insurance plans to cover themselves and their families. Earlier, people relied on insurance agents. However, digitalization has turned the wheels in the insurance industry.