Introduction for Life Insurance Industry
The Insurance Industry is critical to the economic development of any country. A well-developed insurance sector boosts economic risk-taking as it offers some safety in case of an unforeseen, loss-causing incident. In the event of life or health loss, it also offers much-needed assistance to family members. Strong financial variables and the government pushing correct buttons. The technological applications have driven all Indian insurance sectors on a glorious road. Also in placing our nation on this growth trajectory, the life insurance industry has delivered a significant contribution.
In all phases of a life insurance contract, life insurance businesses have already begun implementing technology on a bigger scale. Beginning with the issuance of a pre-policy, i.e. verification of the applicant’s proposal to pay the claim. The government’s digital push along with a powerful push toward a cashless economy. It has also given significant assistance in implementing digitization that has affected every aspect of the Life Insurance Industry.
The life insurance sector in India has grown steadily. The fresh company premium grew at a CAGR (Compounded Annual Growth Rate) of 14.44 percent over a six-year period from 2012 to 2018. Private insurance companies ‘ market share in 2003 was 2.00 percent, but in the financial year 2019 it grew to 33.76 percent in terms of premium.
Life insurers have also begun to use different methods to reach individuals across the nation’s length and grid.
Innovative methods such as mobile apps from life insurers, websites, online broker platform integration and POS agents have allowed individuals to secure their lives with life insurance. The digital push has also helped the insurer provide a decreased policy issuance time and other customer-related services via their internet platform to provide life insurance policies.
Road Ahead | Life Insurance Industry
With several modifications in the legislative structure that will lead to further modifications in the manner the sector performs its operations and engages with its clients, the future looks promising for the life insurance sector. The insurance industry as a whole is to achieve 280 billion dollars by 2020.
For the next four to six years, the life insurance sector in the nation is anticipated to develop by 10-13 percent annually.
The development of Indian life insurance industry will be supported by demographic variables such as increasing middle class, young insurable population and increasing awareness of the need for security and retirement planning.