Indian insurance industry can be sixth largest globally: Irdai chairman

The Indian insurance sector, which is growing at 11 per cent CAGR for the last five years, the momentum is expected to continue and could lead India to become the sixth largest market globally, from ten now, said Debasish Panda, chairman, Insurance Regulatory and Development Council of India.

He said that the industry has been growing at 11% CAGR for the last 5 years but to insure every person in India a highlighted importance of insurance as financial and social protection has to be worked upon.

He also said that the regulator is working on Bima Sugam- a one stop shop, for all insurance products

“Economy is showing great resilience against pandemic and global political unrest, showing 7% growth as opposed to the global 2.9%, he believes 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,” Panda said at National Insurance Academy’s annual insurance summit.

“More than 50% of vehicles remain uninsured which is a clear indication of the unavailability of adequate insurance covers. He believes that the reins are in the hands of the younger generation to come up with innovative, efficient and tech based solutions. This can only be achieved through more focus on surveys and research,” Panda said.

He also said one of the focus areas should be product simplification and innovation. Tech based coverages, region based coverages have to be looked into because one size fits all is no longer applicable.

Speaking at the same event, LIC chairman M.R. Kumar only 3 in every 100 people in the country have a life insurance policy. Even though penetration increased during the COVID-19 pandemic, it still is very low and needs to be worked upon by industry leaders. 

“In 2021, India also witnessed the highest growth in high net worth Individuals. This led to a huge increase in the consumer’s appetite for better and more customized insurance products and thus, the insurers are looking forward to meeting these needs,” he said.

Saurabh Mishra, Joint Secretary, Ministry of Finance, highlighted the need the need to simplify the insurance industry from the huge English jargons. 

“Insurers will have to create simplicity for the public while using insurance-related products and mechanisms. These are a few things that can help us jump-start the penetration,” Mishra said.

He said some of the unexplored areas include agriculture insurance and cyber insurance which will boom with the help of newer technologies in the near future.