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Insurance industry set to touch USD 280 bn by 2020: Vice-Prez

Press Trust of India  |  Hyderabad 

M Venkaiah today said the industry in was expected to grow to US Dollars 280 billion by 2020 from USD 84.72 billion in 2017 as the country was poised for higher economic growth.

Speaking at the valedictory session of the 4thSouth Asian Regulatory Meet and International Conference here, he said investments made by the insurance companies in various sectors amounted to Rs 30. 76 lakh crore by the end of 2016-17, of which over Rs 2. 40 lakh crorewas in the infrastructure sector.

"The is expected to grow to USD 280 billion by 2020 as the country is poised for higher economic growth. The increased from USD 23 billion in 2005 to USD 84.72 billion in financial year 2017," the Vice President informed.

He said that an increase in FDI and government schemes to provide to people, including farmers, had increased in thecountry and had spurred the industry.

said that there was huge potential for growth due to a growing middle class,rise indisposable incomes and greater awarenessforinsurance coverage.

"As against the global average of 6.2 per cent, the penetrationrate ofthe Indian insurance sectoris 3.39 per cent," he said.

Stating that there was a need for insurance companies and regulators to evolve with changing times, he said the focus should be on curbing unfair trade practices and ensuring availability of policies and products to the common man at affordable prices.

As the volumes of subscribers grow, there was a need to prevent fraud and protect the interests of the subscribers who are paying premium, he said.

Cyber security and had become extremely vital in the present times withcyber criminalsincreasinglyhacking and stealing valuableand sensitivedata, he said.

He hoped that the recently announced National Health Protection Scheme to provide coverage to 10 crore families, the Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana would give momentum to the insurance sector and mitigate financial risks of poor families.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sun, February 11 2018. 20:10 IST