Mumbai, 14 December 2024: “Insurance sector is growing at 15 to 16 percent and will grow further as a bill to allow 100% foreign ownership in companies is awaiting to be placed in the parliament. The sector is not just a pillar of financial stability but also a catalyst for economic growth and social security. The task before us is to navigate the challenges, seize the emerging opportunities and align with the nation’s vision of a vibrant and sustainable financial ecosystem.” said Shri Satyajit Tripathy, Member- Distribution, Insurance Regulatory and Development Authority of India at 16th Global Insurance Summit and Awards event organised by ASSOCHAM.

“At 3.8% of GDP and a density of US$95, India’s insurance penetration is lower than global average due to limited awareness and gap in up-skilling employees and education. The increasing frequency of natural disaster highlights the urgent need for comprehensive catastrophic insurance product and risk pools. We must develop underwriting capacity to write those risks and prevent those underwriting challenges going abroad with higher pricing. Capacity for underwriting higher complex industrial risks, satellites, marine risks and the emerging risks in chemical industries and the attendant complexities need to be developed quickly” said Mr Tripathy.

“The contribution of Bimaru states to the GDP are growing significantly. Insurers when device products used to avoid such states leading to concentration of intermediaries in a few pockets. This leads to the question of renewing licenses of insurers if the policies are not reaching to the people for which it is devised. The regulator’s job is not to give license and renew it year after year.” he added.

Speaking at the event, Girija Subramanian, Co-Chairman, Assocham National Council for Insurance, and CMD, New India Assurance Co Ltd., said, “Insurance sector is now one of India’s sunrise industries, which is also one of the most competitive and dynamically evolving industries today. While the sector is poised for a major transformation, economic growth and expanding middle class, rich demographic dividend innovation and regulatory support is driving the insurance market growth today. Additionally, the infusion of capital and expertise from global players can bolster the industry’s capacity to adopt advanced technologies such as artificial intelligence and data analytics for risk assessment, claims management and customer engagement.”

“The Bhima Vahak initiative from IRDAI is a welcome move that will be one of the largest employment generators bringing out the entrepreneurial side of the youth and thereby offering excellent growth opportunities while contributing to the growth of the nation,” added Subramanian.

From growth prospective, India’s insurance sector is becoming a very hot destination for investors and promoters. “I think we are having a brilliant opportunity right now. India is shining, and we’re very happy to be part of it. Delving into the theme, India’s Insurance Vision: Challenges and Way Forward, I will in fact rephrase it, seeing opportunities, challenges and way forward,” said Anuj Mathur, Chairman, Assocham National Council for Insurance, and MD & CEO, Canara HSBC Life Insurance Co Ltd.

“India is poised to become a $ 45 trillion economy by 2047. Insurance plays a pivotal role, not merely a safeguard against uncertainties, but as catalyst for growth resilience, and empowerment” added Mathur.

On the sector witnessing technology disruption, G Srinivasan, Advisor, Assocham National Council for Insurance, and MD & CEO, Galaxy Health and Allied Insurance Co Ltd., said, “Today there are a large number of insurtech changing the way insurance is being done. There has been a lot of positive disruption and these companies need to be encouraged. Technology as an enabler of reaching out to people, improving customer experience, improving the “customer service is going to gain importance..

Sridhar Narayan, Chief Business Officer, Perfios Software Solutions while addressing the summit said, “There is an unprecedented and phenomenal opportunity for facilitation and greater penetration of insurance products in the country. The opportunity is there because the insurance regulator, insurance companies and technology providers have come together. The use of InsureTech is also playing a big role from consumer, insurance companies and insurance aggregator’s perspective.”

Mr Rajiv Gupta, Co-Chairman, ASSOCHAM National Council for Insurance and President, PB Fintech Ltd (Policy Bazaar & Paisa Bazaar) has given the vote of thanks and highlighted the potential of technology to drive a more inclusive insurance sector for economic growth and societal progress.