(Lto R)Thomas M Devasia, member-Non-Life, IRDAI, B C Patnaik, MD,LIC at 14th Assocham Global Insurance Summit
Thomas M Devasia, member-Non-Life, Insurance Regulatory and Development Authority of India said, “We are working on certain broad-based initiatives towards affordability and availability of insurance, and one of them- Bima Sugam-, is already in the news is the big infrastructure initiative.”
B C Patnaik, MD, Life Insurance Corporation said, “For an insurer, data is sacrosanct and unless we have a sanctity of data, there will be mayhem across the country. India is a country which is underpenetrated and there is a lot of scope in in terms of life insurance premium itself and there is a potential to reach Rs 10 lakh crore at any point of time. For health, we are just at the tip of the iceberg at just 1%, some days we should be reaching around 5-6%.”
Mumbai:
Thomas M Devasia, member-Non-Life, Insurance Regulatory and Development Authority of India(IRDAI) said that the insurance regulator is working on certain broad-based initiatives towards affordability and availability of insurance, and one of them- Bima Sugam-, is already in the news is the big infrastructure initiative.”
A social safety net product called “Bima Vistaar” targeting the untapped geographies is in the works and is soon going to be launched on “Bima Sugam.” The product will be across multiple lines such as property, life, and health segments and will see industry wide participation, he revealed.
He was speaking at the 14th Assocham Global Insurance Summit and Awards, held at Mumbai on Thursday.
Devasia said, the product is not being developed by the regulator but by the market participants with the support of the regulator.
The committee formed by the regulator is also looking at constituting a new distribution force on the lines of banking correspondents called “Bima Vahak”, which will focus on reaching the untapped areas and increase penetration of insurance in untapped areas.
Addressing the event, B C Patnaik, MD, Life Insurance Corporation of India said, “For an insurer, data is sacrosanct and unless we have a sanctity of data, there will be mayhem across the country. India is a country which is underpenetrated and there is a lot of scope in in terms of life insurance premium itself and there is a potential to reach Rs 10 lakh crore at any point of time. For health, we are just at the tip of the iceberg at just 1%, some days we should be reaching around 5-6%.”
Insurance is one of the defining factors of a developed country and an insured country will help the country moving decisively and irreversibly towards a developed society, said Saurabh Mishra, joint secretary, Ministry of Finance.
“If every eligible citizen, every eligible asset is insured, I think we move decisively towards becoming a society which is a developed society from all stretch of imagination,” said Mishra adding that he insurance coverage ratio in the country needs to be increased significantly and the government sponsored schemes will go a long way in doing that.
“ Data should be the DNA of an insurance company from the way it drives the customer, analysing the customer. If you are able to do that, another important sign that will behave like a developed country delivering and consuming insurance,” he said.
Anuj Mathur, MD & CEO, Canara HSBC Life Insurance said , “India is set to become the 6th largest insurance market with an average growth of 14% over the next 10 years. We are at the cusp of becoming the 5th largest world economy and it’s a moment of pride for all of us. Today the business environment is very positive. The insurance regulator IRDAI is really focused on increasing the insurance penetration at an accelerated pace, and the year 2047 is where the government and IRDAI are aiming at insurance for all.”
“We are going to witness more global players with the government’s favourable FDI policy and I think things have really changed in the last two years for the flexibility it has shown, and investors are really looking at India as an investment destination.”
Sarbvir Singh, CEO, Policy Bazaar said, “We are a unique country and when you think about it, insurance is the best possible solution compared to relatively higher income countries which have social security. Term products are cheaper in India compared to Singapore. Health insurance is an amazing product and is relatively affordable. It is completely networked till the last step, he said.
“In my opinion products are not the problem. Actual problem is not awareness, the problem is action. The 30 crore, 40 crore or 50 crore population have the wallet, but still, they are not buying the volume they should have, for their own individual reasons. One of the first things that strikes you is awareness, there is always a concern that there is not enough awareness but in my opinion the awareness is only the surface, actual problem is not awareness actual problem is action. Action issue vs awareness issue.”
G Srinivasan, National Insurance Academy said, “The next level of penetration will come from technology and data, which will really play a very important role in achieving present customer experience. Augmented reality can really help in risk inspections, loss assistance. There’s no need for people to go and assess losses. Blockchain can help in development insurance along with technology known solutions for better claims settlement and better customer experiences.”