(from L to R) G. Srinivasan, director, National Insurance Academy, Devesh Srivastava, CMD, GIC Re,MR Kumar,chairman, LIC, Parmod Kumar Arora, member (Actuary) IRDAI at the 24th Annual C D Deshmukh Memorial Seminar organised by NIA, Pune
“We are watching the situation very closely on this. But I can’t tell you at the moment how do the things pan out going forward. If the idea of composite licence works, then I think, health insurance can fit into our business model,” MR Kumar,chairman,LIC said
Pune:
MR Kumar, chairman, Life Insurance Corporation(LIC) said the corporation is watching the developments panning out of the proposed amendments in the Insurance Acts by the government closely and if the `Composite Licenses’ for the insurers are allowed the corporation will consider entering into indemnity health insurance business.
“We are watching the situation very closely on this. But I can’t tell you at the moment how do the things pan out going forward. If the idea of composite licence works, then I think health insurance can fit into our business model,” he said.
He said that allowing composite licenses is going to be a positive step for the industry, in case it is implemented.
Earlier addressing the 24th Annual C D Deshmukh Memorial Seminar was organised by National Insurance Academy, Pune, on Wednesday, he said today’s companies need to make quantum use of the data deluge and data driven technologies will transform the insurance industry.
The industry needs to be ready with appropriate strategies to fully cater to the customized needs of different segments of population. 20 million people are added to the job market every year and that is a huge number which needs to be targeted, he said.
The mid-life cycle group is a knowledgeable group with access to the internet and technology. They are aware of the products in the market. They are very much conscious about financial planning, and this is a group that needs to be keenly looked upon by the life insurance industry with products such as ULIPs, Pensions and Annuities, and so on. Further,the population of senior citizens is also on the rise. With the advancements in technology and an increase in life expectancy, people are living longer and this group needs to be targeted with annuity products.
Devesh Srivastava, CMD, GIC Re, presented key insights of what the industry can do and what can be done to be part of the disruptive innovation.
He focussed on the importance of increasing the insurance penetration.
“The speed of settlement of claims, satisfaction of customers, smooth onboarding process, hassle-free claims process, etc will play a very important role in building the trust of the customers,” he said.
Parmod Kumar Arora, member (Actuary) IRDAI, said “There is a need to relook at regulations hampering the ease of doing insurance business. we are now working towards the objectives- by 2047, every individual should have adequate personal life cover, every family should have adequate adequate health cover for themselves along with covers for their properties.”
Saurabh Mishra, Joint Secretary, department of financial services (DFS), highlighted how Covid-19 created the most unseen disruption in the market which eventually led to technological innovations.
“ Innovations have been brought in the areas of claims settlement, customer centric products and services. Insurers should be innovative and effect disruption in their business model on a long-term basis.”
Mishra also said life insurers should venture into health products in a big way.
G. Srinivasan, director,NIA, said the Indian life insurance industry is poised for a tremendous growth in the next decade and collected a New Business premium of Rs 3.15 lakh crores in 2021-22 with a growth of 13 %.
Srinivasan also highlighted the life insurance penetration which is 3.2 % and the density is USD 69 which is quite low. He also talked about the huge mortality protection gap of 83 % which on the positive side gives huge opportunities to the industry to tap the market with protection coverages, annuities and retirement products.