Vice President M Venkaiah Naidu today said the insurance industry in India was expected to grow to US Dollars 280 billion by 2020 from $84.72 billion in 2017 as the country was poised for higher economic growth.
Speaking at the valedictory session of the 4th South Asian Insurance Regulatory Meet and International Insurance 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 crore was in the infrastructure sector.
"The insurance industry is expected to grow to $280 billion by 2020 as the country is poised for higher economic growth. The insurance market increased from $23 billion in 2005 to $84.72 billion in financial year 2017," the Vice President informed.
He said that an increase in FDI and government schemes to provide insurance cover to people, including farmers, had increased insurance penetration in the country and had spurred the industry.
Naidu said that there was huge potential for growth due to a growing middle class, rise in disposable incomes and greater awareness for insurance coverage.
"As against the global average of 6.2 per cent, the penetration rate of the Indian insurance sector is 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 cyber liability insurance had become extremely vital in the present times with cyber criminals increasingly hacking and stealing valuable and sensitive data, 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 s ..