Insurance in India has made significant strides

Managing directors and chief executive officers (MDs and CEOs) of general insurance companies gathered at the Business Standard BFSI Insight Summit, 2024, to discuss 'many challenges' they face. ANUJ TYAGI, MD & CEO of HDFC Ergo General Insurance Company, ANUP RAU, MD & CEO of Future Generali India Insurance, ANIMESH DAS, MD & CEO of ACKO General Insurance, gave their views on the road ahead for the industry. Edited excerpts:

- Edited excerpts

What needs to be done to increase penetration in the insurance sector?

Tyagi: Insurance penetration in India has made significant strides in recent years, but there's still much to be done. The regulator has already introduced pivotal changes, starting with giving insurers the freedom to design bespoke products. Earlier, the same products were offered in both urban and rural markets, limiting relevance and accessibility. Now, insurers have the flexibility to create customized solutions tailored to specific demographics and regions.

The distribution framework has also evolved. Many companies now leverage advanced digital tools, and the regulator's 'Insurance for All by 2047' vision has allocated states to specific insurance companies. Additionally, initiatives like the Bima Trinity (Bima Sugam, Bima Vahak and Bima Lokpal) are set to revolutionize the landscape. For example, Bima Vahak empowers women to sell small-ticket, relevant and comprehensive insurance products using digital tools, bringing services directly to customers. This localized, technology-driven model ensures better outreach and faster transactions.

We are already seeing progress. Insurance companies are investing in new offices, recruiting Bima Vahaks and developing region-specific strategies. These efforts are expected to show significant results in the near future, transforming the penetration landscape.