New Age Customers And Their Needs

A strong growth has been witnessed in India’s non-life insurance segment over the last few years.

- Aritra Mitra

The market share of private companies has increased to 50.40% from 13.12% in the last 15 years. Rising internet penetration has improved awareness and accessibility, thereby accelerating demand for insurance products. Leading insurance companies are going for an Initial Public Offering (IPO), signifying a step towards improving disclosure standards and periodicity by making the companies answerable to investors and the society in general.

Public sector insurance giant, Life Insurance Corporation of India (LIC), is facing tough competition from private players that are using new-age digital marketing technologies. According to Insurance Regulatory and Development Authority of India (IRDAI), the market share of LIC in terms of first year premium up to May 31, 2019 slipped to 66.08% from 67.40% up to May 31, 2018.

Emerging trends

Health, motor and crop insurance have emerged among the top non-life insurance segments. While these three have been witnessing steady growth, they have also gained momentum from regulatory changes and positive government initiatives. Samir Gupta, a financial analyst and consultant, told BE, “Majority of the modifications have come under various medical insurance schemes. Earlier, there was only one national mediclaim policy, now several other schemes have been introduced with enhanced benefits.”

Gupta said that earlier there were cappings in case of health insurance. He added, “However, under the National Mediclaim Plus Policy, there is no such capping and one can enjoy unlimited benefits.”