Traditionally, the most interesting and difficult issues to navigate are the claim settlement and repudiation process which have an impact on the perception of the life insurance industry and its functioning
Growth Prospects
Life Insurance is one of the fastest growing and emerging sectors in India. With a population of over 1.34 billion, India’s life insurance penetration rate is still below 3% of GDP. Awareness about the true purpose of life insurance or long-term savings and protection instrument, is still quite low.
As per FICCI, India’s insurable population is anticipated to touch 750 million by 2020, with a life expectancy at birth of 74 years. Demand for annuity and retirement policies with increasing life expectancy even as the proportion of India’s elderly population (> 65 years of age) will increase by ~ 50% to 120 million by 2030. Apart from these factors, the prospects will be further propelled by high historical nominal GDP growth, moderate-to-low inflation, improvement in the financial savings rate, initiatives undertaken by the government to ensure adequate social security, favorable demographics, growing awareness of insurance and regulatory changes. However, the Indian life insurance industry will have to make a concerted effort towards increasing life insurance awareness so that people invest in life insurance for the right reasons and more importantly, stay invested in it over the long run.
Industry Challenges
This story is from the March 2019 edition of Legal Era.
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This story is from the March 2019 edition of Legal Era.
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