Life insurance is important. It is in fact the most crucial element in one’s investment portfolio. Post the Covid-19 pandemic, there has been a drastic change in how we look at life insurance. Instead of looking at life insurance as just another mere personal finance instrument to add, investors are including it as an essential tool to secure the financial future of their families.
As Indians observe “National Insurance Awareness Day” on June 28 this year, it has become imperative to glance at the trends that would help shape the life insurance industry in 2023.
Bhargav Dasgupta, MD & CEO, ICICI Lombard shared, “On National Insurance Awareness Day, we recognize the crucial mission of increasing insurance penetration in India. In a nation brimming with potential and opportunities, awareness and understanding of insurance play a paramount role. The visionary reforms set in motion by the IRDAI have brought forth transparency, consumer-centric practices, and accessibility - ultimately fostering trust.”
There have been drastic changes in the life insurance industry in the past decade, thus, explaining the current form and norms of this industry.
Mayank Gupta, Co-founder & COO, Zopper said, “The Indian insurance sector is at the cusp of change like never before. With a slew of extensive reforms coupled with digital transformation, the sector is striving toward building a financially resilient nation. According to IRDAI’s goal of providing ‘Insurance for All by 2047’, insurers are forming alliances with insurtech firms to expand their business, improve operational effectiveness, and serve the needs of Indians in both rural and urban areas. The insurance sector is undergoing a tech-driven transformation that has the potential to have a huge positive impact on both policyholders and insurers.”
More than anything else, it is the aftermath of the Covid-19 pandemic that ensured enhanced insurance penetration into the country. More people started looking for insurance while others realized the importance of having adequate health insurance coverage.
Raghavendra Rao, Chief Distribution Officer, Future Generali India Insurance Company said, “Recognizing the importance of insurance, we celebrate National Insurance Day every year on June 28th to raise awareness about the significance of being adequately insured and to honour the contributions of the insurance industry in securing our nation's future. The COVID-19 pandemic has brought the importance of insurance to the forefront of public consciousness. The outbreak has caused significant disruptions to lives and businesses globally, highlighting the critical role of insurance in managing unforeseen risks. Health insurance has played a vital role in covering medical expenses and providing access to quality healthcare during these challenging times. Similarly, business interruption insurance has helped organizations weather the storm by compensating for lost income and enabling them to rebuild and recover.”
A chat with some personal financial experts revealed the following possible trends that will not only shape the insurance industry in the year ahead but also lend a firm footing to this industry in the coming decade.
Naval Goel, Founder & CEO, PolicyX.com said, “We will see the following key trends - Digital adoption, adoption of analytics and AI for both marketing and after-sales service, flexible customizable policies, especially in the term.”
Adhil Shetty, CEO, BankBazaar.com added, “There is increased customer awareness towards insurance today. Trends across other sectors such as education, e-commerce, entertainment, etc., mean that customers today have a better understanding of personal requirements and there is a heightened expectation of tailored solutions even in financial products. With an increasingly digital customer base, the solutions are going to be more data-driven and personalized going forward.”
Today's awareness leads to tomorrow’s preparedness. It is imperative to realize the importance of buying insurance early in life. Insurance is a necessity; not a luxury. It is a shield that is not seen but has a palpable effect against sudden and unforeseen circumstances.
As explained well by Mahesh Balasubramanian, Managing Director, Kotak Mahindra Life Insurance Company who summed up the importance of insurance, “Insurance is not just a product; it's a promise of security, is necessary for financial inclusion and is essential for protection and progress. As our country's per capita income increases and aspirations rise, it's essential we recognize insurance's role as Plan B – a safety net that empowers us to move forward with confidence. On this National Insurance Awareness Day, let's strive for a future where the accessibility and understanding of insurance are as universal as the need for it. Let's focus on simplicity, personalization, and easy purchase pathways to convert awareness into demand. After all, the first step towards financial stability is securing your life and health, and the rest follows. To a future where insurance is not an afterthought, but a forefront of every financial plan.”
Insurance should be the first step in deciding your investment portfolio. You must opt for protection first and then yields for a more secure financial future.
