The Policy Bazaar Show is a brand- new series that decodes the grey areas of purchasing insurance. Through the 26-episode series, the show will highlight and discuss a magnitude of topics essential to everyone trying to secure their future. From purchasing the right cover, to switching policies while shifting jobs, to ensuring a comprehensive child cover, insurance experts deliberate, simplify and shine light on the complexities of purchasing insurance in India.
In this week’s episode, our eminent anchor Vivek Law talks about the past, present and future scope of the Indian insurance sector in India with AV Girija Kumar, Chairman-cum-Managing Director of Oriental Insurance Company Ltd. A man who has spent almost 4 decades in the insurance sector.
As defined by policybazaar.com, general insurance (GI) covers insurance of property against fire, burglary, theft; personal insurance covers health, travel and accidents; and liability insurance covers legal abilities. General insurance virtually covers all forms of insurance except life insurance. The most common types of general insurance are motor, fire, home, marine, health, travel, accident and other miscellaneous forms of non-life insurance.
In the past few decades, there has been tremendous development in the general insurance sector both in terms of penetration and emergence of new products. Health insurance, that did not exist until 1986, is today, an integral aspect of financial planning and is the most popular among young millennials. Digitization of the insurance sector has also enabled a much larger reach. The online business for public sector units of the insurance sector accounts to almost 15% in India. Although, the penetration in the country, at present is a meagre 0.93%, it is still a growth as opposed to the 0.5% in the last decade.
The General Insurance in India aims to increase insurance penetration to 2.5% over the next decade. The government has recently announced the merger of 3 public sector units of the general insurance sector. The merger will be beneficial to both the consumers and the sector as it will lead to the emergence of a new brand that has the synergy and geographical reach of 3 units combined. For the consumers, the merger will provide better coverage and additional support. The new regulation will lead to a better reach amongst the young and rural population.
Watch to know more about the evolution of general insurance in India