India bares ambition to become sixth-largest global insurance market

“Economy is showing great resilience against pandemic and global political unrest, showing 7% growth as opposed to the global 2.9%,” Panda said, speaking at National Insurance Academy’s annual insurance summit on Monday. “Growth momentum is expected to remain constant, which is a golden opportunity for the Insurance sector, which can go from 10th largest to sixth largest.”

Panda also said the regulator is working on the launch of Bima Sugam, a one-stop shop for all insurance products.

One of the areas the industry should focus on is product simplification and innovation, Panda said, adding that insurers should look at tech-based and region-based coverages because one-size-fits-all insurance is no longer applicable.

Other speakers at the event included LIC chairman M.R. Kumar, who said that only three out of every 100 people in India have a life insurance policy. Despite increased uptake of insurance during the COVID-19 pandemic, penetration remains very low, and industry leaders must work more to increase it, Kumar said.

Saurabh Mishra, joint secretary of the Ministry of Finance, said there is a need to simplify the language of insurance, which contains a high level of English jargon.

“Insurers will have to create simplicity for the public while using insurance-related products and mechanisms. These are a few things that can help us jumpstart the penetration,” Mishra said.