India: Insurance mart could expand by 230% to US$280 bln in 3 years
Source: Asia Insurance Review | Mar 2018
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India’s Vice President M Venkaiah Naidu has said that the domestic insurance industry is expected to grow to US$280 billion by 2020 from $84.72 billion in 2017 as the country is poised for higher economic growth.
Speaking at the South Asian Insurance Regulators’ Meet and International Insurance Conference, he said that an increase in FDI as well as government schemes to provide insurance cover to the people, including farmers, had increased insurance penetration in the country and had spurred the industry.
He said that there is huge potential for growth due to a growing middle class, rising disposable incomes and greater awareness of insurance. Insurance penetration in India remains low at 3.39%, compared to the global average of 6.2%, he said.
Stating that there is a need for insurers and regulators to evolve with changing times, he said the focus should be on curbing unfair trade practices and ensuring availability of policies and products to the common man at affordable prices.
He hoped that the National Health Protection Scheme, proposed in the 2018-19 Budget, to provide coverage to 10 crore families, and other government-backed low cost insurance schemes, would give momentum to the insurance sector and mitigate financial risks of poor families. A