ALL >> Insurance >> View Article
The Life Insurance Market In India: A Study Of The In-demand Product Offerings
A nation with a growing middle class and a large population of savers, is indeed the right place for life insurance to thrive. Such is the case for the life insurance market in India. It is an example of a young market with the potential to have a handsome growth. The analysis of the demographics of the country proves that there is immense scope for the life insurance market to thrive in India—a young population with a largely growing middle class that has the power to purchase and disposition to save.
It is true that like any other sector, the life insurance market in India also has its own challenges—low agent engagement and productivity, lack of qualified agents, unethical sales practices leading to poor persistency and difficulty in building a strong network. In spite of such issues, the insurance market is slated to grow and reach USD 230 billion by 2025. According to IRDA there has been a 71% increase in the insurance sector between 2001 and 2011.
Product mix in the insurance sector
The insurance sector was liberalized in FY1999-2000 that led to a significant increase in the proportion of household assets budgeted for insurance. There are two factors that are majorly affecting the product mix in the insurance sector:
* Economic development: between 2004 and 2008, there was a significant growth in stock market leading to growth in unit-linked business.
* Regulatory activism: the sales of unit-linked products (especially unit-linked pension business) was impacted by unit-linked and pension product guidelines.
The two types of insurance products that have been majorly prevalent in the life insurance market in India are:
* Pensions: pensions have been sold at both individual and group life platforms. Company pension plans and gratuity are targeted by group life policies. Before the unit-linked and pension related regulations declared in 2010, one-third of the business in life insurance sector was through pension plans. However, India still holds as a prospective market for pension plans as it does not offer any social security apart from the Employees’ Pension Scheme 1995.
* Microinsurance: in India 68.7% of its population is living below poverty line. Hence the country is primed to offer microinsurance products. Life and health products forms a major chunk of the microinsurance products, with agricultural products slowly gaining popularity. In fact as per the IRDA mandate some microinsurance products are offered specifically to the rural population.
Market growth of the insurance sector is being propelled by the penetration of mobile and internet. These factors are improving claim management and distribution efficiency. For example, in the rural areas, mobile vans and internet kiosks act as insurance distribution tools. A young self-driven population in India who wants to purchase online without any intermediated channels is shaping the life insurance market in India.
For more information, download life insurance market in India Reports: https://www.researchonglobalmarkets.com/life-insurance-market-in-india-2018-2023.html
Written by a content marketer who keeps updated on industries for market research purposes and studying them.
Insurance Articles1. Advantages Of A Whole Life Insurance Policy
Author: Enroll Lifeinsurance
2. Scenario To Help You Understand The Importance Of Piccolo Insurance
Author: Keith dibble
3. The Reasons Why Music Shop Owners Should Buy Music Dealer Insurance S
Author: Keith dibble
4. Insureatoasis - Easy | Quick | Secure
Author: Oasis Insurance
5. Health Insurance Request Quote Sharjah
Author: Go Finance
6. Fiddle Instrument Insurance – Ways It Can Protect You Financially
7. Get The Clarinet Insurance From The Best Provider
8. An Insight Of Insurance For Retailers Before Starting Your Music Store
9. Specialized Insurance For Musical Instruments Vs. Homeowner’s Insurance
10. Benefits Of String Instrument Insurance And Its Coverage
11. Tips To Choose Music Insurance Company For Instrument Coverage
12. Music Teacher Insurance - A Benchmark Of Professionalism!
13. Do You Need The Advantages Of Term Life Insurance?
Author: Active Capital Reinsurance Ltd
14. Things To Keep In Mind While Buying Oboe Insurance
15. Brass Musical Instrument Insurance And Maintenance Are Two Pillars For Your Gear!
Author: Musical Instrument Insurance