Insurance sector contributes its fair share to the Indian economy. As insurance sector grows, our economy also grows exponentially. The bridge of growth has become wider now. The insurance sector is growing faster than the Indian economy. It means that more people are buying insurance policies thanks to the increased insurance awareness.
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According to a report by Insurance Regulatory and Development Authority of India, it was stated that the insurance sector opened up with a striking 17 percent compound annual growth rate(CAGR) on the premiums. It clearly means that our economy is growing by the growth speed of the insurance sector is higher. The 17 percent growth rate is the visible example for that.
Growth Among the Disruptions
The good thing is that this growth is happening despite the major disruptions in the economic environment brought up by the technology. The industry needs to keep up with such changes in order to sustain its overall growth.
The central government's super initiatives such as JAM (Jan-Dhan, Aadhar, and Mobile), Start-up India and Digital India have helped the insurance sector to reach 12 crore clients in a year which is a good thing.
The biggest challenges for the insurance industry are faced not at the time of the first sale but at the time of renewal.
A Good Time For the Insurance Sector
According to V.K. Sharma, Chairman, Life Insurance Corporation of India the year 2017 is a good time for insurance. Sector. The insurance sector is expected to end the financial year 2017-18 with the flying colors.
The icing on the cake is that life insurance domain would shift from a "push" to a "pull" instrument. The highly significant catalyst triggering the growth momentum would be the adoption of latest technology.
In the upcoming years, the remarkable changes in the Indian insurance sector are predicted. This transition will be catalyzed through the technology, regulations, competition, high growth and customer aspirations.
In order to accomplish this growth targets, a highly skilled group of people having expertise in the domain will be required. We might have to outsource them as we do not have the kind of infrastructure that is required to produce such people.
The growth of the insurance sector means that the insurance penetration has been also increased. This would help the insurance sector to grow more and more.Based on the facts and figures, we can say that insurance sector has a tremendous growth potential and if the insurance sector keeps growing at this speed, its growth prospects would also increase.