Total individual wealth in insurance may almost double in next 5 years

Increased awareness, ease to avail insurance through improved technology, regulatory changes, and rising underinsured young population to catalyse the process.

Insurance forms the third largest asset class with a 14.08% share in total individual financial assets after direct equity and FD said india Wealth Report 2019 by Karvy Private Wealth. Indivisual wealth in insurance may grow at a CAGR of 14.46% in the next 5 years from INR 36.9 trillion in FY2019 to  INR 72.4 trillion in FY2024, the report predicted.

The report said that there is still a huge market for advisors and agents to explore in the insurance sector. In a nation of 1.3 billion people, it is quite suprising that our insurace coverage  is as low as 20%, the report said. Adding to it, the majority of indians are not adequately insured. This means more than 80% of indians are yet to buy sufficient life insurance cover under any life insuance scheme.

Going ahead, multiple growth drivers will be:

• Increased awareness about the importance of buying an adequate insurance cover with efforts by life insurace companies for educating indians across length and breadth of India.
• Increase availability & ease for purchase with the use of technology for online purchase, including from mobile applications on smartphones.
• Regulatory changes and continuition of income tax benefits.
• Changes in demographic factors such as growing underinsured younger population with need of child plans and older population with need of retirement plans.

Latest News: 

INR 1.01 crore fine on Cholamandalam MS General Insurance

IRDAI has imposed a fine of INR 1.01 crore on Cholamandalam MS General Insurance for violation of the regulatory norms such as paying commission on ported policies and offering discount on premium.

According to IRDAI  norms, insurers cannot pay commission to intermediary on acceptance of a ported policy. " As portablity is an option given drictely to the insured, there is no rule of an intermediary and hence, no commission shall be payable by an insurer to any intermediary in the year of porting ."said IRDAI.