Aditya Birla Sun Life Insurance Company Limited

Insurance Industry-Road Ahead

The Insurance Industry continues to be a major contributor to the national GDP, as an integral part of the robust Services Sector, and is crucial in supporting business by being a pillar of India's financial infrastructure. According to the latest Economic Survey, insurance penetration in India grew from 2.3% in 2000 to 3.9% in 2013. This growth is a result of increasing life expectancy, savings and Private Sector employment, and rising financial literacy.

As a means to safeguard one's future, insurance is the business of selling dreams and investing in emotions. Examples of this are planning for a son's college fees or owning one's own home. Hence, trust in the insurer is critical to a consumer's decision to invest with them. Unfortunately, complex paperwork and calculations, delays and mis-selling may have weakened customer resolve and confidence.

The Last Few Years

Although CAGR growth for new business premiums was an amazing 31% between 2001 and 2010, it dipped to 2% in 2010-2012. Prudent fund management and responsive regulation have ensured that the life insurance industry continues to remain sustainable and expandable in the longer term. Promoting innovation, fair competition and limiting inefficiency, along with other external drivers of growth, will be the main strategies for increasing the volume of premiums underwritten.

Current Markets for a Non-Life and Life Insurance Company in India

The potential for further increasing penetration is huge as the overwhelming majority of India's population remains untapped. Keeping savings in the form of cash and jewellery is still the norm in many traditional Indian homes, and they need to be educated about better returns for their savings.

The Union Budget for 2015-16 declared a slew of measures to reach out to the unorganised sector and the rural citizen through the Jan Dhan Yojana for universal banking coverage and other state-sustained micro insurance and pension plans for this large category.

Challenges and Strategy

The private life insurance company in India also has great scope to serve this market by utilizing existing distribution channels, such as RRBs, banc assurance and microfinance.

Customer push can be implemented by a life insurance company in India through permutations of long term savings and protection plans. Customer pull will only come through increasing financial awareness, savings and disposable incomes.

Profitability has remained a major challenge for insurance firms but the industry is at a turning point at the moment. While 12 of the 23 life insurance companies in India reported profits after tax in FY10-11, for the rest, the breakeven point remains elusive. Operational costs have risen but the benefits of scaling up have yet to be realized. Industry supervision needs to remain focused on transparency and simplification

Although insurers have done well in designing customer friendly and innovative products, the same spark is missing in applying the right mix of channels for distribution. Firms can no longer afford to stay rigid in their operations or distribution. People's lifestyles and buying habits will determine what model of marketing can be implemented but firms need to be careful in their choice of resources for the same purpose

Toll free (Within India):

1800 270 7000

Outside India: :

+91 22 66917777

(Call charges apply)

Between 9 am to 9 pm, All 7 Days

Send an Advisor

Mail on:

care.lifeinsurance@adityabirlacapital.com

Get to a branch closest to you

Connect with us on Whatsapp:


Step 1. Register

Register by giving a missed call on 7676690033 or SMS OPTIN on 567679 from your registered mobile number


Step 2. Begin Chatting

Save the number 8828800040 as ABSLI contact and say 'Hi' to us on WhatsApp

Other Related Articles

What is the difference between participating and non-participating policy?

When you go shopping, you compare different options, choose the best out of the lot and then negotiate for... Read more

Importance of disclosing correct information before signing up

You may take the effort of sending a bouquet of flowers for your wife's birthday; however, if you do not give...Read more

How much insurance do you require?

A good life insurance policy can protect your family's future in your absence. Having adequate life insurance...Read more

After receiving your policy

Know your rights and duties as a policy holder. As an informed consumer, you should always be aware of your rights and duties...Read more

Beginner's Guide to a Healthy Life Insurance Portfolio @ Aditya Birla Capital

Life Insurance is an understanding, a contract between two parties, namely the insured and the insurer. As a part of this understanding...Read more

How to Deal with an Insurance Policy in the Agent's Absence

Your life insurance adviser is a highly qualified and specially trained individual, who not only helps you in selecting...Read more

Importance of Life Insurance in Your Healthy Financial Portfolio @ Aditya Birla Capital

Life insurance is becoming more and more popular with every passing day. There is good reason for this as well...Read more

Insurance and Inflation

As the next generation of entrepreneurs, engineers and other professionals take over the mantle of India's economic growth, it is time...Read more

Insurance Industry-Road Ahead

The Insurance Industry continues to be a major contributor to the national GDP, as an integral part of the robust Services Sector, and is...Read more

Meaning and Importance of Life Insurance @ Aditya Birla Sun Life Insurance Articles

My Wife's friend Ratna understood the meaning of life Insurance when her husband Amit suddenly met with a tragic car accident and died at...Read more

The important insurance terms to be aware of in India

Buying insurance in India is often a matter of navigating a lot of jargon before understanding the policy's true benefits...Read more

Understanding Inflation

Over the last few years we have witnessed how food prices have risen dramatically. A pack of 100gm biscuits which cost...Read more

What are riders? Why do I need these riders?

When you are looking for that perfect life insurance plan to protect your financial needs, how do you make sure that a policy...Read more

What Are The Different Kinds of Life Insurance Policies?

The TDS for life insurance policies where maturity proceeds are taxable have been halved from 2percent to 1 percent in Budget...Read more

What are the different kinds of riders?

Better coverage, lower premiums, longer tenure or more benefits? Which should you choose while buying an insurance policy?...Read more

Which income tax slab do I fit into?

The end of every financial year in March sees a scramble to collect proofs of investment, submit bills to claim reimbursement for...Read more

Which Income Tax slab suits me best?

As soon as the month of March dawn upon us (end of financial year), everyone runs helter-skelter collecting proofs of investment,...Read more

Why premium should not be the only criteria for buying life insurance @ Aditya Birla Sun Life

You need to plan properly and then buy a life insurance policy. A life insurance policy is a vital requirement these days and you cannot...Read more

Why Should you demat your Insurance Policies

After the news that the IRDAI plans to dematerialise life insurance policies on the same lines as demat of shares held by...Read more

Why taking life insurance matters

Buying life insurance has become extremely simple and also necessary in India. Life is completely unpredictable. Things...Read more