There are very few people in India who take advantage of the general insurance scheme, but according to an estimate, their number is going to increase rapidly in the new year. The insurance industry hopes that with the simplification of rules and the arrival of innovative products, the needs of the customers will be met in a better way, due to which this growth will be seen in 2025.
The industry also has high hopes from Goods & Services Tax (GST). It is believed here that if there is relief in GST and motor third party rates are reconsidered, an increase in the number of people taking general insurance can be seen.
Managing Director and CEO of Future Generali Bharat Insurance Company Anup Rau says that along with life insurance, demand for products like pet and home insurance may increase. He says that a growth rate of 14% can be touched this year.
At the same time, some industry experts believe that insurance will have to be made affordable and easy. MD and CEO of HDFC ERGO General Insurance Anuj Tyagi says that for this, by innovating products and improving customer service, insurance will reach not only big cities but also tier 2-3 cities.
Tapan Singhal, MD and CEO of Bajaj Allianz General Insurance, says that cyber insurance can become increasingly popular. Apart from this, insurance for disaster management and surety bonds may become popular.
The Insurance Regulatory and Development Authority of India (IRDAI) has said in its recent annual report that the insurance density in the non-life industry has increased from USD 22 to USD 25 in 2022-23. Insurance density reflects the growth of the insurance sector in the country. It is calculated as the ratio of the premium taken by the companies and the population of the country.
Rau says that removing GST will make health insurance affordable. This will make more people take plans and the government’s burden of providing health coverage will be reduced. Motor third party premium has also not been changed for 5 years and this also needs to be changed.
If a report by Swiss Ray is to be believed, the insurance sector in India can grow at a much faster pace than all other G20 countries. According to this, the total premium will grow at a rate of 7.1% between 2024 and 2028 while the international average will be 2.4%.
